Planning Minister, EU Mediterranean Commissioner discuss strategic partnership, economic ties

Egypt and EU Discuss Future Economic Cooperation and Funding

Minister of Planning and International Cooperation, Rania Al Mashat, met with Dubravka Šuica, the EU's Commissioner for the Mediterranean, to explore the future of economic relations between Egypt and the European Union. The meeting, which included EU Ambassador to Cairo Angelina Eichhorst and representatives from the European Investment Bank and European Commission, centered on strengthening the strategic partnership between the two entities.  

Key discussions revolved around the implementation of the second phase of the EU’s macro-financial assistance and budget support program, valued at EUR 4 billion. This follows Egypt's receipt of the initial EUR 1 billion tranche of the EUR 5 billion package in late December, with the remaining EUR 4 billion expected to be finalized by June.  

The Ministry of Planning is actively coordinating with other relevant ministries to develop programs for the broader EUR 7.4 billion financing package pledged by the EU. Al Mashat also highlighted ongoing efforts to establish an investment guarantee mechanism between Egypt and the EU. This mechanism aims to unlock EUR 1.8 billion in European investment guarantees, which are expected to mobilize approximately EUR 5 billion in investments for green transformation and other priority sectors.  

The EU's commitment to Egypt includes a EUR 7.4 billion package of loans, grants, and investments through 2027. This package comprises EUR 5 billion in concessional loans for macro-financial assistance, EUR 1.8 billion in additional investments under the Southern Neighborhood Economic and Investment Plan, and EUR 600 million in grants.  

Commissioner Šuica's first day in Egypt was marked by several significant meetings. She met with President Abdel Fattah El Sisi, Prime Minister Moustafa Madbouly, and Foreign Minister Badr Abdelatty, and also signed an EUR 90 million loan agreement with the Egyptian government to bolster Egypt's food resilience.