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Al-Mashat discusses readiness for $3.4B EU budget support

Businessmen Team news 09 October 2025 02:24 PM
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Al-Mashat discusses readiness for $3.4B EU budget support

Minister of Planning and Economic Development and International Cooperation Dr. Rania Al-Mashat met with European Commission Director for Economic and Financial Affairs Annika Eriksgaard in Brussels on Thursday to discuss strengthening macro-financial stability and a key EU budget support mechanism.

The meeting, held on the sidelines of the second Global Gateway Forum in Brussels, focused on strengthening macro-financial stability and advancing the EU's budget support mechanism for Egypt.

Al-Mashat underscored the strong partnership between Egypt and the European Union, specifically in backing macroeconomic stability and implementing economic reform programs.

She highlighted the EU’s "Macro-Financial Assistance (MFA) and Budget Support" mechanism, under which the first tranche of one billion euros was disbursed last December. Discussions centred on preparing to sign a memorandum of understanding for the second phase of the MFA and Budget Support mechanism.

The Global Gateway Forum, held under the theme "Partnerships in a Geopolitical Age: Time for a New Strategic Dialogue," gathers high-level representatives from governments and the private sector to explore strategies for scaling up Global Gateway investments in partner countries.

The Minister explained that Egypt, in cooperation with the European Commission's Directorate-General for Economic and Financial Affairs and relevant Egyptian national bodies, has finalized a package of 87 key reforms for the second phase of the European Union's financial support mechanism.

Al-Mashat explained that the reforms were agreed upon during a series of intensive technical meetings with the European Commission's Directorate-General for Economic and Financial Affairs and relevant national Egyptian bodies. These measures are part of the National Structural Reforms Program and are slated for gradual implementation.

The Minister also presented the National Economic Development Narrative, describing it as a new, comprehensive reform program that moves beyond fiscal policy to include real economy sectors and a clear timeline for structural reforms aimed at empowering the private sector and boosting competitiveness.

She stated that the National Economic Development Narrative is based on the National Structural Reforms Program, which relies on three main pillars: macroeconomic stability through disciplined fiscal and monetary policies, enhancing competitiveness and improving the business and investment environment by removing administrative and structural hurdles, and supporting green transition and sustainable development in line with international environmental commitments.

Al-Mashat added that the Narrative integrates investment, industrial, trade, and operational policies, with a special focus on vital sectors like industry, tourism, agriculture, energy, and information and communication technology (ICT).

She noted that the Narrative acts as the overarching framework governing all reforms implemented under both the first and second phases of the European Union's Macro-Financial Assistance (MFA) mechanism. This ensures full integration between the EU-backed reforms and Egypt's national economic reform agenda.

The Minister also discussed the upcoming Egypt-EU Summit, slated for late October, stressing its importance as a "pivotal station" for advancing the comprehensive strategic partnership. She expects the summit to cover prospects for economic cooperation, investment, sustainable development, as well as food security, energy, and the green transition.