EU to sign €4B aid and investment deal with Egypt

The European Union will finalize 4 billion euros in new agreements and projects with Egypt next week as part of the bloc’s second financial support tranche for Cairo, EU Ambassador to Egypt Angelina Eichhorst announced on Thursday.

The deals are set to be signed during a joint summit in Brussels, where President Abdel Fattah El-Sisi is expected to attend. The funding package will be formalized under a new memorandum of understanding outlining conditions tied to macroeconomic stability and broader EU financial assistance frameworks.

In June, the European Parliament approved the final reading of legislation authorizing the 4 billion euros tranche—the second installment of a broader 7.5 billion macro-financial assistance package aimed at stabilizing Egypt’s economy amid rising debt and declining reserves.

Eichhorst said 1.8 billion euros of the funds will be coordinated with European financial institutions to attract an estimated 5 billion euros in private investment, primarily in renewable energy.

An additional 600 million euros in grants will be distributed over three years, with earmarks for technical education and sustainable development. Another 200  million euros will target migration and border management.

“The partnership between Egypt and the EU has become deeper, built on trust and shared interests,” Eichhorst said. “This summit is a chance to evaluate the progress made over the past 18 months and re-align funding priorities with Egypt’s development needs.”

She noted that joint EU funding for water infrastructure projects exceeded 200 million euros over the past five years, catalyzing an additional 500 million in co-financing. The water initiatives reached 21 governorates and positively impacted roughly 24 million residents.

Eichhorst also announced the relaunch of the EU’s PRIMA research program, which facilitates long-term scientific cooperation with 325 million euros in EU funding.