– The European Union pledges 1 billion euros ($1.07 billion) in short-term financial aid to Egypt to support its economy.

– This aid is part of a larger package of 5 billion euros in loans, with an additional 4 billion euros scheduled for longer-term assistance from 2024 to 2027.- Egypt is required to demonstrate tangible progress in upholding democratic principles and respecting human rights as a precondition for receiving financial support.

The European Union has committed to providing Egypt with 1 billion euros ($1.07 billion) in financial assistance to support the country’s economy, according to media reports.

This aid is part of a broader initiative aimed at stabilizing Egypt’s economic situation, which has been impacted by persistent foreign currency shortages and other challenges.

Last month, Egypt entered into a comprehensive support program with the International Monetary Fund, totaling $8 billion, and secured a significant agreement with the EU aimed at enhancing cooperation and addressing migration issues. 

The short-term aid package of 1 billion euros forms part of a larger 5 billion euro loan package. Additionally, there are plans for an additional 4 billion euros in longer-term assistance spanning from 2024 to 2027, pending approval from the EU’s 27 member states.

The financial support is intended to help Egypt address its fiscal challenges, particularly in the wake of recent events such as the Gaza conflict, attacks by Houthi forces in the Red Sea, and the fallout from Russia’s aggression against Ukraine, Reuters reported.

However, the aid comes with conditions. Egypt must demonstrate a commitment to upholding democratic principles, including the establishment of effective democratic mechanisms such as a multi-party parliamentary system, adherence to the rule of law, and respect for human rights.