The European Commission has disbursed €1.5 billion to Egypt as the second instalment of a €4 billion Macro-Financial Assistance (MFA) programme, the EU Delegation to Egypt announced on 29 July 2026. The payment follows a positive Commission assessment that Egypt met agreed economic reform conditions, continued progress under the International Monetary Fund (IMF) programme, and political requirements set out in the EU-Egypt Memorandum of Understanding. The reforms focus on macroeconomic resilience, public financial management, business climate, competition, state-owned enterprise governance, social protection, and green transition in water, energy efficiency, and electricity markets.
The €4 billion MFA programme was proposed by the Commission in March 2024 and adopted by the European Parliament and Council in June 2025. The first €1 billion instalment was disbursed in January 2026. A final €1.5 billion tranche is expected once remaining conditions are met. This disbursement follows a separate €1 billion short-term MFA provided in December 2024. With this payment, the EU has provided €3.5 billion in macro-financial assistance to Egypt since the launch of the EU-Egypt Strategic and Comprehensive Partnership in March 2024, when Commission President Ursula von der Leyen and President Abdel Fattah El-Sisi signed the agreement. The partnership includes a broader financial package worth €7.4 billion for 2024–2027, comprising grants, loans, and guarantees supporting economic resilience, investment, trade, green transition, migration cooperation, and human development.
EU Ambassador to Egypt Angelina Eichhorst said the MFA programme forms a central pillar of the Strategic and Comprehensive Partnership, reflecting the EU's recognition of Egypt as a strategic partner and essential pillar of stability in the Mediterranean and wider Middle East and North Africa region. The MFA instrument is designed to support neighbouring partner countries facing balance-of-payments pressures, complementing the IMF programme and aiming to foster sustainable, inclusive, private sector-led growth.
The disbursement provides immediate liquidity support to Egypt's foreign reserves, benefiting the Egyptian government and central bank. For EU taxpayers, the loan carries repayment risk tied to Egypt's economic trajectory. Egyptian businesses may benefit from improved investment climate and governance reforms, while Egyptian households could see gradual effects from social protection expansion and energy market reforms. The programme reinforces the EU's strategic engagement in a region facing multiple security and economic challenges.