PRESS RELEASE
Federal government reforms development policy
Further action is needed regarding realignment and financing
“Compass 2026” by Terre des Hommes and Welthungerhilfe
One year after the new German government took office, Terre des Hommes and Welthungerhilfe have published their latest report, Compass 2026, taking stock: The reform of development policy contains many relevant points, but falls short of what is needed in light of the global crises. Terre des Hommes and Welthungerhilfe welcome the German government's commitment to reform – but at the same time warn against reducing development policy to rhetoric, debates in Berlin, and short-term priorities.
“The reform of development policy must not become a Berlin bureaucratic project,” says Joshua Hofert, spokesperson for the board of Terre des Hommes . “Anyone who wants effectiveness must involve partner countries, local civil society, and young people early and in a binding manner. A credible partnership thrives on responsible action, not fine words.”
Both organizations call for a strong development policy that guides Germany toward a balanced course between global responsibility and national interests. This also includes cooperation with German businesses, from which people in partner countries also benefit.
The new figures on official development assistance (ODA) are particularly concerning. German ODA funding fell by 17 percent in real terms in 2025, and support for the least developed countries (LDCs) even declined by around a third in 2024. This puts pressure on precisely those countries that are most affected by hunger, poverty, climate crises, and conflicts, and which, according to the reform agenda, are supposed to receive more support.
“It is not credible to identify the LDCs as a priority but fail to provide them with sufficient resources. This needs to be addressed in the future. Those who promise transformation must also finance it – reliably, for the long term, and together with partners. The German government must decide whether it wants to remain a reliable partner in times of increasing challenges,” emphasizes Mathias Mogge, CEO of Welthungerhilfe.
The cuts to humanitarian aid are also cause for concern. Germany reduced its funding by 53 percent to €1.05 billion in 2025. Funding is slated to remain at the same level in 2026 – the lowest level in ten years. In a time of multiple crises, this sends a dangerous signal.
Humanitarian aid must be consistently geared towards people's needs and not, as is increasingly happening, politicized and instrumentalized. Its neutrality and independence must be preserved. The German government should also better integrate development cooperation, peacekeeping, and humanitarian aid and secure them through multi-year funding.
The Compass 2026 makes it clear: The German government must not only reform its humanitarian aid, development cooperation, and peacebuilding efforts, but also secure them politically and financially. Without genuine partnership, sufficient resources, and a clear guiding principle, the aspirations will fall short of reality.