The European Commission has released €1 billion in Macro‑Financial Assistance (MFA) to Egypt, reinforcing the EU‑Egypt Strategic Comprehensive Partnership established in March 2024 and marking the first tranche of a larger €4 billion support package.
Commission President Ursula von der Leyen said on Thursday that the disbursement underscored the EU’s commitment to Cairo as a “strategic partner” and recognised Egypt’s efforts to stabilise its economy and advance structural reforms.
“Today’s €1 billion payment shows both the EU’s commitment to this partnership and Egypt’s efforts to build a stronger and greener economy,” she said.
“This funding is going where it is needed most: economic stability, democracy, sustainability, and the rule of law.”
The funding is intended to ease Egypt’s short‑term financing pressures, support macroeconomic stability and complement reforms underway through the International Monetary Fund programme.
According to the Commission’s assessment, Egypt met all conditions required for the release of funds, including progress on economic policy commitments, steps toward strengthening democratic mechanisms and maintaining its IMF programme on track.
Brussels noted improvements in public financial management, foreign‑exchange market functioning and measures aimed at boosting competitiveness, such as competitive bidding for industrial land and streamlined online licensing.
The Commission also highlighted advances in Egypt’s green transition, particularly in water management and energy.
The MFA package – part of a broader €5 billion support framework – aims to help Egypt navigate external shocks linked to the war in Ukraine, instability in the Middle East and disruptions to Red Sea shipping.
JN/APA