H.E. Dr. Rania Al-Mashat & European Union Discuss Strengthening Economic Partnership & Finalizing the Procedures for the 2nd of the Macro-Financial Assistance and Budget Support Mechanism

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, received Ambassador Angelina Eichhorst, Head of the European Union Delegation to Egypt, Mr. Francisco Joaquin, Senior Official for Cooperation with the Arab Republic of Egypt at the European Union's Directorate General for Cooperation with the Middle East and North Africa, Ms. Annika Eriksgard, Director-General for Economic and Financial Affairs at the European Commission, and several officials, as part of ongoing discussions to strengthen economic relations in light of the strategic partnership between Egypt and the European Union.

 

During the meeting, H.E. Dr. Rania Al-Mashat pointed to the ongoing coordination with various national entities and the convening of a ministerial coordination meeting with the participation of the relevant parties in order to implement structural reforms under the Macro-Financial Assistance and Budget Support Mechanism (MFA) worth €4 billion, where structural reform measures are being negotiated related to the economic component, to be implemented by several Egyptian entities within the national structural reform program, to enhance macroeconomic stability and resilience, support competitiveness, improve the business environment, and drive green transition. She explained that these reforms are part of the national narrative for economic development, which aims to achieve sustainable growth.

 

H.E. noted that the partnership between Egypt and the European Union contributes to advancing development efforts, especially through the Investment Guarantee Mechanism scheduled for launch in June, which will open wide avenues for foreign investments in Egypt by providing guarantees worth €1.8 billion to the private sector.

 

On another note, H.E. Dr. Rania Al-Mashat affirmed that the “Mediterranean Charter” is a strategic development in the European Union’s approach toward the South, as it shifts from focusing on broad regional frameworks such as the “Union for the Mediterranean” to building more specific and impactful bilateral partnerships with neighboring countries, explaining that this European approach towards bilateral agreements is fully aligned with Egypt’s national priorities and enhances opportunities to deepen strategic partnerships with European countries in key sectors such as economic development, investment, energy, transport, job creation, and promoting security and stability.

 

Furthermore, H.E. Dr. Al-Mashat pointed out that the first pillar of the Charter, which is strategic bilateral partnerships that focus on enhancing economic stability, attracting investments, and expanding cooperation opportunities in the fields of energy, transport, security, and employment, which are key pillars of Egypt’s development agenda,  highlighting the second pillar, which aims to encourage European companies to expand in southern neighboring countries, opening new avenues for technology transfer, enhancing trade, and driving economic development in Egypt and the region.

 

Regarding the strategic and comprehensive partnership between Egypt and the European Union, Al-Mashat stated that the period from 2025 to 2027 will witness the implementation of a new cooperation framework under the strategic and comprehensive partnership between Egypt and the EU, based on a structured process based on a set of pillars to clearly defining and practically implementing priorities.

 

Regarding the ongoing cooperation portfolio between Egypt and the European Union, Dr. Al-Mashat emphasized the strategic position of the EU as one of Egypt’s most important development partners, given its significant role in supporting the implementation of priority projects in vital sectors, noting that the current cooperation portfolio amounts to approximately €1.3 billion, including grants and blended financing, affirming the continued constructive cooperation within the framework of blended finance programs, which cover important areas such as transport, water, agriculture, small and medium enterprises, renewable energy, social protection, governance, civil society, and institutional capacity building.

 

H.E. also indicated that the signing of the strategic and comprehensive partnership between Egypt and the EU established an integrated framework that defines shared priorities and enhances the consistency of bilateral policies in light of regional and international changes.