EU Approves EUR 4 Billion Economic Support Package for Egypt

The European Union has formally approved an economic support package worth EUR 4 billion for Egypt, to be delivered between 2024 and 2027. The funding was ratified during a session of the European Commission in Brussels, and forms part of a broader EU-Egypt strategic partnership agreement signed in March 2024.

The package includes EUR 1 billion in macro-financial assistance loans, alongside EUR 3 billion in grants allocated to address economic stabilisation, sustainable development, and migration management. The macro-financial assistance component is designed to help Egypt mitigate the effects of global economic shocks, including inflation and foreign currency shortages, while the grants are tied to reforms and projects in areas such as education, job creation, and climate resilience.

According to EU statements, the macro-financial assistance programme will be subject to conditions relating to governance, transparency, and cooperation with the International Monetary Fund, with disbursements scheduled in tranches following policy benchmarks.

The agreement comes amid ongoing reforms in Egypt to liberalise its economy, attract foreign investment, and stabilise its currency markets. It also coincides with wider EU efforts to manage migration flows through partnerships with countries of origin and transit.

Further implementation details are expected to be released as the disbursement phases begin.