EU Allocates €7.4Bn Financial Package For Egypt Spanning 2024-2027

2024-03-17 10:26:39

(MENAFN- Daily News Egypt)

The EU has elevated its cooperation with Egypt to a Strategic and Comprehensive Partnership. In support of this, the EU proposed a €7 financial and investment package for Egypt spanning 2024-2027. This package comprised €5bn in concessional loans for macro-financial assistance, an additional €1 in investments under the Southern Neighborhood Economic and Investment Plan, and €600m in grants, which included €200m dedicated to migration management.

In Cairo, the EU highlighted projects within the Southern Neighborhood Economic and Investment Plan that focus on energy transition and security, supporting the Nexus Water, Food, and Energy Initiative, and aligning with Egypt's climate strategy. The EU will allocate €35m in grants to aid Egypt in increasing renewable energy capacities and enhancing the energy efficiency of electricity generation.

Support extends to the regional MEDUSA Submarine optical fiber cable, spanning 7,100 km, which connects North African countries with both shores of the Mediterranean. This project aims to handle the increasing data volumes and bolster connectivity.

To counteract the effects of Russia's war in Ukraine on food security in the southern neighborhood, the European Commission has established a“Food and Resilience Facility.” Within this framework, Egypt will receive €100m to augment grain storage and production capabilities.

Collaboration in the green transition and resource efficiency includes enhancing wastewater infrastructure and services in Egypt, reducing pollution, and improving public health. This includes the expansion and modernization of the Helwan Wastewater Treatment Plant in the Greater Cairo Area and the improvement of sanitation services in the Fayoum Governorate.

The partnership encompasses six key priorities:

Political Relations : Intensifying political dialogue, including biennial EU-Egypt Summits and annual Association Council meetings, while promoting stability, democracy, fundamental freedoms, human rights, gender equality, and equal opportunities.

Economic Stability : Supporting Egypt's macro- and socio-economic reforms, including macro-financial assistance in collaboration with international partners, and fostering private investment attraction.

Investments and Trade : Mobilizing investments to modernize the economy, particularly for the green and digital transition under the Southern Neighborhood Economic and Investment Plan, supporting the Investment Conference in Cairo, and focusing on energy projects like the GREGY interconnections and Egypt's renewable hydrogen industry.

Migration and Mobility : Enhancing cooperation on migration management, combating human smuggling and trafficking, strengthening border controls, addressing illegal migration's root causes, and facilitating legal migration.

Security Cooperation : Strengthening EU-Egypt relations through enhanced counterterrorism efforts, addressing security threats, including cyber, involving Europol, and expanding law enforcement collaboration, organized crime combat, and capacity building.

People and Skills : Advancing joint initiatives in education and training, increasing exchanges under Erasmus+, and intensifying cooperation in research and innovation, following Egypt's accession to Horizon Europe and Creative Europe.

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