Macro-financial assistance
The EU and Egypt have agreed to deepen their relationship and develop 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 will cover specific areas of cooperation and its implementation will unleash the full potential of the EU-Egypt relationship.
Underpinning the partnership will be 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 will be 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, the Council adopted the short-term MFA operation based on Article 213 TFEU. The Commission’s proposal for a regular MFA operation will be considered by the Council and the European Parliament later in 2024, based on Article 212 TFEU.
- Council Decision of 12 April 2024 providing short-term MFA to Egypt
- Commission Proposal of 15 March 2024 for a Council Decision on providing short-term MFA to Egypt
- Commission Proposal of 15 March 2024 for a Decision of the European Parliament and the Council on providing MFA to Egypt
- Staff Working Document accompanying the Commission Proposals of 15 March 2024 on providing MFA to Egypt
- Joint Declaration of 17 March 2024 on the Strategic and Comprehensive Partnership between Egypt and the EU
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