The European Union announced a €7.4 funding package and an upgraded relationship with Egypt on Sunday, part of a push to stem migrant flows to Europe criticised by rights groups.
The agreement lifted the EU’s relationship with Egypt to a “strategic partnership” and was unveiled as a delegation of leaders visited Cairo. It is designed to boost cooperation in areas including renewable energy, trade and security while delivering grants, loans, and other funding over the next three years to support Egypt’s faltering economy.
The proposed funding includes €5 billion in concessional loans and €1.8 billion euros of investments, according to a summary published by the EU. Another €600 million would be provided in grants, including 200 million euros for managing migration.
European governments have long been worried about the risk of instability in Egypt, a country of 106 million people that has been struggling to raise foreign currency and where economic adversity has pushed increasing numbers to migrate.
Egypt says it has lined up a total of $20 billion in multilateral support after increasing its loan and economic reform program with the IMF.
Most of the EU funding is newly allocated and was drawn up in close cooperation with the IMF, with €1 billion of the “macro-financial” loan funding to be delivered this year, a senior EU official said.
The remaining €4 billion are subject to approval by the European parliament, the official added.
