Latest news with #MinistryforEconomicCooperationandDevelopment
DW
a day ago
- Business
- DW
Germany to cut development aid – DW – 06/30/2025
Germany is ramping up defense spending — while cutting funds for development cooperation. Aid organizations warn of the consequences for millions, amid a world beset by wars and crises. Germany's draft federal budget for 2025 includes sweeping cuts. The Ministry for Economic Cooperation and Development (BMZ) is set to receive just €10.3 billion ($12.1 billion) — nearly a billion less than in 2024. It's the second consecutive year of reductions. A glance back at 2022 underscores the scale of the decline: at that time, Germany was still spending €13.8 billion ($16.2 billion) on development aid. Michael Herbst, chair of the umbrella organization VENRO, which represents around 140 development NGOs in Germany, illustrated the human cost of these dramatic cuts amid growing global conflict: "More than 100 million people are displaced. At the same time, more and more donor countries are pulling back." That's why, he argues, Germany needs to ensure stable funding for development cooperation and humanitarian aid. But the opposite is occurring. Germany's cuts come at a time when US President Donald Trump, early in his second term, has also initiated deep reductions in development aid, reportedlyslashing around 80% of funding. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The North Atlantic Treaty Organization (NATO) agreed at its recent summit on June 25, 2025, that each member state should spend 5% of its economic output on defense annually. Against this backdrop, the global decline in development aid stands out all the more starkly. The consequences are already becoming clear, especially in the field of humanitarian assistance. The US has completely withdrawn its support for the UN-administered relief fund. Faced with sweeping international cutbacks, emergency aid coordinator Tom Fletcher says he is being forced to shut down numerous programs for the world's poorest. Just weeks ago, the UN representative warned that the impact on those in need and suffering from hunger would be devastating. Instead of the originally projected $44 billion, Fletcher now expects just $29 billion to be available for distributing food, water, medicine, shelter, and other essential aid. According to him, the reduced funding will only enable 114 million people to be reached — down from the 180 million originally targeted. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Due to the sharp reduction in the BMZ budget, Germany's so-called ODA ratio (Official Development Assistance) fell below its self-imposed goal of 0.7% of gross national income in 2024. It had consistently remained above that threshold since 2020. Humanitarian emergency aid is being slashed by 53% to around €1 billion ($1.2 billion). VENRO chair, Herbst, says the move is short-sighted: "As the world's third-largest economy, Germany can and must take responsibility here. It cannot continue cutting budgets in these areas." However, his push for a reversal was unsuccessful. As an export-driven nation, Germany depends on strong international ties and global stability. "The German economy benefits from a solid reputation and reliable relationships in countries of the Global South. That helps secure jobs here at home, as well," Herbst points out. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The NGOs Welthungerhilfe and Terre des Hommes give the federal government a poor overall assessment. However, the coalition agreement between the governing center-right Christian Democratic Union/Christian Social Union (CDU/CSU) and center-left Social Democratic Party (SPD) describes the cuts to development and humanitarian aid as "appropriate." In response, the aid organizations counter: "That contradicts the government's own stated goal of ensuring sustainable humanitarian funding — especially at a time when other donor countries are pulling out." All the same, German Development Minister Reem Alabali Radovan (SPD) affirmed that Germany remains committed to its global responsibilities – "despite painful budgetary constraints on development spending imposed by the coalition agreement."While you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.
See - Sada Elbalad
15-02-2025
- Business
- See - Sada Elbalad
Germany Invests in Green Hydrogen in Morocco
Germany has approved a major investment in Morocco to support the production of green hydrogen and promote sustainable energy in the fertilizer industry. The initiative, backed by the German Ministry for Economic Cooperation and Development, is part of the Energy Transition Technologies Development Fund and aims to reduce reliance on fossil fuel-based fertilizers while making food production more sustainable. Under the agreement, Germany will provide a €30 million grant to a subsidiary of the Moroccan OCP Group, the world's largest phosphate producer. The funds will support the construction of a green hydrogen production plant in an industrial zone south of Casablanca. This facility will be powered by renewable energy from wind and solar farms and will convert green hydrogen into green ammonia, a crucial component for sustainable fertilizer production. The project is part of Morocco's broader strategy to become a leader in green ammonia production, with the goal of attracting multi-billion-euro investments and meeting 2% of global ammonia demand in the coming years. Joachim Flasbarth, Germany's State Secretary for Economic Cooperation and Development, emphasized that this investment marks a significant step toward Morocco's entry into the green hydrogen sector. He highlighted that the partnership between Germany and Morocco sends a strong message about moving away from fossil fuel-dependent industries and advancing sustainable production methods. Flasbarth also noted that green hydrogen cooperation offers multiple advantages, including value chain development for producing countries, energy security for Germany, and export opportunities for German technology companies specializing in hydrogen production.
