The European Union (EU) is finalizing a €7.4bn aid package for Egypt, aiming to bolster the country’s finances amid regional instability, the Financial Times reported on Wednesday.
The newspaper cited concerns over the ongoing conflicts in Gaza and Sudan potentially worsening Egypt’s economic situation and fueling immigration pressures on Europe.
European Commission President Ursula von der Leyen is expected to travel to Cairo next Sunday alongside the prime ministers of Greece, Italy, and Belgium to finalize the agreement. The package reportedly includes a mix of grants and loans to be disbursed over the next three and a half years, until the end of 2027.
This news comes after Egyptian Finance Minister Mohamed Maait announced last week that Egypt is seeking to secure a total of $20bn in support from various international institutions over the coming period. This follows the recent signing of the $35bn Ras El Hekma deal and ongoing negotiations for an International Monetary Fund loan.
Maait, speaking at a press conference, highlighted the positive performance of Egypt’s state budget in the past eight months. He pointed to a significant increase in the primary surplus, exceeding EGP 193bn compared to EGP 41bn the previous year. Additionally, tax revenues during this period reportedly rose by EGP 38.3bn.
While acknowledging a rise in the overall budget deficit to 6.7% over the past eight months, Maait emphasized an increase in revenue collection. The government now awaits the first tranche of the IMF loan, with the Board of Executive Directors’ meeting date yet to be confirmed.
