The meeting was attended by Dr. Mahmoud Esmat, Minister of Electricity and Renewable Energy; Dr. Osama El-Gohary, Assistant to the Prime Minister and Head of the Information and Decision Support Center (IDSC); as well as representatives from the Ministries of Labor, Investment and Foreign Trade, Water Resources and Irrigation, Environment, and Industry.
The meeting discussed the structural reform matrix for the economic component of the MFA, which is expected to be funded by the European Commission in the amount of €4 billion. The meeting aimed to reach a final consensus on the measures to be implemented by a number of Egyptian entities. This came in light of the European Parliament's meeting, where a majority of its members voted in favor of the final reading of the decision to grant Egypt the second tranche of financial support worth €4 billion, after negotiations that lasted for more than nine months. This confirms the depth of the economic relationship between Egypt and the European side and their agreement to support the Egyptian economy.
Dr. Rania Al-Mashat emphasized that this meeting comes within the framework of ongoing coordination between national authorities to implement the structural reform package planned for the second phase of the MFA and Budget Support Mechanism with the European Union (EU).
She pointed out that the second phase of the mechanism builds on the achievements of the first phase, which included budget support funding worth €1 billion, already obtained in December 2024. She highlighted the close and strong partnership between Egypt and the EU, which contributes to advancing development in Egypt, particularly through the Investment Guarantee Mechanism launched during the "Development Financing for Private Sector Empowerment: Economic Growth and Employment" conference held by the Ministry this week. This mechanism opens up prospects for foreign investment in Egypt by providing €1.8 billion in guarantees to the private sector.
She emphasized that the structural reforms implemented stem from a clear state vision and direction to enhance economic competitiveness, increase private sector participation, adopt policies and programs that attract investment, and simplify legislative and regulatory frameworks, thus creating a more attractive business climate for local and foreign investment.
The MFA and Budget Support Mechanism is part of the financial package announced during the Egypt-EU summit in March 2024, between President Abdel Fattah El-Sisi and European Commission President Ursula von der Leyen. The package amounts to €7.4 billion, including €5 billion in the MFA available until 2027, €1.8 billion in investment guarantees for the private sector, and €600 million in grants for various development sectors.
In
early December 2024, Dr. Rania Al-Mashat announced the European Commission's
approval to disburse the first phase of the agreement, worth €1 billion,
following the European Commission's approval and the completion of all
procedures. On December 27, 2024, Egypt received the first tranche.
It's worth noting that the European Council is expected to vote on the decision in the coming days, paving the way for the disbursement of the second tranche. This will enhance the Egyptian economy's resilience in the face of growing international and regional challenges and enable the Egyptian government to implement its ambitious development and economic programs.