Arab News, CAIRO :
European leaders are expected to announce a 7.4 billion euro ($8.06 billion) funding package and an upgraded relationship with Egypt in Cairo on Sunday, part of a push to stem migrant flows across the Mediterranean that has been criticized by rights groups.
The agreement, which lifts the European Union’s relationship with Egypt to a “strategic partnership,” is designed to boost cooperation in areas including renewable energy, trade, and security while delivering grants, loans and other funding over the next three years to support Egypt’s faltering economy.
That funding is expected to include 5 billion euros in macro-financial assistance, 1.8 billion euros of investments and 600 million euros in grants, a senior EU commission official said.
The macro-financial assistance includes 1 billion euros in emergency funding to be delivered this year.
The remaining 4 billion euros will be subject to approval by the European parliament, the official said.
Most of the money is newly allocated and the funding was drawn up in close cooperation with the IMF, the official added.
European governments have long been worried about the risk of instability in Egypt, a country of 106 million people that has been struggling to raise
foreign currency and where economic adversity has pushed increasing numbers to migrate in recent years.
Inflation has been running close to record highs and many Egyptians say they struggle to get by.
Over the past month, however, the financial pressure on the government has eased as Egypt has struck a record deal for Emirati investment, expanded its loan program with the IMF, and sharply devalued its currency.
