Egypt Receives €1B from EU After Completing 16 Reforms

Egypt just proved that committed reform pays off, receiving €1 billion from the European Union after completing 16 major structural changes to its economy and environment.

Dr. Rania Al-Mashat, Egypt's Minister of Planning, Economic Development, and International Cooperation, announced the funding this week. The money comes from the EU's Macro-Financial Assistance program, which ties funding to actual results.

Egypt worked across seven government ministries to complete the reforms. The changes focused on three main areas: strengthening financial management and public investment, improving business conditions for investors, and advancing green energy initiatives.

The green reforms include better water resource management, waste-to-energy policies, improved energy efficiency, and protection of the Red Sea's natural ecosystems. These changes support Egypt's transition to a sustainable economy while creating jobs and opportunities.

This marks Egypt's second tranche of EU funding in under two months. The country received its first €1 billion in January 2025 after completing 22 other reform measures.

The Ripple Effect

The partnership between Egypt and the EU shows how international cooperation can drive meaningful change. By linking funding to specific, measurable reforms, the program ensures money goes toward real improvements that benefit everyday Egyptians.

The reforms are already making business easier. Streamlined investment licensing and better industrial land allocation mean companies can set up shop faster, creating more jobs for Egyptian workers.

Egypt has now completed 38 total reform measures under the partnership. Two more funding tranches worth €3 billion are scheduled for 2026, giving the country continued incentive to push forward with improvements.

Dr. Al-Mashat emphasized that this development financing comes at much better rates than borrowing from international markets. That means more government money can go toward development projects and programs that directly help citizens instead of paying high interest rates.

The €5 billion total partnership grew from a March 2024 agreement between Egyptian President Abdel Fattah El-Sisi and European Commission President Ursula von der Leyen. The first Egypt-EU Summit in Brussels formalized the program's second phase in October.

Egypt's success shows other nations that structural reform, while challenging, opens doors to significant international support and creates lasting economic benefits.