The European Commission has disbursed €1 billion in Macro-Financial Assistance to Egypt, marking the first instalment of a wider €4 billion package.
The payment follows the EU–Egypt Strategic and Comprehensive Partnership signed in March 2024, which includes a total of €5 billion in Macro-Financial Assistance when combined with a separate €1 billion short-term disbursement made at the end of 2024, the European External Action Service (EEAS) announced on Thursday.
Macro-Financial Assistance is EU financial support designed to help partner countries cover external financing needs and stabilise their economies.
European Commission President Ursula von der Leyen said the €1 billion payment reflected the EU’s commitment to its partnership with Egypt and cited “economic stability, democracy, sustainability, and the rule of law” as areas the funding would support.
The Commission said the funds are intended to help Egypt cover part of its financing needs and support macroeconomic stability, alongside an International Monetary Fund programme.
It said the support would help address Egypt’s balance-of-payments pressures, including those linked to Russia’s war against Ukraine, the situation in the Middle East and Houthi attacks in the Red Sea.
Conditions and reforms
Egypt met the conditions required for the disbursement, including agreed economic policy measures, steps towards respecting democratic mechanisms such as a multi-party parliamentary system, and upholding the rule of law and human rights, the Commission said.
The IMF programme remained on track, which was also required for the payment, it added.
The Commission said Egypt has carried out reforms including improvements in public financial management and the functioning of the foreign exchange market, as well as measures to enhance the business environment such as competitive bidding for industrial land allocation and streamlined online licensing.
Progress was also reported on green transition measures in areas including water management and energy.
