The European Parliament approved on Tuesday a second tranche of EUR 4 billion (EGP 219 billion) as part of the European Union’s EUR 7.4 billion (EGP 405 billion) macro-financial assistance (MFA) package for Egypt.
The vote passed with 452 members in favor, 182 against, and 40 abstentions. This follows the disbursement of an initial EUR 1 billion (EGP 52 billion) tranche in January 2025 under the same package.
The EU’s EUR 7.4 billion (EGP 405 billion) agreement with Egypt, signed in March 2024, aims to strengthen bilateral relations and support Egypt’s economy.
It includes EUR 5 billion (EGP 274 billion) in budget support, EUR 1.8 billion (EGP 99 billion) in investment guarantees, and EUR 600 million (EGP 33 billion) allocated for technical assistance, training, and capacity building.
“Given Egypt’s critical economic and financial situation and its role as an important stabilizing presence amid geopolitical tensions, the European Commission proposed to support the country… with macro-financial assistance in the form of loans worth up to EUR 5 billion,” the European Parliament stated on Tuesday.
Egypt’s Foreign Ministry welcomed the decision, describing it as a reaffirmation of the strategic partnership between Egypt and the EU.
The ministry highlighted that the move acknowledges President Abdel-Fattah El-Sisi’s efforts in promoting regional security and stability, as well as Egypt’s role as a key player in the Middle East, the Southern Mediterranean, and Africa.
The EU’s financial package is part of Egypt’s broader efforts to secure external funding amid ongoing economic challenges. In recent months, Egypt has also engaged with the International Monetary Fund (IMF) and other international partners to support economic reforms, debt management, and foreign currency reserves.
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