While Egypt and the European Union have maintained institutional relations and a partnership since the signing of the Egypt–EU Association Agreement in 2001 (which entered into force in 2004), bilateral relations took a more comprehensive and strategic trajectory beginning in 2014 under the leadership of H.E. President Abdel Fattah El-Sisi. These efforts culminated in the signing of the declaration elevating relations to a Strategic Partnership in March 2024.
In this report, the Ministry of Planning, Economic Development & International Cooperation reviews the key milestones shaping Egyptian–European relations since March 2024. This comes following the announcement that Egypt has received €1 billion, representing the first tranche of the second phase of the Macro-Financial Assistance (MFA) and budget support mechanism. The Ministry is responsible for monitoring the implementation of the economic pillar of this strategic partnership.
H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development & International Cooperation, emphasized that the Ministry is working in close coordination with relevant national authorities to implement the economic dimension of the partnership. This includes monitoring the execution of structural reforms under the MFA mechanism and activating investment guarantees to mobilize additional domestic and foreign investments into the Egyptian economy.
Timeline of Key Milestones
March 2024
The Egypt–EU Summit was held in Cairo, chaired by H.E. President Abdel Fattah El-Sisi and H.E. Ms. Ursula von der Leyen, President of the European Commission, with the participation of the Heads of Government of Belgium, Greece, Cyprus, and Italy. The summit marked the elevation of relations to a Comprehensive Strategic Partnership and the announcement of a €7.4 billion financing package.
This strategic partnership focuses on 6 key pillars: strengthening political relations; supporting economic stability; promoting investment and trade; developing migration and mobility frameworks; supporting regional security; and enhancing human development through education and capacity building.
April 2024
The Ministry of Planning, Economic Development & International Cooperation launched intensive coordination meetings with national authorities and the European Commission to activate the economic pillar of the Strategic Partnership, with a particular focus on structural reforms under the MFA mechanism and the activation of investment guarantees.
May 2024
The Ministry received a high-level mission from various departments of the European Commission. Meetings were held with 13 national entities to discuss the proposed reform policies, implementation procedures, and the structural reform matrix regarding the economic pillar.
June 2024
The Egypt–EU Investment Conference was held with the participation of H.E. President Abdel Fattah El-Sisi and H.E. Ms. Ursula von der Leyen. The conference witnessed the signing of the Memorandum of Understanding for the first phase of the Macro-Financial Assistance (MFA) worth €1 billion. It also saw the signing of a number of private-sector investment agreements and development financing arrangements across priority sectors with European financial institutions.
September 2024
The Ministry continued close coordination with national entities and the European Commission to advance the implementation of the agreed reform agenda under Phase I of the MFA, aimed at enhancing macroeconomic stability.
November 2024
Egypt received a high-level mission from the European Commission to review the implementation of the structural reform agenda following the completion of the first phase of the MFA.
December 2024
The House of Representatives held a plenary session attended by H.E. Dr. Rania Al-Mashat to discuss the MFA MoU, which was approved after extensive deliberations.
Before the end of the month, the Minister of Planning, Economic Development & International Cooperation announced the European Commission’s approval to disburse the first phase of the MFA, amounting to €1 billion, following successful progress in implementing the agreed reform measures. Egypt officially received the €1 billion to bolster national efforts for macroeconomic stability.
May 2025
The Ministry received a high-level mission from the European Commission to agree on the final version of the structural reform policies and procedures for the second phase of the MFA.
January 2025 - June 2025
The Ministry negotiated 87 structural reform policies and procedures related to the economic pillar of the second phase. These involved 14 Egyptian entities according to the timelines set for three payments: first payment (Dec 2025): €1 billion, second payment (June 2026): €1.5 billion, and third payment (June 2026): €1.5 billion.
June 2025
Egypt and the European Union announced the activation of the €1.8 billion Investment Guarantee Mechanism during the “Development Finance to Foster Private Sector-Led Growth & Jobs” Conference, organized by the Ministry. The Ministry subsequently intensified engagement with European and international financial institutions to maximize the utilization of these guarantees in order to increase domestic and foreign investments.
September 2025
The Ministry continued consultations with the European Union regarding the 2025–2027 cooperation framework, aiming to align national priorities for the allocation of €600 million in development grants under the Strategic Partnership.
October 2025
As relations continued to deepen, the first-of-its-kind Egypt–EU Summit was held in Brussels. It featured high-level discussions on various fields, including the economic pillar and European investment opportunities in Egypt. The summit witnessed the signing of the MoU for the second phase of the Macro-Financial Assistance, worth €4 billion.
November 2025
A high-level European Commission mission visited Egypt to review the implementation of the structural reform agenda in light of completing the requirements for the first payment of the MFA’s second phase.
December 2025
Completion of final procedures to obtain the first tranche of the second phase, following the conclusion of negotiations and the implementation of agreed reforms.
January 2026
Receipt of the first tranche of the second phase, valued at €1 billion.