Brussels: Europe and the Arabs

The EU-Egypt Association Council will hold its eleventh meeting on Monday, June 15, in Luxembourg. According to a statement issued by the EU institutions in Brussels, building on the results of the first EU-Egypt Summit held in October 2015, the Association Council will review the implementation of the Comprehensive Strategic Partnership between the EU and Egypt, launched in March 2014, and discuss ways to strengthen bilateral cooperation.

The two sides are expected to assess progress on the six pillars of the partnership: political relations, economic stability, trade and investment, migration and mobility, security, and demographics and human capital.

This exchange will also provide an opportunity to discuss global issues of common interest and the regional situation, including developments in the Middle East and North Africa and their implications for EU-Egypt cooperation.

The meeting will be co-chaired by the High Representative of the European Union for Foreign Affairs and Security Policy, Kaja Kallas, and the Egyptian Minister of Foreign Affairs, Badr Abdel-Aty, who will head the Egyptian delegation. The European Commission is represented by Commissioner for the Mediterranean, Dubravka Šuić.

A year ago, it was announced in Brussels that on Sunday, June 15th of last year, the European Commission and the Egyptian government launched the EU-Egypt Investment Guarantee Facility for Development.

According to an official statement, this facility will attract investments for high-impact projects in areas such as clean energy, water and sanitation management, and sustainable agriculture. It will also support digital transformation and the development of small and medium-sized enterprises (SMEs).

The facility aims to mobilize investments of up to €5 billion by 2027. This includes €1.8 billion already announced as part of the comprehensive and strategic partnership between the EU and Egypt. To achieve this, the facility will draw on EU resources from the European Fund for Sustainable Development Plus (EFSD+). It will also draw on resources from European and international financial institutions that implement EU guarantees, in close coordination with Member States and the private sector. This mechanism represents a significant achievement within the framework of the comprehensive strategic partnership between the European Union and Egypt, and contributes to the EU's "Global Gateway" strategy.

The first EU-Egypt summit was held in Brussels on October 22nd. Following meetings between European Council President António Costa and European Commission President Ursula von der Leyen, representing the EU, and Egyptian President Abdel Fattah al-Sisi, the European institutions stated: "Egypt is a key strategic partner given its geographic location and its pivotal role in achieving stability in the Middle East region." A European statement on the summit quoted Council President António Costa as saying, "Our first bilateral summit was an excellent opportunity to strengthen our partnership, cooperate in addressing our shared challenges, and unlock the full potential of our relationship."

The summit focused on bilateral relations and deepening the political and economic partnership, with the aim of promoting stability, peace, and shared prosperity.

The two sides also discussed current global challenges, including the situation in the Middle East, Ukraine, multilateralism, trade, migration, and security. Regarding cooperation between the European Union and Egypt, the European statement noted that in March 2024, the EU and Egypt signed a Comprehensive Strategic Partnership Agreement (CSPA) to strengthen their relations. This partnership focuses on six key areas:

Political relations
Economic stability
Trade and investment
Migration and mobility
Security
Demographics and human capital
This comprehensive strategic partnership between the EU and Egypt is accompanied by a financial and investment package of €7.4 billion for the period 2024-2027.

Trade
The EU-Egypt Association Agreement entered into force in 2004. It establishes a free trade area between the EU and Egypt by eliminating tariffs on industrial products and facilitating trade in agricultural products.

In 2024, the EU was Egypt's largest trading partner in goods, accounting for 22% of Egypt's total trade. The value of merchandise trade between the EU and Egypt reached €32.5 billion, comprising €12.6 billion in imports and €19.9 billion in exports.