As European governments finalize their Official Development Assistance (ODA) budgets for 2025, international NGOs are bracing for significant changes. While some countries are scaling back their commitments, others are striving to increase their contributions. Below is a detailed overview of how major European donors are shaping their ODA for the coming year.
Netherlands: Major ODA Reductions Ahead
The Netherlands has historically been a leader in global development assistance, but significant cuts are on the horizon:
A planned increase of €300 million (US$316 million) in ODA between 2022 and 2024 will be followed by annual increases of €500 million (US$526 million) from 2025 onward.
Despite this, the new coalition government has announced ODA cuts, starting with €350 million (US$380 million) in 2025. By 2027, the annual ODA cut is expected to reach €2.5 billion (US$2.7 billion) .
Norway: Consistent but Below Target
Norway's 2025 ODA budget remains largely unchanged, but falls short of its ambitious targets:
NOK52.9 billion (US$4.8 billion) is allocated for ODA in 2025, representing 0.92% of GNI, below the 1% target.
Despite some reductions, key areas such as humanitarian assistance and climate adaptation will see increased funding, including NOK300 million (US$27 million) more for humanitarian aid and NOK380 million (US$35 million) for climate initiatives.
The Nansen Program for Ukraine will receive a substantial boost, increasing from NOK75 billion to NOK134.5 billion.
Germany: Substantial ODA Cuts
Germany’s federal budget for 2025 includes steep cuts to ODA-related ministries:
Total cuts to ODA-relevant ministries are estimated at €19.8 billion (US$21.5 billion).
The Federal Ministry for Economic Cooperation and Development (BMZ) will see its budget reduced by €937 million (US$1 billion), while the Federal Foreign Office (AA) will face cuts of €836 million (US$907 million).
Italy: Conflicting Trends Amidst Economic Challenges
Italy presents a mixed picture for ODA:
The country has pledged to maintain ODA levels despite economic challenges.
However, the draft 2025 budget includes severe reductions in humanitarian assistance, cutting funding by almost 50% (source). Despite these cuts, Italy’s bilateral ODA grew by 46% between 2021 and 2022, and the country has pledged €185 million to the Global Fund.
Spain: Committed to ODA Growth
Spain is taking a different approach by aiming to increase its ODA:
Spain has set a goal to spend 0.7% of its Gross National Income (GNI) on ODA by 2030, a significant increase from the current 0.3%.
In 2022, Spain's ODA reached US$4.3 billion, making it the 12th-largest OECD DAC donor.
The approval of Spain’s 2025 ODA budget has been delayed due to political developments, including unexpected elections in Catalonia.
Sweden: Falling Short of Long-Term Goals
Sweden's ODA budget for 2025 is slightly lower than previous targets:
ODA is set at SEK56 billion (US$5.5 billion) annually from 2023 to 2025, representing 0.88% of Sweden's projected GNI, falling short of the 1% target.
Sweden's key ODA focus areas include promoting Agenda 2030, poverty reduction, climate assistance, and women's rights, particularly in sexual and reproductive health and rights (SRHR) .
United Kingdom: Decreases in Bilateral ODA
The UK is expected to make reductions in key areas of its ODA:
ODA rose by 20% from 2022 to 2023, reaching GBP15.3 billion (US$18.3 billion), representing 0.58% of GNI.
Despite this increase, bilateral ODA to Least Developed Countries (LDCs) fell to 47.2% in 2023, with significant decreases in aid for health, education, and water and sanitation.
France: Major ODA Cuts
France is planning a substantial reduction in its ODA for 2025:
The draft 2025 budget includes a EUR1.3 billion (US$1.5 billion) cut, representing a 23% decrease compared to 2024. This reduction affects bilateral and multilateral funding through grants and loans.
Additionally, France is discontinuing the allocation of its Financial Transaction Tax and the Solidarity Levy on Airplane Tickets, which previously funded innovative ODA mechanisms like the Global Fund and the Green Climate Fund.
What’s Next?
European governments are facing difficult choices as they prepare their ODA budgets for 2025. While some, like Spain and Sweden, aim to increase their contributions, others, such as the Netherlands, Germany, and France, are making substantial cuts. These shifting budgets will have widespread implications for global development initiatives, forcing NGOs and international partners to adjust their strategies to align with changing priorities.
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