The European Union has disbursed €1.5 billion to Egypt as the second instalment of a €4 billion Macro-Financial Assistance (MFA) programme, the European External Action Service (EEAS) announced on 29 July 2026. The payment follows a positive assessment by the European Commission that Egypt met conditions including economic policy reforms, progress under the International Monetary Fund (IMF) programme, and fulfilment of political requirements in the EU-Egypt Memorandum of Understanding.
The €4 billion MFA programme was proposed by the Commission in March 2024 and adopted by the European Parliament and the Council in June 2025. The first €1 billion instalment was disbursed in January 2026, preceded by a €1 billion short-term MFA in December 2024. With this latest 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, which elevated bilateral relations and committed a broader financial package of €7.4 billion for 2024–2027, comprising grants, loans and guarantees.
The reforms supported under the programme focus on macroeconomic resilience, public financial management, business climate, competition, state-owned enterprise governance, social protection, and green transition in water governance, energy efficiency and electricity markets. The assistance complements the IMF programme and aims to safeguard macroeconomic stability while fostering sustainable, inclusive and private sector-led growth.
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 an essential pillar of stability in the Mediterranean and the wider Middle East and North Africa region. A final instalment of €1.5 billion is expected once the remaining agreed conditions are fulfilled.