Egypt receives €1 billion EU aid package to boost economy
As part of its continued support for Egypt’s dwindling economy Egypt’s economy in decades, the European Union has announced an aid package of €1 billion.
This latest financial injection is part of a larger €5 billion loan package earmarked for Egypt.
The European Commission said in a statement on Friday that the remaining €4 billion is scheduled for disbursement between 2024 and 2027, pending approval from the 27 EU member states.
According to the statement, the aid is targeted at addressing the deteriorating macro-fiscal situation and financing needs in Cairo, particularly regarding the Gaza conflict, Houthi attacks in the Red Sea, and the fallout from Russia’s aggression against Ukraine.
The European Commission emphasized that the assistance will be provided in the form of loans in a single instalment, while also conditioning Egypt to continue demonstrating progress towards upholding democratic principles, including the establishment of effective democratic mechanisms and the protection of human rights.
This latest development follows the visit of European Commission President Ursula von der Leyen to Cairo in March, during which an aid package of €7.4 billion was pledged.
These funds, to be disbursed over three years, are designated for various sectors, including economic and trade relations, energy, and immigration.
