Egypt has received a second €1 billion tranche from the European Union as part of a wider €7.4 billion financing package aimed at supporting the country’s economic stability and reform agenda, the Ministry of Planning, Economic Development and International Cooperation said on Thursday (15 January 2026).
The latest disbursement follows Egypt’s implementation of 16 economic and structural measures required by the EU and will be used to reduce short-term financing pressures, extend debt maturities and create additional fiscal space for spending on human development programmes, according to Planning Minister Rania Al-Mashat.
The funding forms part of the EU’s Macro-Financial Assistance and Budget Support Mechanism and is designed to support macroeconomic stability while underpinning Egypt’s efforts to build a more sustainable and resilient economy.
European Commission President Ursula von der Leyen said the financing would support Egypt’s economic stability, sustainability, democracy and the rule of law. EU Ambassador to Egypt Angelina Eichhorst described the tranche as evidence of Egypt’s commitment to implementing key economic and political reforms that lay the groundwork for long-term growth.
The €7.4 billion package includes €5 billion in concessional loans for macro-financial support, €1.8 billion in investment financing under the EU’s Southern Neighbourhood Economic Investment Plan and €600 million in grants, including funding earmarked for migration-related programmes.
The assistance is aligned with Egypt’s reform programme supported by the International Monetary Fund, which has noted improvements in the country’s balance of payments, narrowing of the current account deficit and continued strength in tourism, remittances and non-oil exports. The IMF has also stressed the need to accelerate reforms to enable stronger private sector-led growth.
The latest tranche builds on agreements reached at the Egypt–EU Summit in October 2025 and follows the Strategic and Comprehensive Partnership signed in March 2024, covering political cooperation, economic stability, trade, investment and migration.
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