EU gives Egypt $10B aid package

The European Union on Sunday announced a $10-billion (U.S.) aid package for cash-strapped Egypt as concerns mount that economic pressure and conflicts in neighbouring countries could drive more migrants to European shores.

The deal, which drew criticism from rights groups over Egypt’s human rights record, was signed Sunday afternoon in Cairo by Egyptian President Abdel Fattah el-Sissi and European Commission President Ursula von der Leyen.

The ceremony was attended by leaders of Belgium, Italy, Austria, Cyprus and Greece.

“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.”

The aid package includes both grants and loans over the next three years for the Arab world’s most populous country, according to the EU’s mission in Cairo. Most of the funds — $5.4 billion (U.S.) — are macro-financial assistance, according to a document from the EU mission in Egypt.

The mission said the two sides have promoted their co-operation to the level of a “strategic and comprehensive partnership,” paving the way for expanding Egypt-EU co-operation in various economic and non-economic areas.

“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.

Italy’s Prime Minister Giorgia Meloni, whose country played a major role in achieving the deal, lauded it as “historic.”