Policy Updates

On October 21, 2025, Sanae Takaichi was elected as Japan's first female prime minister after securing majorities in both houses of the National Diet of Japan.

Takaichi, who leads the Liberal Democratic Party (LDP), won the election in the Diet's Lower House with 237 votes against Constitutional Democratic Party of Japan leader Yoshihiko Noda, who had 149 votes. In the Upper House, she was able to capture the election through a runoff vote held after the LDP and Japan Innovation Party (JIP) formed a coalition on October 20.

Prime Minister Takaichi’s new cabinet includes former Defense Minister Minoru Kihara as Chief Cabinet Secretary and former Regional Revitalization Minister Satsuki Katayama as the first female finance minister. Other appointments include Shinjiro Koizumi, who previously led the Japanese Ministry of Agriculture, as Defense Minister and former Chief Cabinet Secretary Toshimitsu Motegi as head of the Japanese Ministry of Foreign Affairs. Despite suggestions that Takaichi would appoint a record number of women, the cabinet includes only three women including herself.

Takaichi, 64, has served in the Lower House for nearly 30 years, representing a constitutency in Nara Prefecture, and has held several ministerial roles during the administrations of Prime Ministers Shinzo Abe and Fumio Kishida.

On October 19, 2025, US President Donald Trump halted all US assistance to Colombia after Colombian President Gustavo Petro accused the US of murdering a fisherman in a Caribbean strike meant to target the transportation of illicit drugs, ending hundreds of millions of dollars in American assistance.

Colombia received an estimated US$230 million in the US budget year that ended on September 30, 2025, already a significant decline from recent years, in which Colombia typically received at least twice as much funding. Trump stated all payments and subsidies to Colombia would cease and announced he would reveal new tariffs on October 20, 2025. Colombia is the top recipient of US assistance in Latin America, with funding previously set to exceed US$400 million at the start of 2025 before earlier cuts reduced it to approximately US$100 million.

Petro rejected accusations of complicity in the illicit drug trade and defended his government's counternarcotics efforts. The Colombian Foreign Ministry described Trump's statement as a direct threat to national sovereignty.

On October 17, 2025, at the G7 Development Minister’s Meeting in Washington, D.C., US Senior Official for Foreign Assistance, Humanitarian Affairs and Religious Freedom Jeremy Lewin urged partners to prioritize efficient development programs that catalyze private investment and counter debt-trap diplomacy.

The meeting, held on the margins of the WBG and IMF Annual Meetings, focused on mobilizing private capital, reforming multilateral institutions, and increasing burden-sharing. Lewin urged partners to prioritize efficient development programs that bypass the ' NGO industrial complex,' catalyze private investment, and advance strategic imperatives, highlighting the recent US reform of its 'wayward' foreign assistance system.

Lewin underscored the importance of the G7 as a platform for US cooperation on humanitarian issues, development, and security. 

During the World Bank-IMF annual meetings on October 15, 2025, US Representative French Hill highlighted similar themes and stated that the US sought 'actual development' that stayed true to organizational mandates and produced results. He criticized perceived mission creep in multilateral institutions and stated that the US should maintain its shareholding in multilateral institutions to advance American interests and secure reforms. Hill also emphasized that 'America First' meant US leadership rather than isolation.

On October 16, 2025, following the announcement of a ceasefire in Gaza, Spain's MAEC, through AECID, launched a response plan to deliver humanitarian aid to nearly two million Gazans.

Minister of Foreign Affairs, European Union and Cooperation José Manuel Albares confirmed the aid aims to end hunger and meet the basic needs of the Gazan population. The plan's first priority is to ensure that aid prepared since March 2025 can enter the area. AECID has 12 tonnes of medicines and medical supplies, and 19 tonnes of shelter materials ready for delivery. Since October 7, 2023, AECID mobilized over EUR50 million (US$58 million) in humanitarian aid for Palestine.

In addition to working with the UN system, including UNRWA, which already received EUR19.5 million (US$23 million) from AECID in 2025, AECID will expand its support for civil society organizations. EUR850,000 (US$987,000) will be channeled to the Palestinian Red Crescent and the local NGO Al Awda. An additional EUR3 million (US$3 million) in funding for Spanish NGOs is expected to be disbursed shortly.

The effort is complemented by funds from the UN CERF, to which Spain contributed EUR4.5 million (US$5 million) in unearmarked funding in 2025. The response plan will be adapted as the situation evolves. In 2025 alone, the budget allocated to the crisis amounts to nearly EUR21.5 million (US$25 million), and the figures are expected to increase before the end of the year.

On October 13, 2025, following the declaration of a national HIV emergency in PNG in June 2025, the Australian government announced it would nearly triple its annual HIV development funding to the country to almost AUD10 million (US$6 million) for the 2025/2026 financial year.

