Under the aid package, Egypt will receive a combination of grants and loans over the next three years
The European Union (EU) has announced a substantial aid package worth 7.4 billion euros (roughly $8 billion) and an enhanced partnership with Egypt. The agreement aims to address the issue of migrant flows to Europe.
The deal was formalized during a visit by European Commission President Ursula von der Leyen, who met with leaders from Belgium, Italy, Austria, Cyprus, and Greece.
Before the signing ceremony, Egyptian President Abdel Fattah El-Sisi held separate meetings with von der Leyen and other European leaders.
Read more: $200 million World Bank project creates, maintains over 400,000 jobs in Egypt
Glad to be in Cairo to mark a new milestone in the EU-Egypt strategic partnership.
With Egypt’s political and economic weight and its strategic location in a very troubled neighbourhood,
the importance of our relations will only increase over time. pic.twitter.com/531yNW6d0e
— Ursula von der Leyen (@vonderleyen) March 17, 2024
Under the aid package, Egypt will receive a combination of grants and loans over the next three years. The EU has announced its intention to elevate its relationship with Egypt to a “strategic partnership,” recognizing it as the most populous country in the Arab world. The funding proposal includes 5 billion euros ($5.45 billion) in concessional loans and 1.8 billion euros ($1.96 billion) for investments. Additionally, 600 million euros ($654 million) will be provided in the form of grants, including 200 million euros ($218 million) specifically allocated for managing migration-related issues.
“We want a partnership on many matters ranging from trade and investment to controlling migration,” Von der Leyen said.
The office of Egyptian President Abdel Fattah el-Sisi has expressed that the agreement with the EU aims to significantly enhance cooperation and coordination between the two sides, while pursuing common interests.
Earlier this month, Egypt secured a deal with the UAE and expanded its loan program with the International Monetary Fund (IMF). Furthermore, the country devalued its currency significantly. In February, Egyptian leaders announced that the UAE would be directly investing 32 billion euros into the Egyptian economy, predominantly through a construction project at Ras al-Hikma, a Mediterranean peninsula situated near the city of Alexandria.
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