The European Commission plans to sign a 75 million euro package for aid to Egypt at a high-level summit with the European Union in Brussels on Wednesday, an EU official told Euronews.
The grant aims to foster socio-economic development, strengthen resilience and foster inclusive growth through improved access to health, education, water and sanitation, especially for women and youth, officials said.
Egypt played a key role in facilitating the ceasefire agreement in the Gaza Strip. Earlier this month, it also hosted an international conference aimed at implementing the first phase of peace in Gaza. US President Donald Trump also attended, along with European and Arab leaders.
The financing is part of the macro-financial framework adopted in March 2024, and is expected to result in a total investment of EUR 7.4 billion in Egypt from 2024 to 2027.
“Today’s first EU-Egypt high-level event and summit marks a new stage in our strategic and comprehensive partnership and further strengthens our cooperation on economic resilience, sustainable development and reforms,” European Commission Mediterranean Commissioner Dubravka Shuica said in a statement**.
The EU will be represented at the meeting by European Commission President Ursula von der Leyen and European Council President Antonio Costa. Egyptian President Abdel Fattah el-Sissi will also attend the meeting.
In addition to the 75 million euros in subsidies, the European Commission will also announce additional financing under the framework of 7.4 billion euros during the event, EU officials said.
Euronews contacted the Egyptian mission to the EU for further details, but did not receive a response at the time of publication.
It’s not the first time
Since March 2024, the European Union has strengthened its cooperation with Egypt, considering it a strategic partner across six key areas: political relations, economic stability, trade and investment, migration and mobility, security and demography, and human capital.
As part of this new partnership, the EU announced a support package of €7.4 billion in macro-financial support from 2024 to 2027.
Payment of installments is not automatic, as each requires the adoption of separate EU legislation. As a result, this process can be affected by political divisions and disagreements, which could potentially halt it.
In April of the same year, as part of a €7.4 billion package, the EU approved and disbursed a €1 billion short-term microfinance support loan to help Egypt address urgent economic stability challenges.
Earlier this year, EU countries and the European Parliament agreed to add another 4 billion euros under the same framework, but this has not yet been implemented.
20 years of friendship
The EU has regular relations with Egypt through the so-called ‘Council of the Union’, which first met in 2004.
This association is a joint political body, usually convened whenever there is political will, to manage bilateral relations between the EU and non-EU countries, oversee agreements, and guide political and economic cooperation.
In addition to the Association’s Board of Directors, the EU and Egypt have decided to hold a high-level meeting every two years as a sign of strengthening bilateral relations, and Wednesday’s meeting was the first of its kind.
“The EU deeply values Egypt’s stabilizing role in the Middle East region and its mediating role in the Gaza conflict. The first bilateral summit will be an excellent opportunity to further deepen our partnership, work together to address common challenges and realize the full potential of our relationship,” Prime Minister Costa said in a press release ahead of the event.
The most recent association council with Egypt was held in January 2024, at which the two countries did not formally adopt any concrete new decisions, but instead issued a political declaration commemorating the 20th anniversary of the association agreement and reaffirming their commitment to strengthen cooperation and common goals.
“Strategic” partner for human rights issues
In 2024, the EU will remain Egypt’s largest trading partner, accounting for 22% of total trade. It was Egypt’s largest export destination (26.5%) and its main import source (19.9%).
Egypt is also an important country in terms of immigration control. According to 2024 data released by the United Nations agency IOM for Immigration, Egyptian nationals account for 9% of irregular arrivals in the EU, although it is not a region with many irregular departures.
In a letter to EU leaders ahead of Thursday’s European Council meeting, European Commission President Ursula von der Leyen pledged to adopt an additional 675 euros for migration controls to Egypt, Tunisia, Libya, Morocco and Algeria to prevent departures between 2025 and 2027.
According to the United Nations Population Fund (UNFPA), Egypt’s population in 2025 is estimated to be approximately 116.3 million, with a median age of approximately 24.5 years.
Young people are trending away from Egypt due to the severe economic crisis the North African country is experiencing and the strong control of society by El-Sissi’s regime.
The EU aims to create conditions for young people to stay in Egypt through investment, but experts say the regime is contributing to Egypt’s economic stagnation.
Anthony Deworking of the European Council on Foreign Relations (ECFR) said one of Egypt’s problems is that “the military and regime-linked companies have significant control over the country’s economy, crowding out private sector investment.”
He added: “The Egyptian government has promised reforms to level the economic playing field, but progress has been slow. European leaders should emphasize that deepening cooperation depends on Egypt delivering on its commitments.”