EU institutions agree on €4 billion in financial assistance to Egypt: The final step before the decision is adopted and implementation begins. A parliamentary session attended by the Egyptian ambassador to review bilateral relations.

Brussels: Europe and the Arabs

The European Union institutions in Brussels announced in a statement that the Council and the European Parliament have reached an agreement on the decision to grant Egypt €4 billion in total financial assistance.
In addition to the International Monetary Fund program for the period 2024-2027, this assistance will help Egypt bridge part of its external financing gap.
The EU loan will be disbursed in installments, with each installment linked to satisfactory progress in implementing the IMF program and a number of additional policy measures to be agreed upon between the European Commission and the Egyptian authorities.
The Council and the European Parliament agreed that the Commission will prepare an annual report on the progress made in implementing the economic policy and financial terms of the Memorandum of Understanding, and the steps taken by Egypt towards respecting democratic mechanisms, the rule of law, and ensuring human rights.
In addition, the text includes reporting requirements for the Commission, which will be tasked with submitting regular reports on developments related to the EU's macro-financial assistance.
According to the European statement, a copy of which we received, the agreement between the Council and European Parliament negotiators is provisional and must be confirmed by both institutions. Its formal adoption is required before the decision on the Multilateral Financing Facility (MFF) enters into force.
Following a request from Egypt in March 2024, the Commission proposed a macro-financial assistance operation for Egypt totaling €5 billion in concessional loans. The MFF was divided into two tranches, €1 billion and €4 billion, respectively.
The first loan to Egypt, worth €1 billion, approved in April 2024, was intended to cover part of its financing needs for the 2024/25 fiscal year and ensure macroeconomic stability. The second multilateral financial assistance loan, worth €4 billion, approved by the Council and the European Parliament today, will address Egypt's deteriorating macroeconomic situation and financing needs and is expected to cover Egypt's financing gap between July 2025 and June 2027. The loan will be granted on terms that enable Egypt to repay the loan over a long period, including a possible grace period.
These two operations are part of the comprehensive strategic partnership signed with Egypt on March 17, 2024, during the visit of the President of the European Commission and five other European leaders.
Just hours before the statement was released, Ambassador Ahmed Abu Zeid, Ambassador of the Arab Republic of Egypt to Belgium, the European Union, NATO, and the Grand Duchy of Luxembourg, met on Monday, the 19th, with members of the Delegation for Relations with the Mashreq Countries. This session was dedicated to reviewing Egyptian-European relations and listening to Egypt's perspective on the situation in the Middle East. According to the announcement made by the Egyptian Embassy in Brussels, the session began with a speech delivered by the Egyptian Ambassador, who reviewed the current momentum in Egyptian-European relations since the announcement of upgrading relations between the two sides to a comprehensive strategic partnership. He noted the ongoing efforts to advance this partnership across its six axes, in a way that serves the interests of the peoples on both sides of the Mediterranean. In this context, the Egyptian Ambassador emphasized the importance Egypt attaches to strengthening existing economic and investment relations with the European Union, building on the results of last year's investment conference, leveraging the positive steps Egypt has taken towards economic reform, and the promising investment opportunities available in the Egyptian market. On the other hand, Ambassador Abu Zeid addressed the challenges and crises facing the Middle East, most notably the Palestinian issue and the crises in Syria, Yemen, Sudan, and the Red Sea. He highlighted Egypt's tireless efforts to restore stability and peace in the Middle East and Africa, emphasizing the importance of continued communication and coordination between the Egyptian and European sides on all these issues, which represent a common challenge for both sides. He also highlighted the Egyptian side's interest in strengthening relations and cooperation between Egyptian and European parliamentarians, praising the important mutual visits witnessed recently between the two sides, which reflect their commitment to strengthening bridges of communication between the peoples of the region. He welcomed the upcoming visit of the delegation from the Ministry of Relations with the Levant to Egypt at the end of this month, which will represent a good opportunity to gain a close understanding of the reform and development process underway in Egypt, listen to the Egyptian side's vision on overall developments in the region, and ways to support Cairo's efforts in this area.