6 months Ago
Reformatorisch Dagblad calculated that the government is also sneaking the aid budget cut of a further €2.6 billion behind the scenes by connecting the budget to economic growth, a new formula that deviates from international standards. The chain said that the Ministry of Foreign Affairs had blocked full disclosure, leading to private analysis.
Deviation from International Aid Standards
For years the Netherlands did so the international standard of 0.7% of GNI in development country assistance. But the current government abolished that last year and imposed a new, growth-based formula for setting the aid budget.
While the Cabinet eventually succumbed to Senate pressure to be tied back in to economic growth from 2026, the new method is expected to provide much lower budget increases than the 0.7% rule. For example, while the model by the predecessor would have left taxpayers with €800m of additional payments per year from 2026 to 2029, this model will increase that type of bill by about €200m per year.
Freeze Budget, Reduce Over Long Term
The budget for development aid will not increase at all in 2025, adding to the long-term cuts. Overall, the budget will be €2.6 billion less in 2029 due to the recalculation—even on top of the already confirmed €2.4 billion in direct cuts. This ultimately amounts to a joint fall of around €5bn.
The decision represents a significant change in the role that the Netherlands plays, and the level of funds it provides, for global development work, and has been met with dismay from critics of the country's retrenchment from international solidarity and responsibility.
