Europe is retreating from its role as a global humanitarian leader, cutting foreign aid budgets to focus on domestic priorities like economic recovery and security. This shift may address immediate concerns but undermines long-term global stability and leaves critical humanitarian crises unanswered. As Europe steps back, new powers are filling the void, creating risks for both global security and future European influence.
The Decline of Europe’s Humanitarianism
At the beginning of December 2024, the Swiss Parliament decided to cut budgets for bilateral development projects and multilateral organizations by several million francs. This reduction, amounting to around 250 million Swiss francs, was mainly redirected to the Swiss Armed Forces, which were deemed more crucial due to the shifting security situation in Europe, largely driven by Russia’s war of aggression in Ukraine. However, this decision by Switzerland is not an isolated case but part of a broader trend across Europe. In February of this year, the German government significantly reduced funds for development cooperation and humanitarian aid by nearly one billion euros compared to the previous year. Even traditionally progressive countries like Sweden cut their development aid budget by more than half in 2023. Other examples include the UK and France, which will reduce their aid budgets by 18%starting in 2025. These significant cuts seem paradoxical given the ongoing humanitarian crises in the Middle East and regions like Sudan, where there are no signs of improvement.
Austerity vs. Global Responsibility: The Price of Retreat
The reasons behind Europe’s “budgetary shift” largely stem from the crisis-prone years of the past. On one hand, the COVID-19 pandemic left many national budgets in deficit, directly impacting development aid spending, as seen in the UK’s case. On the other hand, the evolving security situation in Europe and global geopolitical instability have led many countries to prioritize reinvestment in their defense capabilities, after years of underfunding, such as in the case of the German Bundeswehr. However, this strategy is not only questionable from a normative humanitarian perspective—where Europe has historically been at the forefront—but also ill-conceived in terms of long-term global stability and security.
Seizing Opportunities in a Shifting World
While Europe has been cutting foreign aid, other global players have seized the opportunity to expand their influence in the Global South. In recent years, China has steadily increased its humanitarian spending. In fact, in terms of foreign investment, China has now surpassed the United States to become the world’s leading donor. Russia, too, remains relevant, having steadily increased its investment in official development assistance throughout the last decade, with a recent slowdown only due to its invasion of Ukraine. However, in both cases, aid is intricately tied to political and strategic interests. Humanitarian aid often serves as a soft power tool, enabling countries to strengthen alliances, shape international perceptions, and secure access to key resources. Russia’s state policy concept, for example, directly links bilateral assistance to its national interests. Meanwhile, China has long been known for attaching strict conditions to its foreign aid, using it as part of a broader image-building strategy. This strategy likely played a role in enabling the establishment of their first foreign military base in Djibouti, with the possibility of a second one emerging in Africa.
The Global South at the Crossroads of New Power Dynamics
The last decade has seen a rise in ambitions to influence the Global South, particularly from Russia and, especially, China. This shift has not gone unnoticed by other global powers, such as the United States, which is increasingly concerned about China’s growing role in the region. A notable example of this is President Biden’s recent trip to Angola, where he announced a $1 billion humanitarian aid package to address food insecurity and other urgent needs in Africa. Many view this as a direct response to China’s expanding influence on the African continent. At the same time, European states are pulling back their foreign aid budgets in a dangerous gamble. This creates a vacuum in the Global South—vacuum spaces that other powers, like China, are eager to fill to further expand their already increasing influence. This trend poses serious implications for global stability, leading to heightened competition between the US and China, and could lead to a loss of trust in European states from the Global South. Once Europe withdraws, and countries like China or Russia step in, it will be difficult for European states to regain influence in the future. This situation not only threatens global security but could also have lasting economic repercussions, leaving Europe sidelined in both humanitarian and future trade and cooperation efforts.
European governments must urgently reassess their approach to foreign aid, emphasizing its strategic potential. As defense cooperation across Europe strengthens, these frameworks should be used to align and harmonize foreign aid efforts. By coordinating aid strategies at a pan-European level, governments can maximize the impact of shrinking budgets and ensure foreign aid remains a vital tool for influence and partnership-building in the Global South.
