EU Approves Egypt's Second Financial Tranche worth €4 Billion

Mohamed El-Homsani, Cabinet Spokesperson said that relations between Egypt and the European Union are strategic, and that both parties cooperate in various fields, including politics, technology, education, technical education, and the economy.

The spokesperson added, during an interview with Extra News, that the approval of the disbursement of the second tranche of Egyptian financial support, worth €4 billion, is an opportunity to support the reform process in the Egyptian economy, which will then be reflected in the ability to deepen cooperation with the European Union and all EU countries.

He continued: "It also works to support Egypt's ability to confront any current or future economic challenges, and the government continues to leverage various partners to implement the economic reform program. Despite any resulting burdens, Egypt benefits from the program."

President Abdel Fattah El-Sisi said during a press conference with French President Emmanuel Macron on the sidelines of his visit to Cairo that France supported Egypt in quickly obtaining the second tranche of the European Union loan to Egypt.

In the last few hours by the European Parliament's decision to approve the disbursement of the second tranche of the financial support package to Egypt. This occurred in a voting session that witnessed broad and majority support for the decision, with Egypt set to receive €4 billion very soon.

This step reflects the depth of political and economic relations and the strength of the strategic partnership between Egypt and the European Union, as well as Europe's appreciation for Cairo's role in supporting security and stability in the Middle East, the Southern Mediterranean, and the African continent, especially in light of escalating geopolitical tensions in the region.

Moreover, this decision reflects the European Union's awareness of the depth and seriousness of the threats surrounding Egypt, which pose a threat from all strategic directions. This is particularly true given Egypt's prominent and significant role in preventing illegal migration to Europe from 2016 to date. This is particularly true given that not a single case of illegal migration from Egypt to Europe has been recorded, despite the Middle East engulfed in conflicts and tensions in Sudan, Libya, and the war on Gaza. 

Egypt also hosts more than 10 million refugees, which represents an economic burden on the Egyptian economy.

This demonstrates that Egypt is a bulwark against illegal migration to Europe from all African countries. This is a result of the security, economic, and political stability enjoyed by Egypt. It is also in the European Union's interest to support Egypt economically and politically so that it can continue to combat illegal migration. This can be achieved by assisting Egypt in financing numerous investment projects.

In addition, Egypt's receipt of this €4 billion foreign exchange package will contribute to strengthening its foreign currency reserves, bridging the financing gap, and providing foreing currency to importers and manufacturers. This will also contribute to increasing manufacturing, deepening local production, expanding existing projects, increasing local production, and reducing inflation rates.

Of course, all of this will contribute to increasing the volume of local and foreign investments and supporting the Egyptian economy, especially since Egypt is an important strategic partner of the European Union, which seeks to increase its investments in Egypt. It also seeks to increase the flow of gas, which is liquefied in Egypt and exported to EU countries, especially after the halt in Russian and Ukrainian supplies to Europe.