European Union institutions have reached a provisional agreement to provide Egypt with €4 billion in macro-financial assistance (MFA), marking a significant step in a broader €5 billion support package proposed by the European Commission in March 2024.
The deal was struck between the European Parliament, the Council, and the European Commission, and now awaits formal adoption by both legislative bodies by the end of June. The funds, aimed at supporting Egypt’s economic and fiscal stability, will be disbursed in multiple instalments.
This €4 billion tranche is the second phase of the EU’s broader financial commitment to Egypt. The first phase, a €1 billion short-term MFA operation, was fully disbursed in 2024. Together, these efforts form a central component of the Strategic and Comprehensive Partnership signed between the EU and Egypt last year, which recognizes Egypt as a crucial regional partner and pillar of stability.
Following formal approval, the EU and Egypt will finalize a set of agreed economic policy reforms to guide the implementation of the aid. Additionally, Egypt will be expected to make tangible progress in strengthening democratic institutions, upholding the rule of law, and ensuring respect for human rights before any financial disbursements are made.