The European Union announced a 7.4 billion euro ($8.06 billion)funding package and an upgraded relationship with Egypt, part of a push to stem migrant flows to Europe that has been criticised by rights groups.
The agreement, which lifts the European Union's relationship with Egypt to a "strategic partnership", was announced as a delegation of leaders visited Cairo. It is designed to boost cooperation in areas including renewable energy, trade, and security while delivering grants, loans and other funding over the next three years to support Egypt's faltering economy.
The proposed funding includes 5 billion euros in concessional loans and 1.8 billion euros of investments, according to a summary of the plan published by the EU. An additional 600 million euros would be provided in grants, including 200 million euros for managing migration issues.
European governments have long been worried about the risk of instability in Egypt, a country of 106 million people that has been struggling to raise foreign currency and where economic adversity has pushed increasing numbers to migrate in recent years.
Inflation has been running close to record highs and many Egyptians say they struggle to get by. Over the past month, however, the financial pressure on the government has eased as Egypt has struck a record deal for Emirati investment, expanded its loan programme with the IMF, and sharply devalued its currency.
Diplomats say Egypt's strategic importance has been underscored by the war in Gaza, where Egypt is trying to mediate between Israel and Hamas and increase deliveries of humanitarian aid; and by the conflict in neighbouring Sudan, which has created the world's biggest displacement crisis.
European Commission President Ursula von der Leyen headed a delegation meeting President Abdel Fattah al-Sisi in Cairo on Sunday that also includes the Italian, Greek, Austrian and Belgian prime ministers, and the Cypriot president.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.