European Union Announces $8B Aid Package For Egypt

The EU on Sunday signed a major aid deal with Egypt to stem migrant flows to Europe. An aid package worth 7.4 billion-euro ($8 billion) including both grants and loans was announced for the cash-strapped Egypt. The agreement would be distributed over a span of four years and is partially intended to enhance border controls.

The proposed funding includes 5 billion euros ($5.45bn) in concessional loans and 1.8 billion euros ($1.96bn) of investments, according to a summary of the plan published by the EU. An additional 600 million euros ($654m) would be provided in grants, including 200 million euros ($218m) for managing migration issues.

The deal was signed during a visit by European Commission President Ursula von der Leyen and leaders of Belgium, Italy, Austria, Cyprus and Greece, reported Reuters.

"Your visit today represented a very important milestone in the relations between Egypt and the European Union," el-Sissi told visiting European leaders. He said the deal has achieved a "paradigm shift in our partnership".

Italian Prime Minister Giorgia Meloni, a key advocate for such agreements, lauded the EU-Egypt deal as an opportunity to offer "African residents" the chance "not to migrate" to Europe.

"The European Union recognizes Egypt as a reliable partner and its unique and vital geostrategic role as a pillar of security, moderation and peace in the Mediterranean, Near East and African region," a joint statement said after the summit, reported ABC News.

The agreement, referred to as the Joint Declaration, seeks, among other objectives, to advance "democracy, fundamental freedoms, human rights, and gender equality," as stated by the European Commission.

The EU leaders and el-Sisi also insisted on the need for a cease-fire in the Israel-Hamas war, with von der Leyen warning that inhabitants "face famine" in the war-torn Gaza Strip. "Gaza faces a famine and we cannot accept this," she said.

However, the deal also drew criticism from rights groups over Egypt's human rights record.

The agreement comes amidst growing apprehensions that Israel's planned ground offensive on Rafah, located in the southernmost part of Gaza, might lead to the displacement of hundreds of thousands of Palestinians into Egypt's Sinai Peninsula. With the Israeli military campaign in Gaza now entering its sixth month, more than a million people have already been displaced to Rafah.