The European Union has announced a €7.4 billion funding package for Egypt, signaling an upgraded relationship aimed at curbing migration flows and bolstering Egypt’s struggling economy. The agreement elevates the EU’s partnership with Egypt to a “strategic” level, enhancing cooperation in renewable energy, trade, and security while providing substantial financial support over the next three years.
A delegation of European leaders, including EU Commission President Ursula von der Leyen, Italian Prime Minister Giorgia Meloni, and other senior officials, visited Cairo to unveil the deal. “Such deals are the best way to address migratory flows,” stated Prime Minister Meloni, emphasizing the importance of collaborative approaches to migration management.
The funding package comprises €5 billion in concessional loans and €1.8 billion in investments. Additionally, €600 million will be provided in grants, with €200 million dedicated specifically to managing migration. This financial assistance is designed to support Egypt’s economic reforms and address challenges such as high inflation and foreign currency shortages.
Egypt, a nation of over 106 million people, has faced economic adversity leading to an increase in migration. The EU’s investment aims to stabilize the economy and create opportunities that may reduce the impetus for individuals to migrate.
Diplomats highlight Egypt’s strategic importance, particularly in light of regional conflicts. Egypt is actively mediating in the conflict in Gaza between Israel and Hamas, working to increase the delivery of humanitarian aid. Additionally, the ongoing conflict in neighboring Sudan has contributed to a significant displacement crisis, underscoring the need for regional stability.
During a joint press conference with Egyptian President Abdel Fattah al-Sisi, Ursula von der Leyen underscored the urgency of reaching a ceasefire in Gaza. Both leaders cautioned against further escalations that could exacerbate the humanitarian situation.
The majority of the EU’s funding is newly allocated and aligns with Egypt’s expanded loan and economic reform program with the International Monetary Fund (IMF). An initial €1 billion of the macro-financial assistance is expected to be delivered this year, providing timely support to Egypt’s economy. The remaining funds are subject to approval by the European Parliament.
European authorities view this partnership as a critical step in addressing migration by tackling its root causes. By investing in Egypt’s economic development and stability, the EU aims to create a more sustainable and cooperative framework for managing migration flows.
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EU pledges billions of euros for Egypt as it seeks to curb migration
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