Germany will support Armenia with 152 million Euros in strategic cooperation areas until 2027. 2nd intergovernmental negotiations between Germany and Armenia successfully completed on October 31st, 2025.
Niels Annen, Head of the German delegation and State Secretary of the German Ministry for Economic Cooperation and Development (BMZ), stated: “Supporting ongoing democratic reforms and socially inclusive green economic development aligned with the Sustainable Development Goals for political stability and peace remain Germany’s overarching political objective in its cooperation with Armenia. The importance of deepening EU – Armenia partnership, and supporting Armenia’s increasing alignment with EU norms and standards, is an essential part of it. Moreover, all reform efforts have to make directly benefit the Armenian people. Only on this basis, current peace building efforts and potentially open borders can be sustainable for the Armenian society as a whole.”
Germany and Armenia agreed on the following strategic areas in the upcoming two years:
With the provision of 75 million Euros, private sector development as well as vocational education and training will be supported, especially for the benefit of micro, small and medium sized enterprises and vulnerable groups of society, with a focus on rural areas. With a new loan for Central Bank’s German Armenian Fund (GAF), MSMEs will get better access to local currency loans to modernize their enterprises and strengthen competitiveness and export chances, though as well contributing to job security and job creation. The loan will address as well women-led households, enterprises in rural areas as well as enterprises led by displaced persons. Germany will also support Armenia’s economy with green and digitally smart solutions, circular and green business models as well as strengthening entrepreneurial skills, with a focus on female entrepreneurship. Within technical and vocational training, curricula development of colleges will be strongly aligned with the needs of the private sector. This fosters prosperous job opportunities for Armenia’s young generation and will help Armenian companies with specialized staff.
Read also
With a total of 66 million Euros in loans and grants for just transition, energy efficiency and renewable energy, Germany will provide new loans via GAF for the private sector to invest in future liable energy efficiency machineries and systems, renewable energy solutions as well as battery storage systems. Germany also supports rural Armenian communities with sustainable, cost-saving and climate resilient energy solutions for public buildings and households, which will serve the immediate needs of the population.
In the framework of good governance and integrated communal development, German technical cooperation will aim with additional 5.6 million Euros at public administration reform including good financial governance, the ongoing overarching strategic reform efforts of the government and the decentralization reform, in particular strengthening the responsibility and role of rural communities and enhancing participatory budgeting. By putting Armenia’s citizens in the driver’s seat for the decision-making of their communities, funds can be allocated where the people need them most and democracy is strengthened.
Moreover, water and wastewater were an issue of strong political dialogue during the negotiations in Berlin. Germany will continue to support the water governance and draft of the regulatory framework with 4 million Euros in grants, and particularly support rural communities with adaptable wastewater solutions.
Germany remains an important partner of Armenia also with regards to the upcoming political milestones in 2026: Additional support will be provided to the Central Election Commission and civil society in order to organize free and fair parliamentary elections as well as to the government of Armenia for the #COP17 on Biodiversity in October next year.
The German delegation also comprised the German ministries of Foreign Affairs, the Ministry of Economy and Energy, the ministry of Environment, Climate Protection and Nuclear Safety, as well as the implementing partners GIZ and KfW Development Bank.
The high-ranking Armenian delegation was headed by the Minister of Economy, Gevorg Papoyan, and comprised of deputy ministers of the most important partner ministries: Territorial Administration and Infrastructure, Economy, High- Tech and Industry, Environment, Education, Labour and Social Affairs. In addition, the Office of the Prime Minister, as well as the Ministries of Finance and Foreign Affairs participated in the negotiations.
German Embassy in Armenia