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Brussels has made similar deals with Tunisia, Mauritania and Turkey to curb irregular migration into the EU.
The EU on Saturday finalized a deal for the disbursement of up to €1 billion in macro-financial assistance to Egypt, within their partnership geared at curbing irregular migration and boosting the North African country’s economy.
The two sides signed a memorandum of understanding (MoU) for the financing during the EU-Egypt Investment Conference in Cairo that included Egyptian President Abdel Fattah el-Sisi and European Commission President Ursula von der Leyen.
“One hundred days ago, we opened a new era in the relations between Egypt and the European Union, with our strategic and comprehensive partnership. Today, we deliver,” von der Leyen said in a statement. The €1 billion in financial aid “will incentivize the reforms that businesses and entrepreneurs in the private sector need,” she said.
The disbursement to Egypt replicates similar deals Brussels has made with Tunisia ,Mauritania and Turkey to curb irregular migration into the EU.
The EU-Egypt partnership has been strongly criticized by human-rights groups, who see it as “another EU ‘cash for migrant control’ deal.”
The macro-financial assistance (MFA) of up to €1 billion is the first of two MFA operations for Egypt, which will provide a total of up to €5 billion in favorable loans to Egypt. The agreed policy actions cover three pillars: promoting macroeconomic stability, improving the business environment and enhancing Egypt’s competitiveness, and supporting Egypt’s green transition.
The EU and Egypt also signed the Green Sustainable Industry program, supported by a €30 million EU grant to help Egyptian industry to invest in pollution reduction, decarbonization, energy and resource efficiency, and three financing agreements worth a total of €36 million, as part of bilateral cooperation programs.
A €60 million EU support package to improve grain storage in Egypt under the Food and Resilience Facility was also signed at the conference.
“Egypt has proven that it is a reliable partner in facing common challenges and in a way that achieves security and stability in our regional neighborhood,” Sisi said. He also noted that the European investments “shall strengthen the position of the European Union, being the Egyptian economy’s most prominent trade and investment partner.”
EU governments adopted the short term MFA of up to €1 billion in April. The longer-term operation of up to €4 billion of MFA is expected to be adopted by the European Parliament and the Council later this year.