The European Union announced on Friday its decision to allocate 1 billion euros in short-term financial aid to Egypt. This measure aims at supporting Egypt's economy. Last month, Egypt consented to an $8 billion support program with the International Monetary Fund alongside an agreement with the EU, intended to enhance cooperation and manage migration issues, amid an ongoing economic downturn exacerbated by severe foreign currency shortages.
This 1 billion euros is a segment of a larger 5 billion euros loan package, with an additional 4 billion euros earmarked for long-term support from 2024 to 2027, pending approval from the EU's 27 member states.
The financial assistance seeks to mitigate the adverse fiscal impacts and financial exigencies Egypt faces, particularly in the aftermath of the Gaza conflict, Houthi incursions in the Red Sea, and the ongoing conflict in Ukraine. The EU stipulates that Egypt must persist in implementing "concrete and credible steps towards respecting effective democratic mechanisms (including a multi-party parliamentary system) and the rule of law and guaranteeing respect for human rights" as a prerequisite for this aid.
Source: reuters.com