The European Union plans to provide Egypt with €4 billion in budgetary assistance, part of its macroeconomic support mechanism, to bolster the structural reforms currently underway in the country.
This significant financial package underscores Egypt’s increasing importance within the EU’s Southern Neighborhood Strategy and reflects a mutual desire to deepen their strategic partnership.
Following a meeting with European Commissioner for International Partnerships Joseph Sikela, Egyptian Minister of International Cooperation Rania al-Mashat announced that this aid aims to reduce Egypt’s public deficit and enhance its macroeconomic stability. Minister al-Mashat lauded the positive trajectory of bilateral relations, identifying cooperation with the EU as a “fundamental pillar” of Egypt’s sustainable development strategy. Discussions during the meeting also focused on priorities for green transition, synergies with the “Team Europe” initiative, and support for Egypt’s NWFE (Nexus of Water, Food, and Energy) program, a key component of the country’s climate adaptation efforts.
Furthermore, the European Private Investment Guarantee Facility was recognized as a strategic tool to stimulate European investment in Egypt and amplify its economic impact.
Both parties have agreed to align their priorities around critical reforms ahead of an upcoming technical assessment mission, ensuring the financing will achieve its maximum impact. This €4 billion is part of a larger €7.4 billion aid package from the EU to Egypt for 2024-2027, which includes concessional loans, additional investments, and grants. The macro-financial assistance of €4 billion specifically is designed to be disbursed in multiple tranches to support the reform agenda.
SL/te/Sf/fss/abj/APA