EU provisionally agrees to €4bn aid for Egypt

The European Council has reached Monday a provisional agreement with the European Parliament to disburse Egypt €4 billion in macro-financial assistance (MFA).
The proposed support complements Egypt’s 2024–2027 programme with the International Monetary Fund (IMF), aiming to help bridge part of the country’s external financing gap.

Disbursement Mechanism

The EU loan will be disbursed in instalments. Each tranche will be conditional on satisfactory progress in implementing both the IMF-supported reforms and a set of additional policy measures to be agreed between the European Commission (EC) and the Egyptian authorities.
The European Council and Parliament also agreed that the EC must issue an annual report assessing Egypt’s implementation of economic and financial reforms under the Memorandum of Understanding. The report will also evaluate Egypt’s progress in upholding democratic mechanisms, the rule of law, and human rights.
The agreement includes regular reporting obligations for the EC on developments related to the EU’s macro-financial assistance to Egypt.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama