Policy Updates

On June 6, 2025, the Netherlands announced it will hold a general election on October 29, 2025 following the collapse of Dutch Prime Minister Dick Schoof’s government, which resigned after losing coalition support, triggering a prolonged campaign under a caretaker administration.

The government’s fall was prompted by deep internal divisions, particularly over contentious immigration proposals. With the coalition dissolved, the cabinet will now serve in a limited capacity, overseeing only essential governance. The unusually long lead-up to the election gives political parties time to recalibrate strategies and present clear platforms.

Key campaign issues are expected to include migration, housing shortages, climate goals, and healthcare reforms. Analysts anticipate a volatile race, with public opinion still shifting after months of political instability. The election is seen as a crucial moment that may redefine the Netherlands’ domestic and international direction.

On June 4, 2025, Dutch Foreign Minister Caspar Veldkamp was assigned temporary responsibility for the Foreign Trade and Development Cooperation portfolio, following the resignation of the PVV ministers on June 3, and the formation of a caretaker government.

Until a new minister is appointed, Veldkamp will also oversee the duties previously held by outgoing minister Reinette Klever. This interim arrangement ensures continued management of foreign trade and development cooperation under the caretaker cabinet.

On June 4, 2025, Norway became the 31^st country to ratify the BBNJ —formally known as the Agreement under UNCLOS on the Conservation and Sustainable Use of Marine Biological Diversity of Areas Beyond National Jurisdiction—furthering global ocean governance efforts.

The agreement enables conserved marine protection in areas beyond national jurisdiction, which make up around two-thirds of the world’s oceans, and promotes cross-sectoral cooperation for healthier marine ecosystems.

The Norwegian Parliament unanimously approved ratification on May 26, followed by formal confirmation by the Council of State on May 27. Foreign Minister Espen Barth Eide, describing Norway’s action as proud and delighted, emphasized that strong collective engagement is essential to drive the treaty toward its required 60 ratifications.

Environmental Minister Andreas Bjelland Eriksen noted that this step supports the Kunming-Montreal Global Biodiversity Framework’s goal of protecting 30% of marine areas by 2030, and will require environmental impact assessments.

Norway also introduced new domestic legislation to align national law with the Agreement, including contributing NOK 500,000 (US$ 49,000) to a trust fund that supports developing countries’ participation in treaty implementation.

On June 2, 2025, KOICA and GOEIC signed a US$11 million agreement to create a digital platform aimed at improving trade facilitation in Egypt, entitled “Establishment of the Digital Platform for risk-based inspection and tracking to facilitate trade in Egypt,” which will run from 2025 to 2029.

The platform will streamline import cargo inspections, enhance competitiveness, and support Egypt’s digital transformation goals. Key features include risk-based inspection systems, a laboratory information management system, and a market surveillance system.

The agreement was signed in Cairo, attended by officials from KOICA, GOEIC, and Egypt’s Ministry of Planning, Economic Development, and International Cooperation. KOICA’s Deputy Country Director stated the project will foster economic growth and sustainability by modernizing inspection and customs clearance, reducing administrative barriers, and ensuring compliance with global standards.

Egypt’s Minister of Planning, Economic Development, and International Cooperation Dr. Rania Al-Mashat highlighted the project’s role in leveraging Korean grant resources to support digital transformation and inclusive development. The initiative aligns with Egypt's commitments under the WTO Trade Facilitation Agreement and aims to accelerate and simplify conformity assessment procedures at ports, helping Egypt reach international benchmarks for trade efficiency.

On June 2, 2025, AFD signed a Memorandum of Understanding with the Essam and Dalal Obaid Foundation, Louis Dreyfus Foundation, and Sawiris Foundation to pilot a climate-smart agriculture program benefiting smallholder farmers in Egypt’s Sohag and Minya governorates.

This collaboration aims to improve agricultural productivity and resilience through tailored financial tools, sustainable practices, and market access support. AFD will also contribute through technical assistance and impact evaluation, with a long-term goal of scaling the approach nationally.

