Al Mashat Holds Discussion Session with European Commissioners for the Mediterranean and International Partnerships

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, met with Ms. Dubravka Šuica, European Commissioner for the Mediterranean, and Mr. Jozef Síkela, European Commissioner for International Partnerships, to discuss avenues for cooperation and the partnership framework with the European Union. This was during her participation in the Global Gateway Forum 2025, organized by the European Union in the Belgian capital, Brussels, from October 8 to 10, with high-level participation from government leaders, representatives of international financing institutions, and development partners from around the world.

The meetings discussed the strategic relations between Egypt and the European Union, developments in the Middle East, and ongoing efforts to achieve peace and stop the war in Gaza. In this regard, the European side emphasized the importance of Egypt's pivotal role and the efforts undertaken by His Excellency President Abdel Fattah El-Sisi to achieve stability and lay the foundations for security in the region.

Dr. Rania Al-Mashat also reviewed developments in the Strategic and Comprehensive Partnership Framework between Egypt and the European Union, noting the volume of European investments totaling € 7.4 billion provided within the framework of the Strategic and Comprehensive Partnership between the two parties. This amount is distributed across six mutually prioritized areas: strengthening political relations, supporting economic stability, encouraging investment and trade, developing migration and mobility frameworks, boosting security, and promoting human-centered initiatives such as skills development and education.

Dr. Al-Mashat indicated that the Ministry of Planning, Economic Development and International Cooperation is currently working, in consultation with the EU Delegation in Cairo, on preparing the new cooperation framework for the period 2025-2027. This aligns with shared goals and priorities while ensuring the integration of programs so that initiatives support the implementation of reforms within the framework of the Macro-Financial Assistance and Budget Support mechanism, staying on the same trajectory. She affirmed that this new framework, which includes grants worth € 600 million within the Strategic and Comprehensive Partnership, will be directed towards key areas of cooperation between Egypt and the European Union, ensuring that financing aligns with national priorities and achieves maximum development impact.

Regarding the Macro-Financial Assistance and Budget Support (MFA) mechanism, the Minister noted that the first tranche of the macro-financial assistance, valued at € 1 billion, was disbursed last December. She explained that during the period from January to June 2025, Egypt, in cooperation with the European Commission's Directorate-General for Economic and Financial Affairs and national entities, conducted consultations to identify 87 reforms to be implemented as part of the second phase of the program, which will be funded by the second installment, valued at € 4 billion.

Dr. Al-Mashat reviewed “Egypt’s Narrative for Economic Development", which was prepared based on the directives of His Excellency the President of the Republic and the mandates of the Prime Minister, and in accordance with the provisions of State General Planning Law No. 18 of 2022 and the Unified Public Finance Law No. 6 of 2022. These laws constitute the legislative framework for setting national strategic goals, establishing priorities, linking them to macro-economic policies, and ensuring consistency between planning, budgeting, and performance indicators across various government entities.

Minister Al-Mashat pointed out that “Egypt’s Narrative for Economic Development” represents a comprehensive framework that ensures the government's action plan is consistent with Egypt Vision 2030 and responsive to changing regional and international developments while continuing the path of economic reform. It focuses efforts on high-productivity and export-oriented sectors and enhancing the role of the private sector as a main engine for growth and job creation. This framework includes policies related to investment, industry, trade, and employment, with a focus on the manufacturing, tourism, agriculture, energy, and information and communication technology sectors.

Minister Al-Mashat added that “Egypt’s Narrative for Economic Development” is the general comprehensive development framework under which the specific measures and reforms in the first and second phases of the Macro-Financial Assistance and Budget Support program fall. This ensures full compatibility between the EU-supported reforms and Egypt's national economic policies. The first chapter of “Egypt’s Narrative for Economic Development” also addresses the Comprehensive Partnership Agreement with the European Union as part of the state's efforts to maximize the benefit from development finance.

Dr. Al-Mashat mentioned the Strategic and Comprehensive Partnership between Egypt and the European Union, signed on March 14, 2024, which sets common strategic priorities and goals to guide cooperation efforts, ensure their alignment with Egyptian national priorities, and respond to emerging needs within an integrated, long-term cooperative framework.

Regarding the existing cooperation portfolio between Egypt and the European Union, Minister Al-Mahat reaffirmed the importance of the EU as a key strategic development partner contributing to the implementation of priority projects in various sectors. The current portfolio is valued at approximately €1.3 billion, including grants and concessional financing. She noted the ongoing cooperation within the framework of blended finance programs that support vital sectors such as transport, water, agriculture, small and medium enterprises (SMEs), renewable energy, social protection, governance, civil society, and capacity building.