Ahmed Kamel – Egypt Daily News
Egypt’s Ministry of Planning, Economic Development, and International Cooperation announced that two delegations from the European Commission have arrived in Cairo to review progress on the Macro-Financial Assistance (MFA) mechanism and discuss new development grant programs. The meetings are part of the ongoing implementation of the Egypt–European Union Strategic Partnership, following the signing of the second phase of the MFA agreement during the Egypt–EU Summit in Brussels, co-chaired by President Abdel Fattah El-Sisi and European Commission President Ursula von der Leyen.
Between November 10 and 12, a high-level mission from the European Commission’s Directorate-General for Economic and Financial Affairs is holding technical meetings with relevant Egyptian ministries to discuss reforms and procedures tied to the disbursement of the first tranche of the second phase of the MFA program, valued at €1 billion.
Minister of Planning and International Cooperation Dr. Rania Al-Mashat emphasized Egypt’s commitment to closely following up on the strategic partnership with the EU, describing it as “a cornerstone for advancing mutual interests and supporting Egypt’s ongoing economic reform agenda.” She noted that the partnership strengthens the country’s resilience amid global economic fluctuations.
€4 Billion in Second-Phase Support
Dr. Al-Mashat explained that the Macro-Financial Assistance and Budget Support mechanism forms part of a broader partnership framework encompassing trade, investment, and macroeconomic resilience. The second phase of the MFA program totaling €4 billion was developed after extensive coordination between Egyptian institutions and the European Commission throughout the year.
The new phase is anchored in a structural reform matrix comprising 87 specific reforms under Egypt’s National Structural Reform Program. These reforms are designed to enhance competitiveness, stimulate private sector growth, and promote fiscal sustainability.
€600 Million in Development Grants for 2026–2027
Simultaneously, from November 9 to 13, the ministry is holding consultations with a delegation from the European Commission’s Directorate-General for Neighbourhood and Enlargement Negotiations (DG NEAR) to set priorities for allocating development grants worth €600 million for the 2026–2027 period. These grants fall under the broader Egypt–EU strategic cooperation framework, which spans sustainable development, governance, and human capital investment.
As part of the development cooperation agenda, Egypt and the EU recently signed a €75 million financing agreement for the “EU Support Programme for Implementing Social and Economic Reforms at the Local Level.” The project is funded through the EU’s Neighbourhood, Development and International Cooperation Instrument (NDICI – Global Europe).
In addition, the EU has announced a new financial package worth €110.5 million for 2025 to advance sustainable development, strengthen economic governance, and expand technical and vocational training initiatives aimed at preparing Egypt’s workforce for future labor market needs.
€7.4 Billion Support Package Through 2027
The EU’s total support for Egypt under the strategic partnership framework for 2024–2027 amounts to €7.4 billion. This includes €5 billion in concessional finance under the MFA and budget support mechanism, €1.8 billion in investment guarantees, and €600 million in development grants.
Officials from both sides have highlighted “significant progress” in activating joint projects and policy coordination since the October Egypt–EU Summit, describing the collaboration as a model for balanced partnership that promotes shared stability and sustainable growth.
“The partnership with the European Union continues to evolve into a long-term framework that supports Egypt’s reform priorities while contributing to regional stability,” Minister Al-Mashat said, underscoring that cooperation now extends beyond economic aid to strategic investment, technology transfer, and human capital development.
