EU To Fund Egypt With Billions of Euros To Strengthen Ties

EU To Fund Egypt With Billions of Euros To Strengthen Ties

EU leaders are set to announce a €7.4 billion funding package in Cairo to strengthen ties with Egypt, aiming to address migrant flows across the Mediterranean. This agreement elevates the EU-Egypt relationship to a “strategic partnership,” focusing on renewable energy, trade, and security cooperation.

There will be €5 billion in macro-financial assistance, €1.8 billion in investments, and €600 million in grants over the next three years. Immediate emergency funding of €1 billion will be provided, with the remaining €4 billion subject to European Parliament approval.

The initiative, developed closely with the IMF, aims to alleviate Egypt’s economic challenges, exacerbated by high inflation and financial strain. Conflicts in neighbouring Sudan and Gaza highlight Egypt’s strategic importance. A delegation of prime ministers from Italy, Greece, Austria, Belgium, and Cyprus is led by European Commission President Ursula von der Leyen.

Egypt has secured $20 billion in multilateral support and has largely curbed irregular migration since 2016. However, there’s a rise in Egyptians attempting to cross via Libya, prompting EU funding to address migration. Critics question Western support for President Abdel Fattah al-Sisi, citing human rights concerns and mass incarcerations. The Human Rights Watch organization criticises the plan for being flawed and neglectful of abuses.