Dáil Éireann Debate, Thursday - 27 November 2025
20. Deputy Donnchadh Ó Laoghaire asked the Minister for Foreign Affairs and Trade for an update on the significant crisis in relation to overseas development aid, that is being caused by the huge cut in USAID; and whether the issue of debt held by third world countries is being discussed at EU level. [66752/25]
Amharc ar fhreagraThe global environment for development cooperation changed dramatically in 2025, and this uncertainty will continue into 2026. The OECD’s Development Assistance Committee projects a 9 to 17 percent drop in overall development assistance in 2025, on top of a nine percent decline in 2024. By 2027, it is expects that development assistance will fall to levels last seen in 2020.
While the biggest single shock has been the closure of USAID, twelve other developed countries have publicly announced cuts in their ODA for the coming years. These will have a disproportionate impact on the humanitarian, health, and education sectors, with least developed countries and sub-Saharan Africa particularly impacted.
Amidst this uncertain outlook for global development cooperation, the Government remains clear on our commitments, to reducing humanitarian need, and to reaching the furthest behind first. The Government will continue to work towards the target of providing 0.7 percent of Gross National Income as ODA. Budget 2026 provided for an increase of €30 million in funding for the international development programme, Irish Aid, managed by the Department of Foreign Affairs and Trade. This will enable us to increase support for the crises in Gaza and in Sudan, for instance. However, we need to acknowledge that it will not be feasible for Ireland, or any other single donor, to fill the major funding gaps caused by the ODA reductions by others.
On debt, we recognise that a country’s ability to borrow is essential to enabling investment in sustainable development. Growing debt servicing costs continue to constrain the fiscal space of many developing countries. This potentially translates into reductions in expenditure on health, education, and social protection.
At EU level, it is agreed that we must address the persistent debt challenge many countries face and work to lower the cost of borrowing. Ireland is supportive of all initiatives that assist countries with debt issues. These include the G20 Common Framework for Debt Treatments and the Paris Club and we continue to call, where appropriate, for reform and improvements.
