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Baerbock reopened the mission, which had been closed since 2012 due to the Syrian civil war, on her second visit to Syria since the fall of president Bashar al-Assad over three months ago.
Baerbock stressed Germany's desire to support Syrians, working together with European partners and the United Nations to help rebuild the country.
She later met with interim President Ahmed al-Sharaa and interim Foreign Minister Assaad al-Shibani, according to the Syrian presidency.
Germany also announced €300 million ($325 million) in reconstruction aid as part of a donor conference that raised €5.8 billion in total pledges.
A German foreign ministry source confirmed the embassy would initially operate with a small diplomatic team in Damascus, with consular affairs and visas still being handled in Beirut due to Syria’s security situation.
The source also highlighted Germany's paramount interest in a stable Syria, aiming to contribute to stabilization efforts on the ground.