On June 2, 2025, IFAD president President Álvaro Lario called on Germany’s leadership as crucial to rekindle global solidarity amid rising inequality, conflict, and climate challenges at the Hamburg Sustainability Conference, meeting with the BMZ to reinforce IFAD’s partnership with Germany, focusing on tackling hunger, poverty, and youth unemployment in rural areas, where 80% of the world’s poorest reside.

Despite increased global wealth, acute hunger has tripled since 2018, now affecting nearly 300 million people in 53 countries. Climate extremes and conflict are rising, yet development funding falls short by an estimated US$4 trillion (EUR3.7 trillion) annually. Lario urged Germany to catalyze private sector investment and help close the development gap.

Lario emphasized that investing in small-scale rural producers is a strategic move for global stability and food security, not charity. With 1.2 billion young people seeking work—90% in developing countries—agriculture and food systems could unlock over US$4.5 trillion in new business yearly and create 120 million jobs, turning migration into a choice, not a necessity.

On May 30, 2025, JICA signed the Development Policy Loan which provides JPY60 billion (US$393 million) with Bangladesh to support economic reforms and climate resilience, bolstering Bangladesh's economy amid global challenges like inflation and climate-induced disasters.

The 30-year loan, with a 2% annual interest rate and a 10-year grace period, aims to improve the business environment and governance, and implement climate measures. Co-financing includes US$600 million from the ADB and US$500 million from the World Bank.

Additionally, the Human Resource Development Scholarship Project grants JPY606 million (US$4million) to fund advanced degrees for young Bangladeshi officials in Japan, enhancing administrative capacity and bilateral ties.

On May 30, 2025, GGF and Sida have formed a partnership to expand green lending in the Western Balkans and the EU’s Eastern Neighborhood. Sida has issued an unfunded guarantee of EUR60 million (US$65million), enabling GGF to provide EUR120 million (US$130 million) in loans to private businesses and households through financial intermediaries and direct company lending.

This support targets urgent investments in decarbonization, renewable energy, and energy efficiency. The partnership marks GGF’s first risk-sharing guarantee, enhancing its ability to back green initiatives and prepare financial institutions and businesses for upcoming EU market opportunities.

GGF was initiated as a public-private partnership by EIB and KfW, with backing from the EU, Germany’s BMZ, and other international investors. Sida’s involvement bridges the investment gap in high-risk markets and complements Swedish ODA and EU programs.

This collaboration is a major milestone for green finance in Southeast Europe, the Caucasus, Middle East, and North Africa, supporting sustainable energy solutions and emissions reduction.

On May 30, 2025, officials from the US government announced the termination of a US$258 million program for HIV vaccine research at Duke University and the Scripps Research Institute.

A senior agency official stated that NIH leadership reviewed the consortia for HIV/AIDS vaccine development and immunology and decided not to support its continuation, stating that it will focus on using existing approaches to battle HIV/AIDS.

While ongoing clinical trials based on the work may continue, ending the programs indicates that no new candidates will enter trials in the future.

Public health experts have criticized that the cuts will hinder progress against HIV. Since 2010, new HIV infections have decreased steadily, but in 2023, the WHO still reported 1.3 million new cases, of which 120,000 were found in children.

On May 29, 2025, the US State Department informed Congress of an updated reorganization that would slash staff by 18%, eliminating 3,448 jobs as well as key human rights and refugee offices.

Positions eliminated include several special envoys and the undersecretary for civilian security, democracy, and human rights. Over 300 bureaus and offices will be affected, with regional bureaus taking over day-to-day decisions on foreign assistance as well as the duties of functional or thematic bureaus and offices.

The department also introduced a new Office of Natural Rights to emphasize traditional ‘Western values’ and counter perceived free speech issues in Europe and other ‘developed’ nations.

According to the organizational chart, US President Donald Trump would appoint a new Undersecretary of State for foreign assistance and humanitarian affairs, who would also oversee disaster response. The appointee would need to be approved by the Senate.