EU Pledges €4 Billion Boost to Revitalize Egypt's Economy

Egypt will soon sign a memorandum of understanding with the European Union, finalizing €4 billion in financing as part of a larger €7.4 billion package. This funding aims to aid Egypt's economic recovery and curb migration, with a €1 billion tranche already received in January.

Egypt is on the verge of signing a pivotal memorandum of understanding with the European Union, marking the release of €4 billion in financing. This package is part of a larger €7.4 billion deal forged in March last year, designed to rejuvenate Egypt's faltering economy and manage migration flows across the Mediterranean.

Planning Minister Rania al-Mashat revealed in a press briefing that discussions have been underway with EU members since March, with formal adoption expected by June. In January, Egypt received the initial €1 billion installment. However, the remaining €5 billion, designated for macro-financial assistance, still requires approval from the European Parliament.

This substantial financial commitment by the EU arrives as Egypt confronts economic challenges exacerbated by geopolitical conflicts, including the Gaza war and instability from the Ukraine conflict. Additionally, Egypt has bolstered its economic strategies through significant investment agreements with the UAE and has expanded its IMF programme to $8 billion.

(With inputs from agencies.)