Ministry of Planning, Economic Development and International Cooperation Receives Two European Commission Missions to Follow Up on Macro-Financial Assistance & Budget Support Mechanism, and Discuss Development Grant Files

Following the signing of the second phase agreement of the Macro-Financial Assistance (MFA) mechanism during the Egyptian-European Summit in Brussels, and within the continuous follow-up of implementing the Strategic Partnership agreement

Ministry of Planning, Economic Development and International Cooperation Receives Two European Commission Missions to Follow Up on Macro-Financial Assistance & Budget Support Mechanism, and Discuss Development Grant Files

 Egyptian-European discussions on structural reforms and the first tranche of the second phase of the Macro-Financial Assistance mechanism, worth €1 billion.

 €600 million in development grants within the Egyptian-European Strategic Partnership until 2027.

Following the signing of the agreement for the second phase of the Macro-Financial Assistance and Budget Support mechanism during the Egyptian-European Summit in Brussels, chaired by H.E. President Abdel Fattah El-Sisi, President of the Republic of Egypt, and H.E. Ms. Ursula von der Leyen, President of the European Commission, and within the framework the continuous follow-up of implementing the economic pillar of the Strategic Partnership Agreement between Egypt and the European Union, the Ministry of Planning, Economic Development and International Cooperation received two European Commission missions to conduct expanded discussions on structural reforms and ongoing development grant projects.

During the period from November 10-12, a high-level mission from the European Commission’s Directorate-General for Economic and Financial Affairs (DG ECFIN) is holding technical meetings with relevant authorities to discuss the policies, reforms, and procedures for the first tranche of the second phase of the Macro-Financial Assistance and Budget Support mechanism, worth €1 billion.

In this context, H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, reaffirmed the Ministry's keenness to follow up on the implementation of the Strategic Partnership between Egypt and the European Union, given the great importance of this partnership for both sides in achieving mutual interests on various levels. 

Dr. Al-Mashat noted that this partnership supports the state's efforts to continue the path of economic reform and enhance economic resilience in the face of external fluctuations.

The Minister of Planning, Economic Development and International Cooperation pointed out that the Macro-Financial Assistance and Budget Support (MFA) mechanism is part of a broader partnership between Egypt and the European Union based on trade and investment relations and supporting macroeconomic resilience. Dr. Al-Mashat mentioned that the second phase, worth €4 billion, followed continuous coordination between various national authorities on one hand and the European Commission on the other throughout the current year, to determine the proposed structural reform matrix, which includes 87 reforms within the National Structural Reform Program.

In another context, the Ministry of Planning, Economic Development and International Cooperation, with the participation of national authorities, is holding meetings with a mission from the European Commission's Directorate-General for Neighbourhood and Enlargement Negotiations (DG NEAR - Middle East and North Africa) during the period from November 9-13. This is part of the cooperation between Egypt and the European Union for the period 2026-2027 to discuss the priorities for allocating the development grants, worth €600 million, within the Comprehensive Strategic Partnership between the two sides.

Within the framework of development grants, a financing agreement for the program "EU Support for the Implementation of Social and Economic Reforms at the Local Level" was signed, valued at €75 million, under the Neighbourhood, Development and International Cooperation Instrument (NDICI – Global Europe). In addition, financial support from the European Union was announced for 2025 to promote sustainable development, enhance economic governance, support vocational and technical training, and enhance the skills needed for future jobs, valued at €110.5 million.

It is worth noting that, as part of the Comprehensive Strategic Partnership between Egypt and the European Union, a financing package of €7.4 billion was announced for the period 2024-2027, including €5 billion in concessional financing under the Macro-Financial Assistance and Budget Support mechanism, €1.8 billion in investment guarantees, and €600 million in development grants. Driven by the distinguished relations connecting the two sides, the recent period witnessed tangible progress in activating joint cooperation frameworks that serve mutual interests and support the achievement of stability and sustainable development following the EU-Egypt Summit held last October.