Following a protracted process, Germany finalised its federal budget for 2024 in late January, navigating through economic challenges marked by slowing growth. The resultant austerity course led to significant budget reductions, notably impacting official development assistance (ODA) and funding for peacebuilding. In relative terms, peacebuilding and other international cooperation initiatives rank as the third most affected sector in the new budget landscape. Compounding these fiscal constraints was a landmark decision by Germany’s Constitutional Court ruling against the practice of reallocating funds from earlier special Covid recovery initiatives to the 2024 budget, further exacerbating the funding shortfall. The German budget cuts come at a time when Germany and other European countries are ramping up investments in defence amid a longer trend towards militarised security and a shift away from traditional ODA and peacebuilding efforts.

This article delves into the intricacies of these budget cuts, contextualising them within broader European trends and emphasises the imperative of reassessing funding priorities amidst an escalating global risk of conflicts.