The European Union (EU) and Egypt have joined forces in a significant move, signing a financial package worth 7.4 billion euros. This deal aims to support Egypt, a country facing economic challenges, while also boosting energy sales to Europe and addressing irregular migrant flows.
The signing ceremony took place in Cairo, where European Commission President Ursula von der Leyen and leaders from Austria, Belgium, Cyprus, Greece, and Italy gathered with Egyptian President Abdel Fattah al-Sisi.
The agreement includes various measures such as providing billions in credit over the coming years and increasing energy flows to help Europe reduce its reliance on Russian gas. Von der Leyen emphasized that the partnership elevates the relationship between the EU and Egypt, covering aspects from trade and investment to low-carbon energy, migration management, and education.
Specifically, the deal involves five billion euros in loans over four years, 1.8 billion euros in investment, and funding for bilateral projects, including those related to migration.
Egypt finds itself in a challenging position, bordered by conflict zones like Libya and affected by ongoing conflicts in neighboring countries. The EU recognizes Egypt's strategic importance and aims to cooperate on security and counter-terrorism, particularly along its southern border with Sudan.
The issue of irregular migration, a concern for both the EU and Egypt, was also addressed during the signing. Leaders stressed the need to tackle root causes by creating opportunities and jobs for the younger generation.
This agreement follows similar efforts by the EU with countries like Libya, Tunisia, and Mauritania to control migrant flows across the Mediterranean Sea. Last year, the number of migrant arrivals in Europe via this route rose significantly, leading to concerns and political tensions within the EU.
Critics, including human rights groups, have raised concerns about the EU's approach, citing instances of mistreatment of migrants by Egyptian authorities. However, Egypt highlights its efforts to prevent migrant boats from departing its coast since 2016.
In addition to addressing migration, the financial support from the EU comes at a crucial time for Egypt, which is grappling with a severe economic crisis characterized by inflation and rising debt. The International Monetary Fund recently approved an $8 billion loan package for Egypt, which has implemented reforms to stabilize its economy.
Egypt's economy, heavily reliant on industries like infrastructure and affected by external factors such as attacks on shipping routes, faces significant challenges. With this new financial support, Egypt aims to navigate through its economic difficulties and build a more stable future.
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