The announcement was made by Assistant Minister for Pacific Island Affairs Nita Green during a visit to the newly renovated St Therese HIV clinic in Port Moresby. The increased funding will focus on prevention through awareness campaigns, increased testing, and expanded access to prevention measures. The support will also fund youth-led education programs and tailored services for women and girls, who are disproportionately affected by the virus.

Minister for Foreign Affairs Penny Wong stated that the support reflects the close partnership between the two countries and the need to work together to safeguard the region. The new funding complements Australia’s ongoing support for regional partners like UNAIDS, Health Equity Matters, and the Global Fund to Fight AIDS, Tuberculosis and Malaria. Minister for Pacific Island Affairs Pat Conroy and Green reiterated Australia's commitment to working with PNG to improve health outcomes and respond to the HIV situation with urgency.

On October 12, 2025, at the World Health Summit in Berlin, Germany Development Minister Reem Alabali-Radovan announced a pledge of EUR1 billion (US$1.2 billion) to the Global Fund.

Alabali-Radovan stated that the pledge demonstrates Germany's continued engagement in global health protection despite domestic budget constraints.

The contribution is part of to the Global Fund’s current replenishment round, which began in February 2025 and will conclude at the G20 summit in South Africa in late November 2025. Since its establishment in 2002, the Fund has saved an estimated 70 million lives.

Germany's pledge includes EUR100 million (US$117 million) in the form of Debt to Health Swaps, which are subject to budgetary approval.

On October 10, 2025, French President Emmanuel Macron reappointed Sébastien Lecornu as Prime Minister, four days after accepting his resignation, amidst opposition from other political parties.

Lecornu accepted the reappointment and committed to ensuring France has a budget by the end of the year. President Macron reportedly granted Lecornu full authority for negotiations with political parties and for proposing government appointments.

Following his reappointment, Lecornu was scheduled to address parliament on Tuesday, October 14, 2025, to outline his budget priorities. The address was aimed at securing support from the Socialist party to avoid losing a no-confidence vote. The far-left and far-right parties had already filed no-confidence motions, with a vote expected on Thursday, October 16, 2025. The Socialists also indicated plans to file their own no-confidence bill.

On October 7, 2025, German Federal Minister for Economic Cooperation and Development Reem Alabali Radovan announced a new, three-pronged action plan from the BMZ to restructure economic cooperation with partner countries, aiming to strengthen equitable, sustainable partnerships to secure energy supply, access critical raw materials, and attract qualified specialists.

The plan's first pillar focuses on increasing dialogue and integration by consulting with the private sector ahead of government negotiations with strategic partners and making economic cooperation a standard part of bilateral government negotiations.

The second pillar aims to reduce structural barriers for German and European companies in development cooperation tenders. This will be achieved through high-quality criteria in tendering processes, fairer competition, and better cooperation conditions, including involving companies in the project development phase of relevant investments.

The third pillar involves targeted promotion and support for German companies, with a special focus on SMEs. The BMZ will also increase its focus on critical and strategic raw materials in areas of interest for German and European companies, emphasizing socially and ecologically sustainable supply chains and a win-win approach for both Germany and its partner countries.

On October 7, 2025, the Irish government announced its Budget 2026, which includes a record EUR840 million (US$971 million) for ODA, an increase of EUR30 million (US$34 million) from the previous year.

The budget increase aims to bolster Ireland's response to global humanitarian crises, with Tánaiste Simon Harris highlighting a stronger focus on conflicts in Gaza and Sudan. The additional funding will also target child malnutrition and support healthcare and education initiatives in partner countries. Highlighting the scale of current humanitarian and development needs, Minister of State Neale Richmond TD remarked that the system designed to address these challenges is under severe threat. He indicated that the increased Irish Aid budget is a testament to Ireland’s firm resolve to work collaboratively to improve lives worldwide.

Budget 2026 will also support the opening of five new embassies and consulates in Belgrade, Chisinau, Sarajevo, Malaga, and Melbourne to support Irish citizens and business around the world and strengthen Ireland's international footprint. Additional funding has been designated to support international market diversification amid growing trade challenges, particularly by strengthening Ireland's presence in the US.

On October 6, 2025, French Prime Minister Sébastien Lecornu resigned just hours after forming his new government, making him the shortest-serving prime minister in modern French history.

The resignation occurred shortly after Lecornu unveiled a cabinet that was almost identical to his predecessor's, François Bayrou, which prompted sharp criticism from within the governing coalition. In a statement, Lecornu said that conditions were not fulfilled to carry out the functions of prime minister and denounced partisan appetites that forced his resignation.

The event extends a period of political turmoil in France that began after French President Emmanuel Macron's snap elections in the summer of 2025 resulted in a fractured parliament. Lecornu's two immediate predecessors, Bayrou and Michel Barnier, were also ousted in standoffs over a proposed austerity budget. Following the news, opposition leaders called for the dissolution of the National Assembly or Macron's resignation.