EU leaders announce €7.4 billion aid package, deepen ties with Egypt, aiming to address migrant flows and bolster the economy.
Commission President Ursula von der Leyen with other EU leaders are anticipated to announce a 7.4 billion euro allocation package and upgraded ties with Egypt in Cairo on Sunday, a feature of a push to prevent migrant flows across the Mediterranean that have been criticised by rights groups.
The arrangement, which raises the European Union’s relationship with Egypt to a “strategic partnership”, is prepared to boost cooperation in scopes including renewable energy, trade, and security while providing grants, loans and other funding over the next three years to help Egypt’s faltering economy.
That offering is expected to include 5 billion euros in macro-financial grants, 1.8 billion euros of investments and 600 million euros in assistance, a senior EU commission official expressed.
The macro-financial offering includes 1 billion euros in emergency grants to be delivered this year. The remaining 4 billion euros will be subject to endorsement by the European Parliament, the official stated.
Most of the money was recently allocated and the funding was drawn up in tight cooperation with the IMF, the official told. European governments have long been concerned about the risk of fluctuation in Egypt, a country of 106 million people labouring to raise foreign currency and where economic hardship has pushed increasing numbers to migrate in recent years.
Inflation has been driving close to record highs and many Egyptians state they struggle to get by. Over the past month, however, the economic pressure on the government has reduced as Egypt has struck a record agreement for Emirati investment, raised its loan programme with the IMF, and sharply depreciated its currency.
Diplomats express Egypt’s strategic importance has been stressed by the conflict in neighbouring Sudan, which has formed the world’s biggest displacement problem, and the war in Gaza, which adjoins Egypt’s Sinai Peninsula.
Egypt has been the primary conduit for international humanitarian assistance sent to Gaza, and along with Qatar and the US has been trying to negotiate a truce between Israel and Hamas.
European Commission President Ursula von der Leyen is directing a delegation on Sunday that also includes the Italian, Greek, Austrian and Belgian prime ministers and the Cypriot president.
Egypt’s finance minister has declared the government has lined up a total of $20 billion in multilateral aid after increasing its loan and economic reform agenda with the IMF. Egyptian officials state Egypt deserves credit for hosting an estimated nine million foreign residents and essentially shutting off irregular migration from its north coast since 2016.
However, there has been a wave of Egyptians trying to cross to Europe via Libya, and the EU is already providing allocation to reduce those flows. In recent months, the Greek islands of Crete and Gavdos have witnessed a steep advancement in migrant arrivals – mostly from Egypt, Bangladesh and Pakistan – raising worry about a new smuggling route in the Mediterranean.
Activists have criticised Western backing for President Abdel Fattah al-Sisi, who came to power a decade ago after directing the overthrow of Egypt’s first democratically elected leader. Rights groups state tens of thousands of people have been imprisoned in a crackdown that has swept up dissenters from across the political spectrum.
Sisi’s supporters say security measures were required to stabilise Egypt after the disruption of the 2011 “Arab Spring” insurgency and pave the way for delivering social rights such as housing and jobs. EU pushes to offer financing in return for migration curbs in other nations including in Tunisia have run up against barriers and criticism. “The blueprint is the same as the defective EU deals with Tunisia and Mauritania: prevent migrants, ignore abuses,” Human Rights Watch stated of the plan to improve ties with Egypt and provide new financing.
