The payment marks the first disbursement under the second phase of the EU’s macro-financial assistance programme. Approval followed the implementation of 16 economic and structural measures required by the EU, Al-Mashat said at a press conference in the New Capital.
The reforms focus on stabilizing public finances, including improvements in budget planning, financial risk management and public investment oversight. Additional measures target the business environment, including changes to industrial land allocation and investment licensing procedures, according to the minister.
The programme also includes commitments linked to environmental policy, such as water resource management, waste-to-energy development, energy efficiency measures and protections for the Red Sea’s natural resources.
Egypt received the first 1 billion euro tranche earlier this month as part of the 2024–2027 financing package, which was agreed under the Egypt–EU Strategic and Comprehensive Partnership signed in March 2024.
The partnership framework covers political cooperation, economic stability, trade and investment, migration, security, and skills development. EU funding is tied to progress on public financial management reforms and competition policy.
The 7.4 billion euro package includes 5 billion euro in concessional loans for macro-financial support, 1.8 billion euros in investment financing under the EU’s Southern Neighbourhood Economic Investment Plan, and 600 million euros in grants, including 200 million euros earmarked for migration-related programmes.
Al-Mashat said around 38 reform measures have been implemented so far, including 22 linked to the tranche disbursed earlier this month. Two further tranches totalling 3 billion euro are scheduled for 2026.
The EU funding comes as Egypt seeks external financing to support its budget and economic reform programme amid pressure on foreign currency inflows and public finances.
Egypt's Narrative for Economic Development addresses achieving macroeconomic stability goals through fiscal and monetary policies, highlights the importance of the Suez Canal, outlines incentives for the real estate market, and addresses industrial development, local and foreign investments, foreign trade, green transition, the non-banking financial sector, and labour market efficiency.
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