Egypt

Economic Analysis

Macro-financial assistance

On 17 March 2024, the EU and Egypt agreed to deepen their relationship via a strategic and comprehensive partnership for shared prosperity, stability and security, based on joint interest and mutual trust and building on the already existing positive agenda in EU-Egypt relations. The Strategic and Comprehensive Partnership covers specific areas of cooperation and its implementation will unleash the full potential of the EU-Egypt relationship.

Underpinning the partnership is a financial package of EUR 7.4 billion consisting of short- and longer-term support for the necessary macro-fiscal and socio-economic reform agenda. This financial package is being provided in a challenging economic situation where Egypt continues to have sizeable and unmet financing needs.

Given Egypt’s critical economic and financial situation and Egypt’s role as an important stabilising factor amid geopolitical tensions in an increasingly volatile region, the Commission proposed on 15 March 2024 to support Egypt with macro-financial assistance (MFA) of up to EUR 5 billion in loans as part of the EUR 7.4 billion financial package, divided into a short-term MFA operation of up to EUR 1 billion to be disbursed in one instalment, and a regular MFA operation of up to EUR 4 billion to be disbursed in three instalments.

On 12 April 2024, the Council adopted the short-term MFA operation based on Article 213 TFEU and on 29 June 2024, the Memorandum of Understanding setting out the agreed policy reforms underpinning the MFA operation was signed. Following the completion of all corresponding requirements, the support of EUR 1 billion was disbursed in a single instalment on 27 December 2024. On 24 June 2025, the European Parliament and the Council adopted the regular MFA operation based on Article 212 TFEU. 

Press releases

17 march 2024: Joint Declaration on the Strategic and Comprehensive Partnership between The Arab Republic Of Egypt and the European Union

Cooperation with Egypt

The European Commission conducts regular analysis on macroeconomic and financial developments in Egypt and holds regular discussions with national authorities about economic policies and developments.

• Commission staff working document accompanying the report from the Commission to the European Parliament and the Council on guarantees covered by the general budget, July 2015, pp. 39-40
• Implementation of the European Neighbourhood Policy in Egypt, March 2015, pp. 8-9
• The EU’s Southern Neighbourhood: Macroeconomic Performance and Equity, December 2014