Egypt's House of Representatives approved a memorandum of understanding (MOU), Monday, regarding a macroeconomic support mechanism and budget assistance between Egypt and the European Union (EU), amounting to €1 billion, according to a statement from the Ministry of Planning, Economic Development, and International Cooperation.
This funding is part of a €7.4 billion financial package announced during the Egypt-EU summit in March, attended by President Abdel Fattah El-Sisi and European Commission President Ursula von der Leyen.
The European Union aims to use this funding to support Egypt's economic stability, enhance investment and trade, and implement structural reforms that stimulate the private sector and support green transition efforts.
Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat emphasized that the partnership between Egypt and the EU reflects Europe's commitment to supporting Egypt's economy amidst current regional challenges.
She highlighted that the funding mechanism provides long-term, affordable financing to support Egypt’s public budget, strengthening the country's ability to implement ambitious structural reforms to stimulate the private sector and improve the business environment.
Al-Mashat also pointed out that Egypt has undertaken comprehensive reforms over the past six months in cooperation with the Central Bank and key ministries, including the activation of the Unified Public Finance Law, enhancing social protection, and issuing regulations for energy certificates to support the green transition.
In June, Egypt signed the first phase of budget support financing worth €1 billion during the Egyptian-European Investment Conference, as part of a partnership that extends until 2027, with total funding reaching €5 billion.
The partnership boosts European investment in renewable energy, green hydrogen, and food security.
The minister also emphasized the importance of support from European partners in funding development programs, including the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB).
Al-Mashat concluded by affirming that the government is moving forward with its European partnerships to expand development efforts and enhance partnership within the framework of climate action, especially through the implementation of the "NWFE" program.