The EU will provide €1 billion of urgent short-term macro-financial assistance to Egypt to help stabilise its economy. 

The aid is meant to address the deteriorating macro-fiscal situation and financing needs of the country over the recent months, notably after the outbreak of the Gaza war, the Houthi attacks in the Red Sea and the repercussions of Russia’s war of aggression against Ukraine. 

The €1 billion of short term assistance is part of a package of two proposals to provide macro-financial assistance to Egypt. The second part of the operation, still to be adopted, would provide € 4 billion over the period 2024-2027. 

The overall macro-financial assistance accompanies a revamped support programme concluded with the International Monetary Fund (IMF), of up to € 8 billion, which will be made available provided several conditions are met. 

The macro-financial assistance will be provided in the form of loans made available in one instalment. A precondition for granting the assistance is that Egypt continues to make concrete and credible steps towards respecting effective democratic mechanisms (including a multi-party parliamentary system) and the rule of law and guaranteeing respect for human rights.

Source: Council of the European Union