Egypt expects to receive a new payment of 1.5 billion euros from the European Union within the next few days as part of a wider financial support package aimed at strengthening the country’s economy. Egyptian officials said the funding will help the country manage the economic effects of ongoing regional and global challenges.
The announcement was made during a joint news conference in Cairo on July 4. Egyptian Foreign Minister Badr Abdelatty spoke alongside European Union Commissioner for the Mediterranean Dubravka Suica after holding talks on expanding cooperation between Egypt and the EU.
Abdelatty said Suica’s visit reflects the growing partnership between Egypt and the European Union. He said both sides discussed ways to increase economic cooperation, attract more investment, and continue implementing the financial support agreement announced earlier.
The overall support package is worth 7.4 billion euros and is designed to strengthen Egypt’s economy while supporting long-term reforms and development. The plan includes financial assistance, investment, and closer cooperation in several key sectors.
According to Abdelatty, 5 billion euros of the package has been allocated as direct budget support for Egypt. He said the European Union has already transferred 2 billion euros. The remaining 3 billion euros will be released in two separate payments.
Egypt now expects to receive the first of those remaining payments, worth 1.5 billion euros, within days. Abdelatty said he also hopes the second 1.5 billion euro installment will arrive next autumn if the planned schedule continues.
The minister said the financial support will help Egypt respond to economic pressures caused by conflicts and instability across the region. He noted that regional crises have affected trade, investment, and government revenues over the past year.
One of the biggest economic challenges has been the sharp decline in income from the Suez Canal. Abdelatty said Egypt has lost about 10.5 billion dollars in canal revenue because of disruptions to shipping in the Red Sea.
The Suez Canal is one of the world’s busiest shipping routes and is an important source of foreign currency for Egypt. Many commercial ships have changed their routes in response to security concerns in the Red Sea, reducing the number of vessels using the canal and lowering Egypt’s earnings.
The European Union considers Egypt an important regional partner in areas such as trade, migration, energy, and security. In recent years, both sides have expanded cooperation through financial assistance and investment programs designed to support economic stability and sustainable growth.
Egypt has also continued to implement economic reforms in recent years. These measures include changes to public spending, efforts to attract foreign investment, and policies aimed at improving long-term economic performance. However, many Egyptians continue to face rising prices and higher living costs, making economic recovery a key priority for the government.
Officials from both Egypt and the European Union said stronger economic ties are expected to create new opportunities for trade, infrastructure development, clean energy projects, and private sector investment.
The expected 1.5 billion euro payment marks another step in the implementation of the wider support package. Egyptian officials believe the funding will provide important financial support as the country works to strengthen its economy, manage regional challenges, and continue its long-term development plans.
