The Financial Times reported on Wednesday that the European Union is preparing a package worth 7.4 billion euros (approximately 8.08 billion dollars) aimed at supporting the Egyptian economy. According to the newspaper, European Commission President Ursula von der Leyen will travel to Cairo next Sunday along with the Prime Ministers of Greece, Italy, and Belgium to finalize discussions and announce an official agreement.
The proposed deal is the latest in a series of agreements by the EU with North African countries, such as Tunisia and Mauritania, aimed at avoiding economic instability in neighboring countries and curbing illegal immigration from Africa. The agreement includes support for the energy sector in Egypt, assistance in handling the increasing number of Sudanese refugees in the country, and help fortifying Egypt's borders with Libya, where people cross the Mediterranean en route to Europe, according to several EU officials familiar with the matter.
The planned package includes 7.4 billion euros (over 8 billion dollars) in grants and loans until the end of 2027. Officials stated that about 1 billion euros of the emergency financial aid for Egypt could be disbursed immediately. Another 4 billion euros in macro-financial assistance is tied to reforms under the expanded International Monetary Fund program currently under discussion, which will need the approval of EU member states. The remaining part of the package will be drawn from various funding sources of the EU.
The Financial Times quoted an official involved in the preparations as saying that the deal is "fundamental but strategically important," adding, "We are concerned about two borders - the Sudanese-Egyptian border, where Sudanese are entering the country, and the Egyptian-Libyan border, where people are entering the country. Then they exit from there."
Greek Minister of Migration Dimitris Keridis told the paper that Egypt has played a "very significant and crucial role" in managing illegal immigration to Europe, emphasizing the need for immediate support for Egypt, which is facing a "serious economic and refugee crisis." A second EU official, aware of the discussions, stated that the agreement is likely to reshape some of the existing EU support programs for Egypt, which has "long been an important partner for the bloc," according to the official.
