EU confirms June payout of 4 billion euros in aid to Egypt: Source

The Egyptian government has secured confirmation that the second tranche of a European Union macro-financial assistance package will be disbursed in June. The payment, worth 4 billion euros, was approved by both the European Parliament and the European Commission, according to a government source familiar with Egypt’s external financing file.

The funding comes as part of a broader Egypt-EU strategic partnership announced in March, totaling 7.4 billion euros. That package includes 5 billion euros in concessional loans, 1.8 billion euros in direct investment, and 600 million euros in grants, with 200 million earmarked for managing migration challenges.

Earlier this year, Prime Minister Mostafa Madbouly announced that Egypt had received the first tranche of the financial assistance—1 billion euros—under the EU’s Macro-Financial Assistance (MFA) program. This tranche marks the beginning of a larger 5 billion euro financial support line expected to be rolled out through 2027.

The same official, who requested anonymity, said Egypt has formally asked the EU to expedite disbursement of the second tranche to help shore up its economy amid regional and global pressures. These include the ongoing Israeli war on Gaza and intensified trade tensions between the United States and China, compounded by new U.S. tariffs affecting Egypt among other nations.

Elena Flores, the European Commission’s Director-General for Economic and Financial Affairs, is expected to visit Cairo in May to review Egypt’s progress on agreed structural reforms before the funds are released.

According to the source, the government has already begun implementing several of these reforms, including enforcing the Unified Public Finance Law to cap public debt, expanding social safety nets, digitizing payroll tax collection, and drafting a plan to eliminate certain tax exemptions for state-owned enterprises.

Flores is also expected to discuss potential EU investments in priority sectors such as green hydrogen, renewable energy, agri-processing, infrastructure, and pharmaceuticals. The talks will also cover government incentives for foreign investors.

In early April, the European Parliament approved the 4 billion euro macro-financial assistance loan by a vote of 452 to 182, with 40 abstentions.

Last Sunday, Prime Minister Madbouly urged Germany to support the rapid approval and disbursement of the second tranche during a meeting with German Ambassador to Cairo Jürgen Schulz. The request comes ahead of trilateral consultations in May between the European Commission, the European Council, and the European Parliament.