Brussels -The European Union has identified Abdel Fattah al-Sisi’s Egypt as its most trusted partner in the Mediterranean region. “Our partnership is stronger than ever,” said Ursula von der Leyen, who, together with European Council President Antonio Costa, hosted the Egyptian leader in Brussels yesterday. Al-Sisi returned to Cairo with a EUR 4 billion soft loan, grants worth EUR 75 million, and Egypt’s association with the EU’s Horizon research program.
During the first EU-Egypt summit, three agreements were signed. They are the results of the strategic partnership signed in March 2024, a massive EUR 7.4 billion cooperation agreement, the largest ever signed by Brussels. The EUR 4 billion loan announced yesterday is actually the second tranche of the planned EUR 5 billion of macro-financial assistance. Support for the budget, which — as denounced by a part of the European Parliament a few months ago — would not include any conditions regarding possible progress on human rights and democratic standards. The first 1 billion tranche had already been approved and disbursed as a matter of urgency in December of last year.
The two partners set out in a memorandum of understanding the reforms needed for the economic stability of the North African country, which revolve around three pillars: promoting macroeconomic stability and resilience, improving the business environment, and strengthening Egypt’s competitiveness, while supporting the country’s green transition.
In addition, the EU will provide Cairo with EUR 75 million in grants to support “key initiatives aimed at addressing socio-economic challenges and promoting inclusive growth at the local level.” The initiatives will address access to quality basic services – health, education, water, and sanitation – and the strengthening of social safety nets, particularly for women and youth.
The third agreement formalizes Egypt’s association with Horizon, the EU research program. In parallel, Brussels announced other financial support operations: EUR 110.5 million to promote sustainable development, education, and skills, and the green light for major projects on migration management, financed with a EUR 200 million package.
Costa stressed the “unwavering commitment and tireless mediation efforts” made by al-Sisi to reach the Gaza ceasefire agreement. And he offered the Egyptian president the EU’s contribution, “ready to help, as it has done in the past, in recovery, reconstruction, and support for reforms.”
English version by the Translation Service of Withub
