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EU announces 8 billion package for Egypt

The agreement, elevating the EU's relationship with Egypt to a 'strategic partnership,' has faced criticism from rights groups.

by Kanishka
March 18, 2024
in World
Reading Time: 3 mins read
EU announces 8 billion package for Egypt
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EU-Egypt Partnership: Aid and Cooperation on Migration

The European Union has unveiled a 7.4 billion-euro ($8.06 billion) aid package and an enhanced partnership with Egypt, as part of a fresh agreement aimed at curbing migrant flows to Europe, a move condemned by rights organizations.

The agreement is set to be ratified during an upcoming visit on Sunday, where European Commission President Ursula von der Leyen will meet with leaders from Belgium, Italy, Austria, Cyprus, and Greece, as confirmed by officials.

Ahead of the signing ceremony, Egyptian President Abdel Fattah el-Sisi held separate meetings with von der Leyen and other European leaders.

The aid package comprises grants and loans over the next three years, as the EU elevates its relationship with the Arab world’s most populous nation to a “strategic partnership.”

European Commission President Ursula von der Leyen, right, and Egypt's President Abdel Fattah el-Sisi

Funding Breakdown and Shared Goals

Outlined in the plan summary released by the EU, the proposed funding entails 5 billion euros ($5.45 billion) in concessional loans and 1.8 billion euros ($1.96 billion) in investments. Additionally, 600 million euros ($654 million) would be allocated in grants, with 200 million euros ($218 million) designated for addressing migration challenges.

According to a statement from El-Sisi’s office, the agreement with the EU aims to enhance cooperation and coordination between the two parties, striving to achieve shared interests.

Egypt’s economic instability has prompted many individuals to migrate from the Arab nation, leading Europe to seek ways to reduce migration from Egypt and other North African countries.

Egypt’s Stability Concerns Amid Economic Challenges

However, European governments express concerns about the potential repercussions of escalating instability in Egypt, where efforts to secure foreign currency are challenging, and inflation rates are nearing record highs.

Earlier this month, Egypt secured a landmark investment deal with the United Arab Emirates, expanded its loan program with the International Monetary Fund (IMF), and implemented a significant devaluation of its currency.

Against the backdrop of mounting apprehensions about Israel’s potential ground offensive on Gaza’s southern town of Rafah, which could prompt hundreds of thousands of Palestinians to seek refuge in Egypt’s Sinai Peninsula, the deal has gained significance. The Israeli offensive on Gaza, currently in its sixth month, has already driven over a million individuals to Rafah.

Egypt’s Migration Dynamics and Political Landscape

Egypt reports a migrant population of nine million, which includes approximately 480,000 registered refugees and asylum seekers under the United Nations’ refugee agency. Many of these migrants have established businesses, while others contribute to the extensive informal economy, working as street vendors and house cleaners.

However, Egyptian officials argue that Cairo should be acknowledged for largely stemming irregular migration from its northern coast since 2016, despite an increase in Egyptians attempting to reach Europe via Libya. The EU is already offering assistance to mitigate these flows.

Over the past few months, there has been a notable surge in migrant arrivals on the Greek islands of Crete and Gavdos, with the majority originating from Egypt, Bangladesh, and Pakistan. This trend has raised concerns about the emergence of a new smuggling route in the Mediterranean.

Critics have condemned Western support for el-Sisi, who ascended to power ten years ago following the ousting of Egypt’s initial democratically elected leader.

A crackdown has ensnared dissidents spanning the political spectrum, while both the state and the military have tightened their grip on the economy. Business figures and analysts argue that this has hindered structural reforms called for by the IMF.

Migration Control vs. Human Rights

Supporters of El-Sisi argue that these security measures were necessary to stabilize Egypt and pave the way for providing social amenities such as housing and employment opportunities.

The EU asserts that its expanded partnership with Egypt aims to promote democracy and freedoms. However, its efforts to offer financial incentives in exchange for migration control have faced obstacles and criticism.

Human Rights Watch likened the plan to enhance ties with Egypt and provide new financing to previous flawed deals with Tunisia and Mauritania, accusing them of prioritizing migrant deterrence over addressing human rights abuses.

Amnesty International urged European leaders not to turn a blind eye to the human rights violations occurring in Egypt, insisting that clear benchmarks for human rights must be established.

Tags: EgyptEUHuman rightsMigration
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