European Union Humanitarian Aid Funding: Challenges and Prospects

As many European Union Member States are being forced to reduce their budgets and Official Development Assistance (ODA), humanitarian aid is suffering the direct consequences. Germany, the world’s second-largest donor after the United States, has announced a drastic reduction in its humanitarian assistance budget (-53%), while France, which had initially planned a €1 billion humanitarian aid budget for 2025, has revised it downward to €500 million in its draft finance bill, which is still under parliamentary debate ahead of a vote.

 

With a record number of people requiring assistance in crisis-affected countries, estimated at more than 300 million, these examples perfectly illustrate the worsening funding gap. Indeed, in the face of unprecedented humanitarian needs, which according to the United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA) require $49 billion to assist 187.6 million people, funding continues to decline, falling from $24.3 billion in September 2023 to just $22.48 billion during the same period in 2024. This growing disengagement by donors risks having catastrophic consequences for the world’s most vulnerable populations.

 

As the world’s third-largest humanitarian donor, the European Union does not appear to fully recognize the scale of both the increasing withdrawal of other donors and the growing humanitarian needs. For 2025, the European Commission initially proposed a budget of €1.89 billion. Although the Council of the European Union slightly increased this allocation by €30 million, the amount remains far below actual needs and the requests made by the Directorate-General for European Civil Protection and Humanitarian Aid Operations (DG ECHO). Meanwhile, the European Parliament adopted an amendment proposing an additional €120 million, bringing the total budget to more than €2 billion. On 16 November, however, a compromise was reached between the Council and Parliament, reducing Parliament’s initial ambitions: the final increase amounts to only €50 million, bringing the total budget to approximately €1.95 billion.

 

Humanitarian needs have consistently exceeded the initial budget, requiring recurring transfers from special financial instruments. To maintain its level of activity, DG ECHO requires an average of €2.42 billion per year, a figure significantly higher than its baseline budget. This shortfall is covered through reinforcements from the Emergency Aid Reserve (EAR).

 

 

Although, in practice, this reserve has so far strengthened humanitarian assistance, it may also be mobilized for other budget lines. If 2025 follows the pattern of previous years, the annual humanitarian aid budget would reach €2.52 billion, including €580 million from the Emergency Aid Reserve.

 

“In a context where Member States are reducing their spending, VOICE and its 89 members will continue to advocate for a humanitarian aid budget that matches actual needs and for the Emergency Aid Reserve to be mobilized exclusively for external crises.”

– Maria Groenewald, Director of VOICE

 

As the initial humanitarian aid budget has never exceeded the €2 billion mark, we can see the limitations of the Multiannual Financial Framework (MFF), which sets spending ceilings for each programme. Humanitarian aid is capped at €11.6 billion over a seven-year period, equivalent to an average of €1.65 billion per year. An increase in humanitarian aid funding therefore requires either increased contributions from Member States, as occurred in 2022 when the war in Ukraine prompted substantial additional funding, or a reallocation of resources toward the humanitarian aid budget line. In this context, it is difficult to envisage a significant increase in the annual budget.

 

Discussions on the next Multiannual Financial Framework (2028-2035) are now beginning within the European Commission, which is expected to present a proposal during 2025. Given the scale of current crises, it is essential to ensure an adequate financial response, in line with the Council Conclusions on measures to address the humanitarian funding gap. VOICE and its members expect the new European Commission to seize this opportunity to provide humanitarian aid with a budget commensurate with actual needs while maintaining a dedicated budget line. Humanitarian aid must remain free from political considerations and continue to be guided by the principles of humanity, impartiality, neutrality, and independence.

 

 

VOICE’s Policy Resolution, “Take a Stand: Pledge for Humanitarian Action!” calls on policymakers to support strong humanitarian action through three priorities: preserving humanitarian space, closing the humanitarian funding gap, and addressing the growing impact of conflicts and climate-related disasters.

 

The coming months will be decisive for the future of humanitarian aid funding. VOICE and its 89 members will continue their efforts to promote these messages at the highest level across all European institutions, from the European Parliament and the European Commission to the Council of the European Union, as well as directly with Member States through the actions of their members in each country.

 

Caroline Correia.