Parliament Approves 1st Tranche of EUR 7.4 Billion Aid Package From EU
The package is part of a strategic partnership between Egypt and the EU to support economic development and reform.
Egypt’s parliament approved the first installment of EUR 1 billion from the EU’s EUR 7.4 billion financial aid package, which was announced last spring as part of a strategic partnership agreement to support the country’s development and macroeconomic reform.
In June 2024, Minister of Planning Rania Al-Mashat signed the first phase of the Macro-Economic Support Mechanism and Budget Support (MFA) with Valdis Dombrovskis, the EU’s executive vice-president.
Over the past six months, the government - in coordination with key institutions like the Central Bank and several ministries - has made progress on several reforms under the structural reform program. These include the electronic calculation of payroll taxes, the activation of the Unified Public Finance Law to set annual debt limits, the expansion of social protection networks, and a Cabinet decision to review tax exemptions granted to state-owned companies.
