In a strategic move aimed at curbing irregular migration and bolstering Egypt’s economy, the European Union (EU) has finalized a deal to provide up to €1 billion in macro-financial assistance (MFA) to Egypt. The agreement, signed during the EU-Egypt Investment Conference in Cairo, marks a significant step in their partnership.
European Commission President Ursula von der Leyen emphasized the transformative potential of this financial aid, stating, “One hundred days ago, we opened a new era in the relations between Egypt and the European Union, with our strategic and comprehensive partnership. Today, we deliver.” The €1 billion funding is intended to catalyze reforms essential for private sector growth and economic stability in Egypt.
This disbursement mirrors similar agreements Brussels has established with Tunisia, Mauritania, and Turkey to manage irregular migration flows into the EU. The EU-Egypt partnership, however, has drawn criticism from human-rights groups, labeling it as another instance of “cash for migrant control” by the EU.
The macro-financial assistance package consists of favorable loans totaling up to €5 billion, aimed at supporting Egypt’s macroeconomic stability, improving its business environment, enhancing competitiveness, and facilitating a green transition. Additionally, the EU has committed €30 million towards a Green Sustainable Industry program to assist Egyptian industries in pollution reduction and decarbonization efforts.
Further bilateral cooperation includes three financing agreements worth €36 million and a €60 million support package to enhance grain storage facilities in Egypt under the Food and Resilience Facility. Egyptian President Abdel Fattah el-Sisi hailed the agreement as a testament to Egypt’s reliability as a regional partner committed to fostering security and stability.
Pending approval by the European Parliament and the Council later this year, a second phase of MFA amounting to up to €4 billion is anticipated, underscoring the EU’s long-term commitment to supporting Egypt’s sustainable development and economic resilience.