The European Parliament approved on April 1 a €4 billion (EGP 228.4 billion) second tranche of a larger €7.4 billion macro-financial assistance (MFA) package for Egypt.
EU support to Egypt
The vote passed with broad support, garnering 452 members in favour, 182 against, and 40 abstentions, according to a statement by the European Parliament.
The latest approval follows the disbursement of an initial €1 billion tranche received in January 2025 under the same MFA package.
The €5 billion MFA package—proposed by the European Commission — is part of the €7.4 billion agreement signed on March 17, 2024, between Egypt and the 27-state bloc to upgrade the bilateral relations to a strategic partnership.
Under the deal, Egypt is set to receive €7.4 billion in EU funding through 2027, including €5 billion in budget support, €1.8 billion in investment guarantees, and around €600 million for technical assistance, training and capacity building.
Amid Egypt’s ongoing economic challenges and its strategic role in regional stability, the European Commission has proposed providing the country with up to €5 billion in macro-financial assistance in the form of loans, the EU Parliament announced on Tuesday.
In response, Egypt’s Foreign Ministry welcomed the decision, calling it a “clear sign” of the deepening strategic partnership agreed upon between Cairo and Brussels in March 2024.
The disbursement of the new tranche is pending a series of final procedural steps within the European Union, which are expected to take a few weeks.
Other loans
Earlier in March, the European External Action Service (EEAS) announced that Egypt would receive a €90 million ($94.3 million) loan from the European Union (EU) and the European Investment Bank as part of the Egypt Food Resilience Project.
This funding is intended to bolster Egypt’s food security through wheat purchases, further strengthening the ongoing cooperation between Egypt and the EU in tackling economic and social challenges.
According to Gelsomina Vigliotti, European Investment Bank Vice President, “This investment tackles a key bottleneck for more efficient and resilient food supply in Egypt. The new silos and improved logistics will help reduce food losses, strengthen food security and improve affordability of bread for millions of Egyptians.”
