Al-Mashat: EU's recent MFA plays critical role in driving reforms

Egypt Today

2 days ago

Cairo – June 3, 2025: Negotiations are underway over structural reforms linked to the economic component of Egypt's national program, supported by the European Union's €4 billion Macroeconomic Financial Assistance (MFA).
Minister of Planning, Economic Development, and International Cooperation (MPEDIC), Rania Al-Mashat, highlighted the critical role of the MFA in driving these reforms and pointed to the forthcoming launch of a €1.8 billion EU-backed investment guarantee mechanism.
Al-Mashat met with Ambassador Angelina Eichhorst, Head of the EU Delegation to Egypt, along with senior EU officials, to discuss ongoing cooperation under the strategic partnership between Egypt and the EU.
These reforms, involving multiple Egyptian entities, focus on enhancing macroeconomic stability, boosting competitiveness, improving the business environment, and advancing green transformation. They form a key part of Egypt's wider development narrative aimed at sustainable economic growth.
This initiative aims to expand foreign direct investment opportunities and support private sector development across Egypt.
She also addressed the 'Mediterranean Charter,' which signals a strategic evolution in the EU's approach to southern neighbors. The Charter shifts focus from broad regional frameworks to more targeted bilateral partnerships, aligning with Egypt's national priorities in economic development, energy, transportation, job creation, and regional stability.
The Charter is built on two main pillars: fostering economic stability and investment, and encouraging European companies to expand in southern neighboring countries. This approach is expected to facilitate technology transfer, boost trade, and accelerate economic growth throughout Egypt and the wider region.
Between 2025 and 2027, Egypt and the EU will implement a new cooperation framework as part of their comprehensive strategic partnership. This framework emphasizes clear priorities and actionable measures to enhance collaboration.
The European Union remains one of Egypt's most important development partners, with the current cooperation portfolio reaching approximately €1.3 billion. This includes grants and blended finance supporting vital sectors such as transport, water, agriculture, renewable energy, social protection, governance, and institutional capacity building.
Al-Mashat noted that the strategic partnership framework enhances policy alignment and cooperation in response to evolving regional and global challenges, reaffirming the EU's commitment to supporting Egypt's sustainable development goals.