Ahmed Kamel – Egypt Daily News
Egypt has urged the European Union to speed up the disbursement of a €4 billion financial support tranche as the escalating regional conflict involving Israel, Iran, and the United States begins to weigh heavily on the country’s economy.
During a phone call on Friday, Egyptian Foreign Minister Badr Abdelatty pressed the EU’s top diplomat, Kaja Kallas, to accelerate the release of the second tranche of a broader European support package designed to help Egypt navigate mounting economic pressures.
According to a statement issued by the Egyptian Ministry of Foreign Affairs, Abdelatty warned that the ongoing military escalation in the region following coordinated U.S.-Israeli strikes on Iran is intensifying economic challenges for Egypt.
He cited a surge in global energy and food prices, rising maritime insurance premiums, and disruptions to shipping routes as key factors placing additional strain on the Egyptian economy.
The requested funds are part of a €7.4 billion financial support package agreed between Egypt and the European Union in March 2024. The initiative was designed to help Cairo cope with multiple external shocks, including the economic impact of the war in Gaza and lingering global pressures linked to the war in Ukraine.
The EU released the first €1 billion tranche in January 2026 to ease Egypt’s short-term financing needs and create fiscal space for social spending. The second tranche, valued at €4 billion, is expected to be delivered in three installments extending through 2027.
Egyptian officials argue that accelerating the next phase of funding has become increasingly urgent as the conflict between Israel and Iran expands across the region, threatening energy markets and trade flows that are vital to Egypt’s economic stability.
During the call, Abdelatty and Kallas also discussed diplomatic efforts to contain the rapidly escalating conflict. Both sides emphasized the need for urgent international action to halt the war and prevent further regional destabilization.
They called for the development of concrete proposals and a practical diplomatic framework aimed at ending the fighting and reducing the risk of a wider regional confrontation.
The two officials also stressed the importance of continued coordination between Egypt and the European Union to support de-escalation efforts and advance political solutions to the crisis.
According to the foreign ministry statement, both Cairo and Brussels condemned recent Iranian attacks targeting Arab states in the region, including strikes aimed at U.S. military bases carried out in retaliation for U.S.-Israeli operations against Iran.
Despite the escalating hostilities, both sides reiterated that diplomacy remains the only viable path to prevent the Middle East from sliding into deeper instability and to safeguard regional and international peace and security.
