Brussels Disburses 1.5 Billion Euros in Aid to Egypt

The European Commission has disbursed 1.5 billion euros to Egypt, marking the second tranche of a 4 billion euro macro-financial assistance (MFA) package. This disbursement is a key component of the global strategic partnership agreed upon by the EU and Egypt in March 2024, and is contingent on Cairo's adherence to a reform agenda established in October 2025.

According to the Commission, Egypt has made "concrete and credible steps" toward effective democratic mechanisms, including a multi-party parliamentary system, respect for the rule of law, and the guarantee of human rights. These advancements align with Egypt's ongoing program with the International Monetary Fund (IMF), a condition for the MFA funds. The aid is intended to assist Egypt in meeting its current financing needs and bolstering macroeconomic stability.

The Commission further noted Egypt's implementation of economic reforms aimed at enhancing macroeconomic stability and resilience. These include improvements in public finance management and the functioning of the foreign exchange market. Progress has also been made in improving the business environment and competitiveness, particularly through enhanced governance of state-owned enterprises and digitalization of public services. Additionally, Egypt has advanced its green transition efforts, with developments in water management and energy sectors.

This 1.5 billion euro disbursement follows an initial 1 billion euro payment made in January. At that time, Brussels indicated the aid would help Egypt address balance of payment pressures exacerbated by the war in Ukraine, the situation in the Middle East, and Houthi attacks in the Red Sea.