The European Union has announced a funding package of 7.4 billion euros ($8.1 billion) and an enhanced relationship with Egypt, to address migrant flows to Europe, which have drawn criticism from rights organizations.
The agreement elevates the EU’s ties with Egypt to a “strategic partnership” and was unveiled as a delegation of leaders visited Cairo, media reported.
- The European Union has announced a funding package of 7.4 billion euros ($8.1 billion) and an enhanced relationship with Egypt.
- The initiative aims to strengthen collaboration in various sectors such as renewable energy, trade, and security.
- The proposed funding comprises 5 billion euros in concessional loans and 1.8 billion euros in investments.
The initiative aims to strengthen collaboration in various sectors such as renewable energy, trade, and security while delivering grants, loans and other funding over the next three years to support Egypt’s struggling economy.
The proposed funding comprises 5 billion euros in concessional loans and 1.8 billion euros in investments, as outlined in a summary released by the EU.
Another 600 million euros will be allocated in grants, with 200 million euros designated for migration management.
Italian Prime Minister Giorgia Meloni, who joined EU Commission President Ursula von der Leyen, along with the prime ministers of Greece, Austria and Belgium and the president of Cyprus in Cairo, stated that such agreements were crucial for addressing migratory flows.
Egypt’s economy
European governments have expressed concerns about the potential for instability in Egypt, a nation of 106 million people faced with challenges in raising foreign currency.
Economic difficulties have driven more people to consider migration, with inflation reaching near-record levels, making it difficult for many Egyptians to afford basic necessities.
However, in recent weeks, financial strain has somewhat alleviated following Egypt’s landmark investment deal with the United Arab Emirates, expansion of its program with the IMF, and significant currency devaluation.
Egypt says it has lined up a total of $20 billion in multilateral support after increasing its loan and economic reform programme with the IMF.
Most of the EU funding is newly allocated and was drawn up in close cooperation with the IMF, with 1 billion euros of the “macro-financial” loan funding to be delivered this year, a senior EU official said.
However, the approval of the remaining 4 billion euros is contingent upon the European Parliament’s endorsement, the official noted.
