The European Union has approved a substantial €4 billion financial aid package for Egypt, marking the largest installment of a €5 billion macro-financial assistance deal aimed at reinforcing the EU’s strategic relationship with Egypt. This package is linked directly to Egypt’s National Structural Reform Program, which focuses on economic stability, private sector development, and green transition efforts. The aid was overwhelmingly approved by the European Parliament, demonstrating strong cross-party support. It follows the March 2024 strategic partnership agreement between Egypt and the EU, aiming to enhance cooperation in areas such as trade, energy, and climate action. The aid is also a result of the June 2024 Egypt-EU Investment Conference, which fostered European investment in Egypt. A significant portion of the funding will target green transition projects, aligning with both Egypt’s renewable energy and Europe’s climate goals. Beyond its financial implications, this package sends a geopolitical signal of growing strategic partnership between Egypt and the EU, with expectations for Egypt to meet its reform and green objectives.
