Development aid: Ensure exports and jobs through German support!

Development aid: Ensure exports and jobs through German support!

In a dramatic step, the traffic light coalition decided to drastically shorten the budget for development aid! The federal government plans to reduce funds for global development cooperation in 2025 by more than eight percent. Instead of the previous 11.22 billion euros, only 10.28 billion euros are to be made available. This means a shocking reduction of 936.97 million euros - the greatest reduction in a single budget in the entire federal budget!

The effects of this decision can already be felt. A current study by the University of Göttingen, which was commissioned by the state banking group KfW, shows that every euro of German development aid causes an increase in German exports by 36 cents. In the past ten years, help has led to an annual export plus of 7.9 billion euros. This development could be seriously endangered by the cuts, which affects not only German companies, but also the 139,000 jobs that are secured by state funds in poorer countries.

Development aid as a key to export strength

The study emphasizes that higher incomes in recipient countries increase demand for German goods. The KfW director Christiane Laibach emphasizes that German development cooperation not only fights global crises, but also has positive effects for the export industry. Investments in sustainable infrastructure and climate protection are crucial to improve the market opportunities of German companies abroad.

With the planned cut, the question arises whether Germany will be able to maintain its international economic relationships. The author: Inside the study, warn that development cooperation is an important means of making German foreign trade resilient to geo -economic risks. A decline in funds could endanger future cooperation with reliable partner countries and thus undermine the stability of the German economy!