Economy

EU signs €1 billion financing deal with Egypt as part of migration deal – Euractiv


The European Commission on Saturday (29 June) signed €1 billion in macro-financial assistance with Egypt, part of a previously agreed funding package to help Cairo pursue substantial economic reforms.

The EU-Egypt Investment Conference in Cairo was attended by European Commission President Ursula von der Leyen, Trade Commissioner Valdis Dombrovskis and Neighbourhood Commissioner Olivér Várhelyi.

Both sides signed an agreement for short-term financial assistance of up to €1 billion to support Egypt’s economic reform program, which will provide up to €5 billion in favourable loans to Cairo.

“One hundred days ago, we opened a new era in the relations between Egypt and the European Union, with our strategic and comprehensive partnership. Today, we deliver,” Von der Leyen said before the conference, adding, “And this is just the beginning.”

Von der Leyen told the conference the investment would “accompany and incentivise Egypt’s reform agenda,” which would “foster a stronger business environment and attract more investment and create more good jobs.”

As part of the overall deal, both sides signed a flurry of agreements that would cover a range of policy areas.

This included a Green Sustainable Industry program fed by a €30 million EU grant, designed to aid Egyptian industry in investing in pollution reduction, decarbonisation, energy and resource efficiency. It also included three financing agreements worth a total of €36 million.

“The €40 billion of investment agreements, if you look at the national figures of Egypt, that is four years of foreign direct investment,” Várhelyi said, adding this could “bring the golden age of EU-Egypt relationship”.

The companies in question would be looking to invest are in sectors such as hydrogen, water management construction, chemicals, shipping and aviation.

“Egypt could not only become able to supply its own electricity, but Egypt could become a serious supplier of Europe, a reliable supplier of Europe with green electricity,” Várhelyi said.

[Edited by Alice Taylor]

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