EU and Egypt Sign historic Agreement for €1 Billion in Macroeconomic Support

The European Union and Egypt are set to sign a 1 billion euro ($1.07 billion) agreement aimed at supporting the macroeconomy. This funding is part of a larger €7.4 billion package that was agreed upon during the Egyptian-European summit in March. At this summit, a political declaration was signed to elevate the relationship between Egypt and the EU to the level of strategic partnership.

The initial tranche of €500 million will be accessible in the second half of the year following its signing at the Egyptian-European investment conference. This tranche is part of a mechanism to provide macroeconomic and budget support totaling €5 billion from the European Union. The remaining tranches are planned to be disbursed between 2025 and 2027, with the first tranche offering soft financing with favorable repayment terms and interest rates.

In addition to this funding, the World Bank also announced $700 million in financing on the same day to assist the Egyptian budget. This funding is part of a three-year, $6 billion development policy program aimed at increasing private sector involvement, enhancing macroeconomic and fiscal resilience, and promoting sustainable growth in Egypt.