Egypt’s Foreign Minister Badr Abdelatty
In a phone call with EU High Representative for Foreign Affairs and Security Policy Kaja Kallas on Firday, Abdelatty highlighted rising energy and food prices, increased shipping and maritime insurance costs, and the broader negative impact on the Egyptian economy.
The second €4 billion tranche is part of a €7.4 billion EU support package agreed upon in March 2024 to help Egypt weather a cascade of economic shocks—from the Israeli war on Gaza to the lingering fallout of the war in Ukraine.
The EU released an initial €1 billion tranche in January 2026, aimed at easing short-term financing pressures and creating fiscal space for social spending. The second tranche is expected to be disbursed in three instalments through 2027.
Abdelatty’s remarks come as the US-Israel-Iran conflict intensifies, disrupting supply chains and driving energy prices higher.
During their conversation, Abdelatty and Kallas urged a joint action to end the war as soon as possible, according to a statement released on Saturday from the Egyptian foreign ministry.
Both sides called for concrete proposals and a practical diplomatic framework to halt the conflict and prevent it from spreading further.
They also stressed the critical importance of continued coordination between Egypt and the European Union to de-escalate tensions and advance diplomatic tracks and political solutions.
Both sides also condemned Iranian attacks on Arab nations, which targeted US military bases in the region in retaliation for US-Israeli strikes.
They urged pursuing the diplomatic path as the only way to prevent the region from sliding into further instability and to preserve regional and international peace and security, the statement added.
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