$10 billion.. The European Union accelerates plan to support Egypt

The European Union is trying to accelerate efforts to deepen its relationship with Egypt and help the country address the growing repercussions resulting from the conflict between Israel and Hamas on its borders.

Bloomberg reported, citing informed sources, that European Commission President Ursula von der Leyen is planning to visit Cairo soon to enhance efforts to support economic development in Egypt and mitigate the impact of the ongoing crisis.

The European Union was already exploring the partnership but now wants to accelerate these efforts given Cairo's strategic importance and concerns about increasing refugee flows, including from African countries such as Sudan.

Member states, including Germany and France, support the work being done, although the timeline and final numbers are still being worked out, the sources said on condition of anonymity because the discussions are private.

6 priorities

The plan will include 6 priorities ranging from the economy, investments, immigration, and security. On the economic front, the European Union wishes to explore options with member states to help Egypt address its heavy debt burden.

In addition, the European Union will propose an investment plan aimed at mobilizing 9 billion euros ($9.8 billion) in the sectors; digital, energy, agriculture and transportation, which will be interspersed with an investment forum planned for next spring.

The plan also seeks to limit illegal immigration to Europe by assisting Egypt in border management and anti-smuggling and voluntary return procedures.

The European Commission declined to comment.

After signing a partnership with Tunisia to stop the arrival of immigrants and support its economic development, the Commission has been working on a broader agreement with Egypt during the past months, given its importance as the largest Arab country in terms of population and the largest economy in North Africa.

And the financially strapped economy is facing the worst economic crisis in decades, with credit ratings reaching an undesirable level, a delay in the review of the program with the International Monetary Fund and a severe shortage of foreign currency. And Egypt has devalued its currency 3 times since early 2022, with inflation rising and the pound losing nearly half its value.

Von der Leyen may face some tough conversations about Israeli operations in Gaza, especially after she was criticized during her trip to Israel last month for not speaking strongly enough about the need to protect Palestinian civilians.

The head of the Commission spoke with Egyptian President Abdel Fattah al-Sisi at the beginning of this month to discuss the situation in the Middle East and the humanitarian situation in Gaza. And the Egyptian president hosted a conference on the Gaza crisis last month.