European Union to strengthen ties with Egypt with billions of euros in funding

The European Union announced a 7.4 billion euro (US$8.06 billion) funding package and improved relations with Egypt as part of efforts to stem the flow of migrants into Europe, which has been criticized by rights groups.

The agreement, which elevates relations between the EU and Egypt to the level of a “strategic partnership”, was announced during a leadership delegation’s visit to Cairo. It aims to strengthen cooperation in areas such as renewable energy, trade and security, as well as provide grants, loans and other funds to support Egypt’s struggling economy over the next three years. There is.

The proposed funding includes €5 billion in concessional loans and €1.8 billion in investments, according to an outline of the plan published by the EU. A further 600 million euros will be provided in grants, including 200 million euros for managing transition issues.

European governments have long worried about the risk of instability in Egypt, a country of 106 million people struggling to raise foreign currency and a growing number of people leaving due to economic hardship.

Inflation is near record highs and many Egyptians say it is difficult to make ends meet. But fiscal pressure on the government has increased over the past month as Egypt inked a record deal for investment in the United Arab Emirates, expanded a loan program with the International Monetary Fund and sharply devalued its currency. has been relaxed.

Diplomats say Egypt’s strategic importance has been highlighted by the war in Gaza, and Cairo is trying to mediate between Israel and Hamas and increase humanitarian supplies. and the conflict in neighboring Sudan, which has caused the world’s largest displacement crisis.

European Commission President Ursula von der Leyen led a delegation meeting in Cairo on Sunday with President Abdel Fattah al-Sisi, which was also attended by the prime ministers of Italy, Greece, Austria and Belgium, and the president of Cyprus.

Egypt’s finance minister said the government is preparing a total of $20 billion in multilateral aid after expanding loans with the IMF and an economic reform program.

Most of the EU funding will be newly allocated and created in close cooperation with the IMF, with 1 billion euros of “macrofinancial” loan funding to be provided this year, a senior European Commission official said.

The remaining 4 billion euros will need approval from the European Parliament, the official added.

Border via Libya

Egyptian officials say the country deserves credit for largely blocking irregular migration from its northern coast since 2016, but the number of Egyptians attempting to reach Europe via Libya is rapidly increasing. , the EU is already providing support aimed at reducing these flows.

In recent months, the Greek islands of Crete and Gavdos have seen a surge in migrants, mainly from Egypt, Bangladesh and Pakistan, raising concerns about new Mediterranean smuggling routes.

Activists have criticized Western support for Mr. Sisi, who rose to power a decade ago by leading the overthrow of Egypt’s first democratically elected leader.

While the crackdown has wiped out dissidents across political lines, the state and military have expanded their control over the economy, which businessmen and analysts say is hampering the structural reforms called for by the IMF. It is claimed that

Mr. Sisi’s supporters say the security measures were necessary to stabilize Egypt and pave the way for social rights such as housing and employment.

The EU says its expanded partnership with Egypt aims to promote democracy and freedom, but moves to offer loans in exchange for curbing migration in other countries, including Tunisia, have faced obstacles and criticism.

Human Rights Watch said of the plan for stronger ties and new funding with Egypt, “The blueprint is the same as the flawed EU agreements with Tunisia and Mauritania: to deter migration and ignore abuses. It’s a thing,” he said.

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Amnesty International called on European leaders not to be complicit in human rights abuses occurring in Egypt.

“EU leaders must ensure that the Egyptian authorities adopt clear standards on human rights,” said Yves Guedi, Amnesty International’s director of European institutions.

Mr. Gedi pointed to Egypt’s restrictions on media and freedom of expression, as well as the crackdown on civil society.

Additional reporting by Associated Press