EU Announces €75 Million Support Package for Egypt Today

URGENT UPDATE: The European Union is set to announce a significant financial support package of €75 million for Egypt during a high-level summit in Brussels scheduled for Wednesday, October 25, 2023. This funding aims to bolster socio-economic development amidst ongoing human rights concerns, marking a pivotal moment in EU-Egypt relations.

The announcement comes as Egypt plays a crucial role in regional stability, recently facilitating a ceasefire agreement in Gaza and hosting an international conference aimed at peace implementation. The EU’s commitment is part of a broader macro-financial framework established in March 2024, which outlines a total investment of €7.4 billion in Egypt over the next four years.

During the summit, European Commission President Ursula von der Leyen and European Council President António Costa will meet with Egyptian President Abdel Fattah el-Sisi to discuss cooperative strategies for economic resilience, sustainable development, and essential reforms. The funding package will focus on enhancing access to health, education, and sanitation, particularly for women and youth.

As part of the €7.4 billion framework, additional loans are expected to be announced, indicating a robust financial commitment to Egypt despite potential political hurdles. The EU has underscored its strategic partnership with Egypt, which has been a key player in addressing migration challenges and economic stability in the region.

“Today’s first EU–Egypt High-Level event and Summit marks a new phase of our Strategic and Comprehensive Partnership,” said Dubravka Šuica, European Commissioner for the Mediterranean. This meeting is anticipated to deepen bilateral ties and address shared challenges.

Since March 2024, the EU has increased its cooperation with Egypt, recognizing its role in political relations, trade, and security. The latest package follows a previous €1 billion micro-financial assistance loan aimed at urgent economic stabilization. However, the disbursement of these funds is contingent upon compliance with EU legislative requirements, which have been historically influenced by political dynamics.

The EU is also responding to the pressing migration situation, with plans to allocate an additional €675 million for migration management in Egypt, Tunisia, Libya, Morocco, and Algeria between 2025 and 2027. The urgency of these developments emphasizes the EU’s commitment to fostering stability in a region facing significant socio-economic challenges.

However, experts warn that deepening cooperation hinges on Egypt’s commitment to enacting promised reforms. The dominance of military and regime-linked firms in Egypt’s economy has been cited as a barrier to private sector investment and economic growth.

As the summit unfolds, attention will be on whether the EU can effectively leverage its financial support to encourage meaningful change in Egypt, where a significant portion of the population is young and increasingly seeking opportunities abroad due to the ongoing economic crisis.

Stay tuned for live updates as this critical summit progresses, and share this urgent news with those who need to stay informed about developments in EU-Egypt relations.