On Wednesday, Parliament approved a provisional agreement with the Council on a macro-financial assistance package for Egypt worth €4 billion. A short-term loan of up to €1 billion had already been disbursed at the end of 2024. An additional loan of up to €4 billion will now be provided, with Egypt having 35 years to repay these loans.
The release of funds is contingent upon Egypt’s satisfactory implementation of the International Monetary Fund (IMF) program and other policy measures that will be outlined in a memorandum between the EU and Egyptian authorities.
The Commission will submit an annual report to Parliament and the Council, examining progress made, assessing Egypt’s economic prospects, and evaluating the impact of these loans on Egypt’s economic and fiscal situation. The report will also review steps taken to strengthen democratic mechanisms, uphold the rule of law, and protect human rights in Egypt.
The agreement was approved by 386 votes in favor, 132 against, with 49 abstentions.
Parliament’s rapporteur Céline Imart (EPP, FR) stated: “Parliament’s backing for this EU loan reflects its high regard for Egypt as a partner country. By helping Egypt, we are also looking after EU interests in an unstable region.”
With its macro-financial assistance initiatives, the EU supports partner countries facing financial, economic, and societal challenges while aiding them with structural political and economic reforms.
