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Germany is stepping forward with humanitarian aid and plans to co-host a major donor conference, but is carefully calibrating its long-term commitment to Gaza’s reconstruction and the ongoing debate over arms exports to Israel following a recently signed ceasefire agreement.
On Monday, German Chancellor Friedrich Merz participated in a meeting with approximately 20 heads of state and government in Shark El-Sheikh, Egypt, for the signing of a 20-point plan between Israel and Hamas. The visit, which included a photo opportunity with US President Donald Trump, served as a platform for outlining Germany’s potential role in the next phase of the peace process – a role still largely defined by uncertainty.
Initial Humanitarian Response & Reconstruction Funds
Berlin has already committed €29 million (approximately $33.8 million) for immediate humanitarian assistance to Gaza, acknowledging the scale of devastation and the dire conditions facing the population. However, officials concede this is a modest sum given the widespread destruction and famine-like conditions resulting from a prolonged blockade.
Federal Development Minister Reem Alabali Radovan indicated on Sunday that Germany is prepared to allocate a nine-figure sum for reconstruction efforts. These funds will largely be sourced from development aid previously earmarked for Palestinian territories, which was temporarily suspended after the October 7, 2023, Hamas attack. While a precise figure remains undisclosed, the government has initially approved funding for 50 temporary housing units capable of accommodating around 350 people.
The need is immense. As of October 2023, nearly all of Gaza’s 2.3 million residents had been displaced multiple times. Tragically, health officials in Gaza report at least 68,000 fatalities as of October 15, 2025, with experts suggesting the actual death toll could be significantly higher. United Nations assessments from October 2025 reveal that 92% of residential buildings in Gaza have sustained severe damage or complete destruction.
Donor Conference & Egypt’s Reconstruction Plan
Germany, in partnership with Egypt, is set to host a donor conference for Gaza in the coming weeks, likely in Cairo. This conference gains added importance given the US decision not to contribute financially to the rebuilding efforts. Egyptian President Abdel Fattah el-Sisi recently presented a comprehensive plan for rebuilding Gaza’s coastline, estimated to cost around $53 billion. While numerous Arab and European nations have signaled their intent to contribute, the absence of US funding underscores the critical need for a successful donor conference.
The Debate Over Arms Exports to Israel
The ceasefire has also reignited a contentious debate within Germany regarding arms shipments to Israel. In August, facing mounting public pressure amid rising civilian casualties in Gaza, Chancellor Merz agreed to halt approvals for some new military equipment deliveries. However, exports of weaponry components and military matériel have continued.
Calls are now growing within Merz’s own political bloc for a complete resumption of arms exports. Steffen Bilger, a member of the center-right Christian Democrats (CDU), argued that a successful implementation of the ceasefire warrants a return to full deliveries.
The sentiment was even stronger from the CSU, the CDU’s Bavarian sister party. CSU leader Markus Söder urged Merz to authorize all exports, with CSU parliamentary leader Alexander Hoffmann stating to the Bild newspaper, “The sanctions must be lifted, the delivery restrictions must be lifted, the travel warning must be lifted — and all of this must happen immediately.”
However, Chancellor Merz has adopted a cautious approach. He emphasized the need for greater clarity regarding the proposed international coalition responsible for maintaining interim control of Gaza before making any significant decisions. “I don’t want to be sitting in the same room in six months’ time and have to ask ourselves, ‘What went wrong?’ That must not happen,” Merz stated on Tuesday, signaling a commitment to a measured and deliberate response.
