MEPs strike deal with Council on financial aid for Egypt

Process in Brief

MEPs and representatives of the Polish presidency of the Council reached a provisional agreement to provide Egypt with macro-financial assistance worth up to €5 billion in loans. A short-term loan of up to €1 billion was disbursed at the end of 2024 and an additional loan of up to €4 billion will now be disbursed, with a 35-year repayment period.

What Is at Stake

The support is aimed at stabilising Egypt's economy and is conditional on satisfactory implementation of the IMF programme and additional policy measures to be agreed in a memorandum between the EU and Egyptian authorities. The Commission will submit an annual report assessing economic prospects, the loans' fiscal impact and steps taken to strengthen democratic mechanisms, the rule of law and human rights.

Timeline

Before it can enter into force the agreement requires formal approval by the International Trade Committee, Parliament's plenary and the Council.

Sources

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