European Union disburses €1.5 billion to Egypt under Macro-Financial Assistance programme

The European Commission has disbursed €1.5 billion to Egypt under the European Union's ongoing Macro-Financial Assistance (MFA) programme, reaffirming the EU's commitment to supporting Egypt's economic reform and long-term macroeconomic stability.

This EUR 1.5 billion disbursement is the second of the expected three instalments under the second MFA operation, worth a total of €4 billion, proposed by the Commission in March 2024 and adopted by the European Parliament and the Council in June 2025.

The disbursement follows the European Commission's positive assessment that Egypt has successfully met the conditions required for the release of the second tranche. These include the implementation of agreed economic policy reforms, continued progress under the International Monetary Fund (IMF) programme, and the fulfilment of the political requirements set out in the Memorandum of Understanding between the European Union and Egypt.

The reforms supported under the programme focus on strengthening macroeconomic resilience, improving public financial management, enhancing the business and investment climate, promoting competition, advancing governance of state-owned enterprises, expanding social protection, and supporting Egypt's green transition through reforms in water governance, energy efficiency and electricity markets.

“The Macro-Financial Assistance programme forms a central pillar of the EU–Egypt Strategic and Comprehensive Partnership, reflecting the European Union's recognition of Egypt as a strategic partner and an essential pillar of stability in the Mediterranean and the wider Middle East and North Africa region”, said HE Angelina Eichhorst, EU Ambassador to Egypt.

Last week’s disbursement follows the €1 billion short-term Macro-Financial Assistance provided in December 2024 and the first €1 billion instalment under the current €4 billion programme, disbursed in January 2026. With this payment, the European Union has provided €3.5 billion in macro-financial assistance to Egypt since the launch of the Partnership, with a final instalment of €1.5 billion expected once the remaining agreed conditions have been fulfilled.

Macro-Financial Assistance is an exceptional financial instrument through which the European Union supports neighbouring partner countries experiencing balance-of-payments pressures. The assistance complements the ongoing IMF programme in Egypt and contributes to safeguarding macroeconomic stability while supporting structural reforms that foster sustainable, inclusive and private sector-led economic growth.

Through the Strategic and Comprehensive Partnership, the European Union is supporting Egypt with a broader financial package worth €7.4 billion for the period 2024–2027, comprising grants, loans and guarantees that promote economic resilience, investment, trade, green transition, migration cooperation and human development.

Background

The EU–Egypt Strategic and Comprehensive Partnership, signed by European Commission President Ursula von der Leyen and President Abdel Fattah El-Sisi in March 2024, elevated bilateral relations to a strategic level and established cooperation across six priority areas:

• Political relations;

• Economic stability;

• Trade and investment;

• Migration and mobility;

• Security;

• Demography and human capital.

As part of this partnership, the European Union committed a financial package of €7.4 billion, including up to €5 billion in Macro-Financial Assistance, to support Egypt's economic reform agenda and strengthen shared prosperity and stability.

The current €4 billion Macro-Financial Assistance programme is implemented through three instalments linked to the achievement of agreed economic reforms, continued implementation of the IMF programme, and progress regarding the political conditions set out in the Memorandum of Understanding between the European Union and Egypt.