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European Union and Egyptian leaders joined forces on Sunday to sign a substantial €7.4 billion financial package aimed at bolstering Egypt's economy, enhancing energy trade with Europe, and addressing irregular migrant flows.
As reported by Euractiv, European Commission President Ursula von der Leyen, accompanied by leaders from Austria, Belgium, Cyprus, Greece, and Italy, convened in Cairo with Egyptian President Abdel Fattah al-Sisi for the signing ceremony.
Von der Leyen emphasized the significance of elevating the EU-Egypt relationship to a Strategic and Comprehensive Partnership, covering areas such as trade, investment, renewable energy, migration management, and cultural exchange.
The agreement entails €5 billion in loans over four years, €1.8 billion in investments, and substantial funding for bilateral projects, including those focused on migration.
A senior European Commission official highlighted the strategic importance of the deal, particularly in diversifying energy sources and reducing dependence on Russian gas.
This pact follows similar agreements with Libya, Tunisia, and Mauritania, all aimed at curbing irregular migration across the Mediterranean.
Egypt, amidst an economic crisis compounded by its proximity to conflict zones, emerges as a pivotal partner for Europe, according to EU officials.
The deal encompasses cooperation on security, counter-terrorism, and border protection, notably with Sudan.
While addressing the ongoing conflict in the Gaza Strip, the primary focus remains on mitigating irregular migration.
European leaders emphasized the need for joint efforts to tackle the root causes of migration by creating opportunities and employment for the youth.
Despite criticism from human rights groups, the EU remains committed to its approach, citing the decrease in migrant departures from Egypt's coast since 2016.
With Egypt grappling with economic challenges exacerbated by external factors, including attacks on Red Sea shipping, the financial assistance aims to stabilize the economy and ease debt burdens.
The International Monetary Fund recently approved an $8 billion loan package, reflecting the international community's support for Egypt's reform efforts.
As Egypt navigates through economic turbulence, the partnership with the EU offers hope for economic recovery and stability in the region.
[With information sourced from Euractiv]
