The European Union (EU) is preparing a €7.4 billion aid package for Egypt to support its economy and address potential financial challenges exacerbated by conflicts in Gaza and Sudan, Financial Times reported on Wednesday.
European Commission president Ursula von der Leyen, along with the Greek, Italian, and Belgian prime ministers, will finalise and announce the agreement during a visit to Cairo next Sunday.
This aid package is part of the EU’s efforts to prevent economic instability in neighbouring regions and curb irregular migration from Africa, the report added.
The deal includes support for Egypt’s energy sector, assistance for Sudanese refugees in the country, and fortification of the border with Libya to prevent migration to Europe.
The package consists of €7.4 billion in grants and loans until 2027, with immediate emergency financial assistance of €1 billion and additional macro-financial assistance pending approval from EU member states.
Egypt’s role in managing irregular migration to Europe is crucial, and the aid aims to provide immediate support to address economic and refugee crises in the country, the report said.
The EU sees these agreements necessary to manage migration flows. Egypt hosts a significant number of refugees and asylum seekers, mainly from the Sudan.
The EU views Egypt as a key partner and plans to repackage existing support programmes to provide assistance. The EU’s approach to managing migration through agreements with third countries has faced criticism, but officials defend it as a practical solution given the increase in migration to the EU.
