The European Commission said in a statement that the payment represents the second of three tranches under the EU’s second Macro-Financial Assistance operation for Egypt, worth a total of €4 billion.
The European Union has disbursed a new €1.5 billion financing tranche to Egypt under its Macro-Financial Assistance programme, reaffirming its support for the country’s economic reform agenda and efforts to strengthen macroeconomic stability.
The European Commission said in a statement that the payment represents the second of three tranches under the EU’s second Macro-Financial Assistance operation for Egypt, worth a total of €4 billion.
The program was proposed by the Commission in March 2024 and approved by the European Parliament and the Council of the European Union in June 2025.
The tranche was released following a positive assessment confirming that Egypt had met the required conditions, including implementing agreed economic reforms, maintaining progress under its programme with the International Monetary Fund, and fulfilling the political commitments outlined in the memorandum of understanding signed by both sides.
The EU-backed reforms aim to strengthen macroeconomic resilience, improve public financial management, enhance the business and investment environment, promote competition, and improve the governance of state-owned enterprises.
The program also supports the expansion of social protection, as well as Egypt’s green transition through reforms covering water-resource management, energy efficiency, and electricity markets.
Angelina Eichhorst, the European Union’s ambassador to Egypt, said the Macro-Financial Assistance programme is a central pillar of the EU-Egypt Strategic and Comprehensive Partnership.
She added that the programme reflects the EU’s recognition of Egypt as a strategic partner and of its pivotal role in supporting stability across the Mediterranean, the Middle East, and North Africa.
The latest payment follows the disbursement of €1 billion in short-term financial assistance in December 2024 and the release of the first €1 billion tranche under the current programme in January 2026.
With the latest disbursement, the EU’s total macro-financial assistance to Egypt has reached €3.5 billion since the launch of the strategic partnership. A final tranche of €1.5 billion is expected to be released once Egypt meets the remaining conditions.
The EU said Macro-Financial Assistance is an exceptional financing instrument designed to support partner countries facing balance-of-payments pressures. It complements Egypt’s IMF-supported programme and is intended to safeguard economic stability while advancing structural reforms that promote sustainable, inclusive, and private sector-led growth.
The EU-Egypt Strategic and Comprehensive Partnership includes a €7.4 billion financial package covering the period from 2024 to 2027. The package consists of grants, loans, and guarantees aimed at supporting economic resilience, investment, trade, the green transition, migration cooperation, and human-capital development.
Egypt and the European Union signed the Strategic and Comprehensive Partnership agreement in March 2024, elevating bilateral relations and identifying six main areas of cooperation: political relations, economic stability, trade and investment, migration and mobility, security, and human-capital development.
