Europe EU Commission seals billions in aid for Egypt
The European Union and Egypt have signed a joint investment agreement worth up to one billion euros. EU Commission President Ursula von der Leyen sealed the loan on Saturday at an economic conference in Cairo. "Egypt and Europe are closer today than ever before. This partnership is a real gain for both Egypt and Europe," said von der Leyen in a speech.
29.06.2024, 17:57
SDA
The agreement applies to the first tranche of a financial package totaling 7.4 billion euros, which von der Leyen announced in March. According to the Commission, the entire package includes loans and grants. The payment that has now been agreed is the first part of a total loan of up to five billion euros.
According to the Commission, the money is to be invested in the North African country's clean energy, manufacturing and food security sectors, among others. The money will "accompany Egypt's reform agenda and create incentives", said von der Leyen. "These reforms will foster a better business environment, attract more investment and create more good jobs in Egypt."
EU Commissioner for Economic Affairs Vladis Dombrovskis and Egypt's Minister for International Cooperation, Rania al-Mashat, signed the document.
Egypt's President Abdel Fattah al-Sisi welcomed the agreement and the strategic partnership. The conference was a first step towards improving relations between the EU and Egypt and reflected their commitment to move "beyond the pledging phase to the implementation phase", al-Sisi said in his speech.
The conference was taking place at a "very sensitive time" in the midst of international and regional crises. "Egypt has proven to be a reliable partner when it comes to tackling common challenges in a way that achieves security and stability," said Egypt's president.
Egypt struggles with economic crisis
The Arab country with a population of over 100 million has been affected by the ongoing war between Israel and Hamas in the neighboring Gaza Strip. At the same time, the country itself is experiencing an economic crisis, which is manifesting itself in a currency crisis and rapidly rising inflation, among other things.
In an attempt to stabilize the economy, Egypt announced in March that the value of its weak currency would be adjusted to the real exchange rate in future. The decision led to a further devaluation of the Egyptian pound. Egypt is moving "with steady and rapid steps" to create a more sustainable economy, al-Sisi, who has been president since 2014, said on Saturday.
