EU, Egypt to Sign €4 Billion 2nd Tranche of Support Package This Week

The European Union and Egypt are set to sign the second tranche of the EU’s financial support package—worth €4 billion—during a high-level summit in Brussels this Wednesday. The agreements, part of a broader €7.4 billion funding framework aimed at stabilizing and strengthening Egypt’s economy, mark a major milestone in Cairo’s strategic partnership with Brussels.

EU Ambassador to Egypt, Angelina Eichhorst, announced during a press conference last Thursday that the upcoming tranche includes €1.8 billion to be mobilized in cooperation with European financial institutions, alongside €600 million in direct grants to be disbursed over the next three years. The grants will focus on shared priorities such as clean energy, sustainability, and green economy initiatives, with the first batch to be rolled out later this year.

Eichhorst noted that the EU had already released €1 billion last year as the first installment, adding that “we have now exceeded that figure with the acceleration of joint project implementation.” She also revealed that additional funding will be channeled through the EU’s Sustainable Development Fund Plus (EFSD+) to boost Egypt’s green transition efforts.

The upcoming financial package will also include €75 million to support Egypt’s ongoing social and economic reforms, €100 million for capacity-building and sustainable development, and funding for the institutional and administrative framework to activate Egypt’s national electronic signature system.

On migration cooperation, the EU will allocate €200 million to help Egypt combat migrant smuggling and strengthen its border management capabilities. The ambassador emphasized that these funds reflect Europe’s confidence in Egypt’s stability and its growing role as a key regional partner in energy, development, and migration management.

This new tranche reinforces the EU-Egypt partnership agreement signed earlier this year, under which both sides committed to enhancing economic resilience, investing in renewable energy, and addressing regional challenges collaboratively.