Budget Day 2024: lower cutbacks to embassies; major retrenchment on development aid
On Budget Day the government presented the central government budget for 2025. Below are the main plans affecting the work of the Ministry of Foreign Affairs in the areas of international policy, foreign trade and development aid:
In brief
- The spending cuts to the network of Dutch embassies will be lower than originally announced by the government: 10%, instead of 22%.
- The budget increases Dutch support to Ukraine: an additional €252 million for recovery and humanitarian assistance, and €60 million for programmes including efforts to achieve justice for Ukraine.
- The NATO target of 2% of GDP will be enshrined in law, and achieved through additional spending on defence.
- The government will cut spending on development aid by €300 million.
Ministry of Foreign Affairs
The Ministry of Foreign Affairs budget for 2025 totals almost €12.3 billion. This consists of Dutch contributions to the EU and funds to be spent on security and stability, on strengthening the international legal order and for operating costs of the ministry and the missions.
Lower cuts to the network of embassies
The government will cut spending on embassies and consulates less than originally announced: 10%, instead of 22%. These missions are important for the Netherlands and for Dutch nationals abroad. For example, they help Dutch nationals who get into difficulties in other countries, and they open doors for Dutch companies doing business abroad.
NATO and the Netherlands’ security
The government will pursue a realistic foreign policy that serves the interests of the Netherlands and its people, honours our values, and defends our freedoms. Developments both within and beyond Europe – such as Russia’s war on Ukraine, terrorism and cyberattacks – can affect these freedoms and our security. For the Netherlands, NATO remains the cornerstone of the defence of its people and territory. This is why the government will comply with the NATO target and spend at least 2% of our gross domestic product each year on defence. The Netherlands will host the NATO summit in 2025, which will focus on NATO’s direct importance for our security and prosperity.
Ongoing efforts to protect human rights
A strong international legal order and respect for human rights will make the world more stable, safer, freer and more prosperous. For this reason, the government will try to spare the Human Rights Fund as much as possible when making the cuts, so as to safeguard ongoing efforts to protect the rights of women and girls, equal rights for LGBTIQ+ people, freedom of religion and belief, freedom of expression online and offline, and the protection of human rights defenders and civic space. The Netherlands is a member of the UN Human Rights Council for 2025.
Support for Ukraine
The war in Ukraine affects the security of the Netherlands and the rest of Europe. For this reason the Netherlands will continue to provide Ukraine with political, military, financial and moral support against Russian aggression. The Netherlands is also playing a leading role in achieving justice for Ukraine, for example by hosting a compensation mechanism for war damage and by advocating the establishment of a tribunal in the Netherlands to try crimes of aggression. The government will also provide support for the development of civil society and the rule of law in Ukraine and contribute to humanitarian demining. Almost €60 million has been made available for this purpose for 2025. The government is providing €252 million in support for humanitarian assistance to Ukraine, as well as for repairing vital energy and other infrastructure. This is in addition to the Dutch military support to Ukraine.
Foreign Trade and Development
Less funding for development aid
The government will cut spending on development aid next year by €300 million. This means less funding will be available for all development budget lines. The government will mainly focus on themes on which the Netherlands excels, such as food security, water management and health.
Development aid contributes to the socioeconomic development of poor countries and their peoples, and in the government’s view is also in the Netherlands’ interests. It can strengthen our trade position, prevent illegal migration and keep the Netherlands safe by contributing to stability in Europe’s neighbouring countries. The government will seek to use migration partnerships to make agreements with countries about migration and about combating human trafficking and people smuggling.
Reinette Klever, Minister for Foreign Trade and Development, will have almost €3.6 billion to spend in 2025. Besides for aid, she will use that money to support Dutch companies that do business internationally. To promote business, the government is for example earmarking an additional €100 million for the financial institution Invest International.
Foreign trade accounts for a third of the Netherlands’ income and 2.4 million Dutch jobs. The government will strengthen the Netherlands’ competitiveness, work with the EU on international trade agreements and promote bilateral trade agreements with non-EU countries.