Commission provides €1 billion in macro-financial assistance to Egypt

Today, the European Commission disbursed €1 billion in Macro-Financial Assistance (MFA) to Egypt, an important commitment of the EU-Egypt Strategic Comprehensive Partnership signed in March 2024.

Ursula von der Leyen, President of the European Commission said: "Egypt is an important strategic partner for the European Union. Today's €1 billion payment shows both the EU's commitment to this partnership and Egypt's efforts to build a stronger and greener economy. This funding is going where it is needed most: economic stability, democracy, sustainability, and the rule of law. And as Egypt advances reforms and strengthens its economy, we continue to work together to make our shared Mediterranean home more secure and prosperous."

This financial support, the first of the expected three instalments under the ongoing €4 billion MFA operation, will help Egypt cover part of its ongoing financing needs and ensure macroeconomic stability. It will also support progress within the country's economic reform agenda in conjunction with the ongoing International Monetary Fund (IMF) programme. This support will contribute to addressing Egypt's balance-of-payments pressures, including those stemming from Russia's war of aggression against Ukraine, the situation in the Middle East and the Houthi attacks in the Red Sea.

In its assessment, the Commission concluded that Egypt fulfilled all the required conditions for the disbursement: first, Egypt met all the economic policy conditions agreed with the EU for this payment; second, the country has taken concrete and credible steps towards respecting effective democratic mechanisms, including a multi-party parliamentary system, upholding the rule of law, and ensuring respect for human rights; and third, the IMF programme remains on track as required for the disbursement of MFA funds.

As regards the economic policy conditions, Egypt has implemented economic reforms to strengthen macroeconomic stability and resilience, including improvements in the public financial management and the functioning of the foreign exchange market. Progress has also been made in enhancing the business environment and competitiveness, notably through competitive bidding for industrial land allocation and streamlined online licensing. Further progress has also been made in fostering the green transition, including in the areas of water management and energy.

Background

The Macro-Financial Assistance package, comprising this operation (€4 billion) and the short-term MFA of €1 billion disbursed at the end of 2024, is a fundamental part of the EU-Egypt Strategic and Comprehensive Partnership concluded in March 2024, totalling €5 billion in MFA support. Since it was signed, the EU and Egypt have achieved good progress on the implementation of the Partnership across its six key pillars. The first ever EU-Egypt summit in October 2025 elevated our relations with Egypt as a key and strategic partner and boosted the implementation of the partnership.

For more information

General Information on Macro-Financial Assistance

Factsheet (March 2024) on EU-Egypt Strategic and Comprehensive Partnership

Joint Declaration on the Strategic and Comprehensive Partnership between The Arab Republic of Egypt and the European Union (March 2024)

Daily News (December 2024): €1 billion short term MFA to Egypt

Press Release on the first EU-Egypt Summit (October 2025)

Quote(s)

Egypt is an important strategic partner for the European Union. Today's €1 billion payment shows both the EU's commitment to this partnership and Egypt's efforts to build a stronger and greener economy. This funding is going where it is needed most: economic stability, democracy, sustainability, and the rule of law. And as Egypt advances reforms and strengthens its economy, we continue to work together to make our shared Mediterranean home more secure and prosperous.

Ursula von der Leyen, President of the European Commission

At a time of growing geopolitical fragmentation, Egypt remains a strategic partner for the European Union. The support provided through our Macro-Financial Assistance programme underpins the strength and depth of our partnership. Today's €1 billion disbursement recognises the progress Egypt has made in implementing important reforms that will help place its economy on a more sustainable path. These efforts will make a significant contribution to strengthening Egypt's long-term economic stability and prosperity for the benefit of its people.

Valdis Dombrovskis, Commissioner for Economy and Productivity; Implementation and Simplification

Egypt is a key and strategic partner in the Mediterranean and beyond, with a strong commitment to the region's stability, security and resilience. Egypt's reforms, together with our strong partnership, are delivering tangible results, attracting major investments and benefiting its citizens. Today's €1 billion disbursement to Egypt demonstrates the EU's firm commitment to supporting the country's economic development and prosperity.

Dubravka Šuica, Commissioner for the Mediterranean