Egypt's parliament approves €1B MOU with EU to bolster economic support

Egypt's House of Representatives approved on Monday a memorandum of understanding (MOU) with the European Union for a €1 billion support mechanism aimed at stabilizing the Egyptian economy and supporting the public budget, as stated by the Ministry of Planning, Economic Development, and International Cooperation.

 

This funding is part of a larger €7.4 billion financial package announced during the Egyptian-European summit in March between President Abdel Fattah El-Sisi and European Commission President Ursula von der Leyen.

 

The European Union’s primary objective for this funding is to enhance Egypt's economic stability, promote investment and trade, and implement structural reforms that foster private sector growth and facilitate Egypt’s green transformation.

 

Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, affirmed that the EU’s commitment to supporting Egypt underscores the importance of fostering bilateral relations, especially given the current regional challenges.

 

She noted that the mechanism provides Egypt with long-term, low-interest financing to support the country’s budget and its capacity to implement crucial structural reforms that stimulate private sector activity and improve the overall business climate.

 

Al-Mashat also highlighted the significant reforms Egypt has undertaken in the last six months, such as the activation of the Unified Public Finance Law, strengthened social protection measures, and the implementation of energy certification regulations to support green energy initiatives.

 

Earlier in June, Egypt signed the first phase of the budget support financing, valued at €1 billion, during the Egyptian-European Investment Conference, with an agreement extending until 2027, amounting to €5 billion.

 

This collaboration will also strengthen European investments in key sectors such as renewable energy, green hydrogen, and food security.

 

The Minister further emphasized the importance of European partners in financing development programs, including the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), in promoting sustainable growth in Egypt.

Al-Mashat concluded by emphasizing that the government remains committed to expanding cooperation with European partners and strengthening partnerships within the framework of climate action, particularly through the implementation of the "NWFE" program.