On Friday, April 12, the EU announced it would provide Egypt with a financial aid package exceeding $1 billion to assist in stabilizing its economy.
This funding is a component of a larger 5 billion euro loan package.
Another phase of this initiative, yet to be finalized, aims to allocate €4 billion between 2024 and 2027.
The primary objective of this loan is to help Egypt navigate its challenging fiscal landscape and meet its financial obligations, especially following events like the Gaza conflict, Houthi attacks in the Red Sea, and the consequences of the Ukrainian war.
A prerequisite for this assistance is Egypt’s commitment to making tangible progress in upholding democratic institutions, such as a multi-party parliamentary system, adhering to the rule of law, and ensuring human rights are respected.
Last month, Egypt also entered into an expanded $8 billion support agreement with the International Monetary Fund and an additional €8 billion deal with the EU.
The March-announced financial package aims to enhance collaboration and mitigate migration from North Africa.