Germany is to provide 1 million euros (1.4 million dollars) to assist refugees in Libya and its bordering countries, Foreign Minister Westerwelle said Wednesday, dpa repoted.
Half of the amount is to go to the International Red Cross and the UN High Commissioner for Refugees, to help them provide medical and humanitarian aid.
More than 140,000 refugees are estimated to have amassed on Libya's borders with Tunisia and Egypt, threatening a humanitarian crisis.
"These people must be helped," said Westerwelle, who called upon the European Union to act quickly and decisively.
The EU has already agreed to more than triple its humanitarian aid for Libyan refugees - to 10 million euros, European Commission President Jose Manuel Barroso said in Brussels earlier.
Westerwelle called for an increase in international pressure on Libya, but stressed that any military operation would have to be discussed with the "necessary care and restraint."
"Discussions about military options can be counterproductive," Westerwelle said.
He said it was important to monitor reactions in the rest of the Arab world and avoid encouraging any propaganda suggesting that the unrest in North Africa was directed by western states.