Egypt is set to receive €1 billion from the European Union this Thursday under the Macro-Financial Assistance mechanism, after implementing 16 economic and structural measures under the National Structural Reform Program. Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat announced this at a joint press conference with European Investment Bank Vice President Gelsomina Vigliotti.
Rania Al-Mashat, Egypt's Minister of Planning, Economic Development and International Cooperation, announced that the country will receive a €1 billion disbursement from the European Union this Thursday as part of the second phase of the Macro-Financial Assistance (MFA) mechanism, totaling €5 billion overall. This follows the signing of a Memorandum of Understanding at the Egyptian-European Summit in Brussels on October 22, 2025, and comes after a previous €1 billion tranche in January 2025.
The Egyptian government has completed 38 reforms to date, including 22 measures tied to the first disbursement and 16 recent ones involving coordination between the Central Bank of Egypt and ministries of Finance, Investment, and Electricity to enhance public financial management and streamline investment licensing. Key fiscal reforms include bolstering domestic revenue mobilization, activating amendments to the Public Finance Management Law, and adopting a Medium-Term Budget Framework through a formal coordination protocol.
In the green transition, the government issued a Prime Ministerial decision on fees for non-agricultural groundwater extraction, along with ministerial guidelines for drilling and operating wells. It also approved a revised feed-in tariff for waste-to-energy projects, designated the Red Sea's marine ecosystem as a protected area, and expanded the Cabinet's Energy Planning Unit to cover strategic planning.
Social protection efforts expanded the Takaful and Karama cash transfer programs to 4.7 million households by late 2024, increased microfinance initiatives, and launched the 'Mehany 2030' electronic platform to build youth skills and support the shift from informal to formal employment. Al-Mashat stated: 'These reforms reflect the European Union's confidence in Egypt's national program and its support for the state's efforts to boost financial stability'.
With €3 billion remaining in two tranches throughout 2026, the funding offers broader fiscal space for social protection, health, and education spending while easing short-term financial pressures through concessional terms.