On 22 October, the inaugural EU-Egypt Summit took place in Brussels, where European Commission President Ursula von der Leyen and Egyptian President Abdel Fattah al-Sisi jointly announced three significant agreements. This Summit represents a pivotal advancement in the relationship between the EU and Egypt, building upon the Association Agreement and the Strategic & Comprehensive Partnership established earlier this year.
“The EU-Egypt partnership is stronger than ever before. Our shared vision of cooperation and true partnership between Egypt, Europe and the wider Mediterranean is becoming a reality,” stated Ursula von der Leyen, President of the European Commission.
“Today is a testament to the hard work and dedication to achieving this, with our first EU-Egypt summit and the agreements we sign. This is the direct result of the ambitious Strategic and Comprehensive Partnership we signed last year – delivering new investments and concrete opportunities for people and businesses across Egypt and Europe. Our Pact for the Mediterranean keeps this spirit. It’s our offer to Egypt and our other Southern neighbours: Let’s join forces and work together as partners.”
Macro-Financial Assistance
Commissioner for Economy and Productivity Valdis Dombrovskis and Egypt’s Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat presented a memorandum of understanding (MoU) for a second macro-financial assistance (MFA) operation to Egypt, valued at €4 billion. These MFA operations are designed to address Egypt’s external financing needs by providing loans on favourable terms, while also supporting an ambitious reform agenda.
The MoU outlines essential reforms that underpin Egypt’s ongoing economic stabilisation efforts. These policy actions are structured around three core pillars: promoting macroeconomic stability and resilience; enhancing the business environment and competitiveness; and supporting Egypt’s green transition. The current MFA operation, combined with an initial macro-financial loan of €1 billion disbursed in December 2024, brings the total assistance to €5 billion. This constitutes the most significant portion of the overall €7.4 billion EU financial support package for Egypt under the Strategic and Comprehensive Partnership.
EU Support for Socio-Economic Reforms at the Local Level
Commissioner for the Mediterranean Dubravka Šuica and Minister Al-Mashat also signed a Financing Agreement committing an EU grant contribution of €75 million. This funding is intended to support key initiatives addressing socio-economic challenges in Egypt and promote inclusive growth at the local level. The programme aims to improve access to essential services, including health, education, water, and sanitation, while enhancing social safety nets, particularly for women and youth. Economic stability remains a fundamental pillar of the Strategic and Comprehensive Partnership between the EU and Egypt.
Horizon Europe Initiative
In a further significant development, Commissioner for Startups, Research and Innovation Ekaterina Zaharieva and Egypt’s Minister of Foreign Affairs, Badr Abdelatty, formalised Egypt’s association with the Horizon Europe programme. This partnership represents a critical advancement in research and innovation, opening new opportunities for scientific collaboration and technological progress.
In addition to the three signed agreements, the European Commission also announced three financial support operations for 2025. The first, amounting to €110.5 million, aims to promote sustainable development, strengthen economic governance, enhance technical and vocational education, and improve skills for future job markets. Furthermore, the EU intends to allocate €50 million to support investment projects that facilitate Egypt’s green transition. This effort will also aim to stimulate investment mobilisation in Egypt, particularly through the European Fund for Sustainable Development Plus (EFSD+), and to operationalise key EU-funded projects totalling €200 million, as outlined under the migration pillar of the SCP.
Investments, Competitiveness, and Innovation
Under the auspices of President von der Leyen and President al-Sisi, a High-Level Event titled “Implementing the EU–Egypt Strategic and Comprehensive Partnership: Accelerating Strategic Investment, Industrial Transformation, and Innovation” convened prominent political and business leaders from both Europe and Egypt, alongside representatives from development agencies and the research and innovation sectors. This event served as a follow-up to the successful EU-Egypt Investment Conference held last year and the launch of the EU-Egypt Investment Mechanism in June. It is anticipated that the groundwork will be laid for a business and investor roundtable to be convened in Cairo in 2026.
