Commission provides €1.5 billion in macro-financial assistance to Egypt

On 24 July, the European Commission disbursed €1.5 billion in Macro-Financial Assistance (MFA) to Egypt. This is the second of the three instalments expected under the ongoing €4 billion MFA programme for the country.

This financial support will help Egypt cover part of its ongoing financing needs, preserve macroeconomic stability and support the implementation of its ongoing economic reform programme. Taking the form of concessional loans, it will also support progress with the country's economic reform agenda in conjunction with the ongoing International Monetary Fund (IMF) programme. This assistance will help ease pressure on Egypt's external finances, including due to the consequences of the current situation in the Middle East.

In its assessment, the Commission concluded that Egypt met all the conditions for this installment: it fulfilled the economic policy conditions agreed with the EU; took some concrete and credible steps towards effective democratic mechanisms, including a multi-party parliamentary system, upholding the rule of law, and ensuring respect for human rights; and kept the IMF programme on track, as required for the disbursement of MFA funds.

Regarding the economic policy conditions, Egypt has implemented economic reforms to strengthen macroeconomic stability and resilience, including improvements in public financial management and the functioning of the foreign exchange market. It has also made progress in enhancing the business environment and competitiveness, notably through strengthening state-owned enterprise governance, and advancing digitalisation of public services. Further progress has also been made in supporting the green transition, including in the areas of water management and energy.

The ongoing €4 billion MFA programme to Egypt, together with the short-term MFA of €1 billion disbursed at the end of 2024, form a fundamental part of the EU-Egypt Strategic Comprehensive Partnership concluded in March 2024, totalling €5 billion in MFA support. The first instalment of €1 billion was disbursed in January 2026. 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 relations with Egypt as a key and strategic partner and boosted the implementation of the partnership with the signature of pivotal agreements.

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