European leaders are poised to unveil a substantial funding package and an enhanced partnership with Egypt in Cairo this coming Sunday, as part of a concerted effort to mitigate migrant movements across the Mediterranean, a strategy that has faced scrutiny from human rights organizations.
The accord aims to bolster collaboration across various sectors such as renewable energy, commerce, and security, while providing grants, loans, and other financial assistance over the next three years to bolster Egypt’s struggling economy.
European nations have harbored concerns about potential instability in Egypt, a nation of 106 million inhabitants grappling with challenges in securing foreign currency, prompting a growing number of its citizens to seek migration opportunities in recent years.
With inflation hovering near all-time highs, many Egyptians report grappling with economic hardships.
However, in recent weeks, the financial strain on the government has somewhat alleviated as Egypt secured a landmark investment deal with the United Arab Emirates, expanded its loan arrangements with the International Monetary Fund (IMF), and significantly devalued its currency.
On Sunday, a delegation led by European Commission President Ursula von der Leyen, alongside the Prime Ministers of Italy and Greece, and the President of Cyprus, will convene in Cairo.
According to Egypt’s finance minister, the government has garnered a total of $20 billion in multilateral support following an expansion of its loan program and economic reforms in collaboration with the IMF.
As per Finance Minister Mohamed Maait’s statement to Asharq Business, the European Union’s contribution to this total is expected to range between $5-6 billion.
Egyptian authorities assert that Egypt merits acknowledgment for hosting an estimated nine million foreign residents and effectively curbing irregular migration from its northern coastline since 2016.
