H.E. Dr. Rania Al-Mashat Discusses with the European Parliament Vice-President the Second Phase of the Macro-Financial Assistance Mechanism Worth €4 Billion, Investment Promotion Policies, and Empowering the Private Sector

H.E. Dr. Rania Al-Mashat Discusses with the European Parliament Vice-President the Second Phase of the Macro-Financial Assistance Mechanism Worth €4 Billion, Investment Promotion Policies, and Empowering the Private Sector

The meeting discusses macroeconomic support policies and empowering the private sector within the framework of the second phase of the MFA mechanism.

H.E. Dr. Al-Mashat: "2024 marked a turning point in the development of the Egypt-EU strategic partnership."

Structural reforms implemented by the government have reinforced macroeconomic stability.

Strengthening the partnership with the European Union to activate the €1.8 billion investment guarantee mechanism.

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, met with Mrs. Céline Emard, Member of the European Parliament and Rapporteur of the second tranche of the Macro-Financial Assistance (MFA) package at the European Parliament's International Trade Committee. They discussed various aspects of the partnership between Egypt and the European Union, particularly the second phase of the MFA mechanism to support budget deficits and enhance cooperation with the EU to finance renewable energy programs.

At the beginning of the meeting, H.E. Dr. Al-Mashat welcomed Mrs. Emard, explaining that the previous year had been a pivotal one for Egyptian-European cooperation. Key developments included the convening of the Egypt-EU summit, the issuance of the joint declaration elevating the partnership, the approval of a €7.4 billion financial package, and the receipt of the first tranche of the MFA mechanism, valued at €1 billion.

H.E. Dr. Al-Mashat reviewed the structural reforms implemented by the government over the past year, which have contributed significantly to strengthening macroeconomic stability, supporting resilience amid regional and global challenges, and boosting business confidence in the Egyptian economy. These reforms have also facilitated the private sector’s involvement in leading development efforts. The discussion also covered the second phase of the MFA mechanism, worth €4 billion, focusing on macroeconomic support policies, stimulating private sector participation, and encouraging green investments.

The Minister highlighted the positive developments in GDP growth during the first quarter of the current fiscal year, which reached 3.5%, compared to 2.65% in the corresponding quarter of the previous year. She explained that the government’s actions over the past year, including the implementation of a clear economic and structural reform program, have supported growth and recovery in key sectors such as manufacturing, transport and storage, and information and communications technology.

H.E. Dr. Al-Mashat affirmed that cooperation between Egypt and the EU is a crucial element of Egypt’s efforts to achieve sustainable development and enhance regional stability. This collaboration strengthens both cultural and economic ties, contributing to a better future for citizens and making the EU partnership a strategic priority for Egypt.

The Minister also discussed key areas of cooperation under the current programs, funded through blended financing, which supports various sectors including transport, water, agriculture, SMEs, renewable energy, social protection, governance, civil society, and capacity building. She emphasized that the strategic partnership framework between Egypt and the EU defines the priorities and strategic goals that guide the cooperation efforts, aligning with Egypt’s national priorities, addressing emerging needs, and fostering a future-oriented, cohesive collaboration.

H.E. Dr. Al-Mashat further addressed the European financial package within the strategic partnership, which is distributed according to six shared priorities: enhancing political relations, reinforcing economic stability, promoting investment and trade, improving migration and mobility frameworks, strengthening security, and advancing human-centered initiatives such as skills development and education.

She also noted the €1.8 billion investment guarantees under the European Fund for Sustainable Development Plus (EFSD+), which are part of the €7.4 billion financial package. These guarantees are expected to have a positive impact on investment rates in Egypt, particularly in priority sectors of mutual interest, such as renewable energy.

The Ministry of Planning, Economic Development, and International Cooperation is working to maximize the benefits of these investment guarantees, educating national entities and the private sector on how to leverage these opportunities to effectively set priorities.