Today, the European Commission disbursed €1 billion in Macro-Financial Assistance (MFA) to Egypt, marking the first instalment of a €4 billion operation under the EU-Egypt Strategic Comprehensive Partnership signed in March 2024.
European Commission President Ursula von der Leyen emphasized that Egypt is a key strategic partner for the EU and that the funding supports economic stability, democracy, sustainability, and the rule of law. She highlighted the EU’s commitment to working with Egypt to strengthen its economy and create a more secure and prosperous Mediterranean region.
This financial support will help Egypt cover part of its ongoing financing needs, ensure macroeconomic stability, and advance reforms under its economic reform agenda in coordination with the ongoing International Monetary Fund (IMF) programme. It also addresses balance-of-payments pressures arising from Russia’s war in Ukraine, regional conflicts in the Middle East, and Houthi attacks in the Red Sea.
The Commission concluded that Egypt fulfilled all conditions required for disbursement. The country met agreed economic policy measures, made credible steps toward democratic mechanisms including a multi-party parliamentary system, upheld the rule of law, and ensured respect for human rights. Additionally, the IMF programme remained on track, as required for MFA funding.
Egypt has implemented economic reforms to strengthen macroeconomic stability and resilience, including improvements in public financial management, the functioning of the foreign exchange market, and enhancing the business environment. Measures to boost competitiveness, such as competitive bidding for industrial land and streamlined online licensing, were noted, along with progress on the green transition, including water management and energy initiatives.
The €4 billion MFA package, combined with a €1 billion short-term MFA disbursed at the end of 2024, forms part of a broader €5 billion EU-Egypt Strategic and Comprehensive Partnership. Since its signing, progress has been made across the partnership’s six pillars, and the first EU-Egypt summit in October 2025 further strengthened bilateral relations and reinforced Egypt’s status as a key strategic partner.
