EU makes “strategic partnership” deal with Egypt
The European Union announced a €7.4 billion funding package to Egypt to stem migrant flows to Europe, criticised by rights groups, reports Reuters.
On the 17th of March, the EU and Egypt unveiled an agreement that will lift their relationship to a “strategic partnership” as a delegation of leaders visited Cairo.
According to a summary published by the EU, the proposed funding includes €5 billion in concessional loans and €1.8 billion in investments. A further €600 million would be provided in grants, including €200 million for managing migration.
Such deals were “the best way to address migratory flows”, said Italian Prime Minister Giorgia Meloni, who travelled to Cairo alongside EU Commission President Ursula von der Leyen, the Greek, Austrian and Belgian prime ministers, and the Cypriot president.
The agreement is designed to boost cooperation in areas such as trade, security and renewable energy. Simultaneously, grants, loans and other funding will be delivered to Egypt over the next three years to support the country’s faltering economy.
European governments have long been worried about the issue of instability in Egypt. A country with a population of 106 million people where economic adversity has pushed increasing numbers to migrate and has been struggling to raise foreign currency.
READ: Libya deports Egyptian migrants
Many diplomats have commented on Egypt’s strategic importance, saying that it has been underscored by the effects of the war in Gaza, where Egypt has tried to mediate between Israel and Hamas and increase deliveries of humanitarian aid.
Egypt has also been affected by the conflict in neighbouring Sudan, which has created the world’s biggest hunger and displacement crisis.
READ: war-torn Sudan faces world’s worst hunger crisis
Von der Leyen said it was critical to rapidly reach a ceasefire deal in the Gaza Strip. Alongside Egyptian President, Abdul Fattah al-Sisi, both leaders warned against an Israeli incursion into Rafah, where much of Gaza’s population has been displaced.
Many Egyptians say they struggle to get by as Inflation is running close to record highs within the country. However, over the past month, financial pressure has eased as Egypt struck a record deal for Emirati investment, its program with the IMF, and sharply devalued its currency.
Egypt says it has lined up a total of $20 billion in multilateral support after increasing its loan and economic reform program with the IMF.
Reuters.
