Council Decision (EU) 2024/1144 providing short-term macro-financial assistance to the Arab Republic of Egypt

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Series Details (L) 2024/1144
Publication Date 15/04/2024
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Decision (EU) 2024/1144 - adopted by the Council of the European Union on 12 April 2024 - providing short-term macro-financial assistance (MFA) to Egypt.

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This Decision allows for the provision of €1 billion of urgent short-term MFA to Egypt aiming to support the stabilisation of its economy. In order to finance it, the European Commission is empowered to borrow the necessary funds in the capital markets or from financial institutions and to on-lend them to Egypt. The release of the EU's MFA is managed by the Commission in a manner consistent with the agreement or understandings reached between Egypt and the International Monetary Fund (IMF), and with the key principles and objectives of economic reforms set out in the Association Agreement (AA).

This short-term MFA is part of a financial package also comprising longer-term support, which underpins an agreement reached between the European Union (EU) and Egypt in March 2024 to deepen their relationship and develop a Strategic and Comprehensive Partnership. The MFA was requested by the Egyptian authorities on 12 March 2024. It aims at helping the country cover part of its overall external financing gap. The MFA is provided in the form of loans made available in one installment. A precondition for granting the assistance is that Egypt takes steps towards respecting effective democratic mechanisms and the rule of law and guaranteeing respect for human rights.

The draft text was adopted by the European Commission on 15 March 2024. The Decision was adopted by the Council of the European Union on 12 April 2024, and published in the Official Journal on 15 April 2024.


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Commentary and Analysis
Human Rights Watch (HRW): News, 15/03/2024: EU Deal with Egypt Rewards Authoritarianism, Betrays “EU Values”
Euronews: Analysis, 18/03/2024: The EU's big bet on Egypt comes with a high price and high risks
European Council on Foreign Relations (ECFR): Policy Alerts, 20/03/2024: Aid with reform: How the EU-Egypt deal can succeed

EurActivm 15/03/2024: EU set to seal multi-billion investment deal in Egypt amid EU election campaign
Reuters, 17/03/2024: EU pledges billions of euros for Egypt as it seeks to curb migration
Euronews, 17/03/2024: European Union announces €7.4 billion package of aid for Egypt
Politico, 17/03/2024: EU leaders ink €7.4B economic aid, migration deal with Egypt
Le Monde, 17/03/2024: EU announces €7.4 billion aid package for Egypt as concerns mount over migration
The Guardian, 17/03/2024: EU seals €7.4bn deal with Egypt in effort to avert another migration crisis
EUObserver, 17/03/2024: Von der Leyen agrees €7.4bn aid programme for Egypt
Deutsche Welle, 17/03/2024: Egypt secures €7.4 billion EU aid package
Associated Press (AP News), 29/03/2024: The EU plans to fast-track some financial aid to Egypt. The usual funding safeguards will not apply
Reuters, 12/04/2024: EU pledges Egypt 1 billion euros in financial aid

EUR-LEX: COM(2024)460: Proposal for a Council Decision on providing short-term macro-financial assistance to the Arab Republic of Egypt
EUR-LEX: SWD(2024)461: Staff Working Document accompanying the Proposal - Ex-ante Evaluation Statement
European Commission: DG NEAR: European Neighbourhood Policy (ENP): Egypt
Council of the European Union: Press Release, 12/04/2024: Council adopts €1 billion macro-financial assistance to Egypt

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