The European Union pledges €1 billion to Egypt as short-term financial aid.
The European Union has announced that it will provide Egypt with one billion euros ($1.07 billion) as short-term financial assistance to help stabilize the country's economy.
Last month, Egypt agreed to an extensive support program worth eight billion dollars with the International Monetary Fund and struck a deal with the European Union for billions of dollars to enhance cooperation and assist in migration control, amid a long-term economic crisis linked to chronic foreign currency shortages.
The statement indicated that the one billion euro short-term aid is part of a larger package totaling 5 billion euros in the form of loans. Another 4 billion euros are set to be allocated as long-term assistance during the period 2024-2027, subject to approval by the bloc's 27 member states.
The statement highlighted that the loan aims to address Cairo's deteriorating financial situation and financial needs, especially following the outbreak of the Gaza war, the Houthi attacks in the Red Sea, and the repercussions of Russia's aggressive war on Ukraine.
It emphasized that as a precondition, Egypt must continue to take "concrete and credible steps towards respecting effective democratic mechanisms (including a multi-party parliamentary system), rule of law, and ensuring respect for human rights."
