European and Egyptian officials are set to sign a significant funding package totaling 7.4 billion euros in Cairo on Sunday, as part of an effort to strengthen cooperation and address challenges, including migrant flows across the Mediterranean.
The agreement, elevating the EU-Egypt relationship to a “strategic partnership,” aims to enhance collaboration in various key areas such as renewable energy, trade, and security, while providing grants, loans, and other financial support over the next three years to bolster Egypt’s struggling economy.
Of the total funding, 5 billion euros will be allocated for macro-financial assistance, 1.8 billion euros for investments, and 600 million euros for grants, according to a senior EU commission official.
An immediate 1 billion euros in emergency funding is slated for delivery this year, with the remaining 4 billion euros pending approval by the European Parliament.
This funding initiative, developed in consultation with the IMF, comes at a critical time as European nations express concerns over potential instability in Egypt, a country of over 100 million people grappling with economic challenges.
Recent measures taken by Egypt, including securing a significant investment deal with the United Arab Emirates, expanding its IMF loan program, and devaluing its currency, have provided some relief amidst financial pressures and high inflation rates.
