EU plans €4bn loan package for Egypt

The European Union plans to provide Egypt with €4 billion ($4.5 billion) in loans to help ease its financial pressures, AFP reports. The provisional agreement, reached between the EU Council and European Parliament, must be formally approved before disbursement begins.

The funds are intended to complement Egypt’s $8 billion IMF loan programme and are contingent on Cairo’s continued progress with economic reforms. The move follows a broader EU-Egypt “strategic partnership” signed in March 2024, which pledged €5 billion in financial support, including €1 billion disbursed last April.

Egypt, grappling with inflation, currency devaluation, and the impact of regional instability, has sought international support to stabilise its economy. The EU’s growing engagement reflects both strategic interest and concern over potential spillovers from unrest in neighbouring Gaza, Sudan, and Libya, as well as the desire to curb migration flows across the Mediterranean.