EU’s €1 Billion Aid Boost for Egypt’s Economy: Stabilization Efforts and Conditions

The EU has announced a €1 billion short-term financial aid loan to Egypt to stabilize its economy.

The loan is part of a larger €5 billion package, with the second part slated to provide €4 billion over 2024-2027.

However, the loan is intended to address Cairo’s financial needs following the Gaza war, Houthi attacks, and Ukraine’s war repercussions. The loan also requires Egypt to continue respecting democratic mechanisms, the rule of law, and human rights.

Egypt has agreed to an expanded $8 billion support programme with the International Monetary Fund and an 8-billion deal with the EU, aiming to boost cooperation and curb migration from north Africa.