Egypt receives €1bn from EU as reward for economic reforms progress

European Council President Antonio Costa (left) and Commission President Ursula von der Leyen (right) with Egyptian President Abdel Fatteh El-Sisi at an EU-Egypt summit in October. (European Union)
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Updated 16 January 2026
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Egypt receives €1bn from EU as reward for economic reforms progress

  • Payment is the 2nd installment of a €5bn macro-financial assistance loan package agreed in 2024
  • European Commission President Ursula von der Leyen says it reflects Cairo’s efforts to build a stronger economy

LONDON: Egypt received €1 billion ($1.16 billion) from the EU on Thursday. The payment, designed to help boost the country’s financial stability, is part of a €5 billion macro-financial assistance package agreed in 2024.

The transfer was made after Egypt implemented a range of economic reforms, including improvements to public financial management and the foreign exchange market, the European Commission said.

The money is intended to help Egypt cover part of its financing needs, ensure economic stability, and support the country's economic reform agenda.

The €5 billion in macro-financial assistance, part of a broader €7.4 billion package, comes in the form of concessional loans that Egypt will have 35 years to repay. Thursday’s payment was the second, after an initial €1 billion was disbursed in December 2024. The remaining €3 billion is expected to be paid in two further installments this year.

Rania Al-Mashat, Egypt’s minister of planning, economic development and international cooperation, said the funding reflected the depth of Egyptian-European relations.

The financing package is directly linked to Egypt’s program of reforms designed to unlock the country’s economic potential, she added.

European Commission President Ursula von der Leyen said the latest payment “shows both the EU’s commitment to this partnership and Egypt’s efforts to build a stronger and greener economy.”

The commission said Egypt had fulfilled all the required conditions for the disbursement of funds, including that it remains on track with the requirements of an International Monetary Fund program. The IMF last month said it had reached an agreement with Egypt for reviews of that program, which could unlock about $2.5 billion.

Egypt secured an expanded $8 billion IMF package in March 2024, contingent on the country carrying out economic reforms.

The Egyptian economy has stabilized following a financial crisis in 2023 and 2024 that led to the devaluation of the Egyptian pound, a severe shortage of foreign exchange, and record-high inflation.


Gaza’s Rafah border crossing has reopened but few people get through

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Gaza’s Rafah border crossing has reopened but few people get through

  • Restrictions negotiated by Israeli, Egyptian, Palestinian and international officials meant that only 50 people would be allowed to return to Gaza each day
  • Amid confusion around the reopening, the Rafah crossing was closed Friday and Saturday

KHAN YOUNIS, Gaza Strip: When the Rafah border crossing between Gaza and Egypt finally reopened this week, Palestinian officials heralded it as a “window of hope” after two years of war as a fragile ceasefire deal moves forward.
But that hope has been sidetracked by disagreements over who should be allowed through, hourslong delays and Palestinian travelers’ reports of being handcuffed and interrogated by Israeli soldiers.
Far fewer people than expected have crossed in both directions. Restrictions negotiated by Israeli, Egyptian, Palestinian and international officials meant that only 50 people would be allowed to return to Gaza each day and 50 medical patients — along with two companions for each — would be allowed to leave.
But over the first four days of operations, just 36 Palestinians requiring medical care were allowed to leave for Egypt, plus 62 companions, according to United Nations data. Palestinian officials say nearly 20,000 people in Gaza are seeking to leave for medical care that they say is not available in the war-shattered territory.
Amid confusion around the reopening, the Rafah crossing was closed Friday and Saturday.
Hours of questioning
The Rafah crossing is a lifeline for Gaza, providing the only link to the outside world not controlled by Israel. Israel seized it in May 2024, though traffic through the crossing was heavily restricted even before that.
Several women who managed to return to Gaza after its reopening recounted to The Associated Press harsh treatment by Israeli authorities and an Israeli-backed Palestinian armed group, Abu Shabab. A European Union mission and Palestinian officials run the border crossing, and Israel has its screening facility some distance away.
Rana Al-Louh, anxious to return two years after fleeing to Egypt with her wounded sister, said Israeli screeners asked multiple times why she wanted to go back to Gaza during questioning that lasted more than six hours. She said she was blindfolded and handcuffed, an allegation made by others.
“I told them I returned to Palestine because my husband and kids are there,” Al-Louh said. Interrogators told her Gaza belonged to Israel and that “the war would return, that Hamas won’t give up its weapons. I told him I didn’t care, I wanted to return.”
Asked about such reports, Israel’s military replied that “no incidents of inappropriate conduct, mistreatment, apprehensions or confiscation of property by the Israeli security establishment are known.”
The Shin Bet intelligence agency and COGAT, the Israeli military body that handles Palestinian civilian affairs and coordinates the crossings, did not respond to questions about the allegations.
The long questioning Wednesday delayed the return to Gaza of Al-Louh and others until nearly 2 a.m. Thursday.
Later that day, UN human rights officials noted a “consistent pattern of ill-treatment, abuse and humiliation by Israeli military forces.”
“After two years of utter devastation, being able to return to their families and what remains of their homes in safety and dignity is the bare minimum,” Ajith Sunghay, the agency’s human rights chief for the occupied Palestinian territories, said in a statement.
Numbers below targets

Officials who negotiated the Rafah reopening were clear that the early days of operation would be a pilot. If successful, the number of people crossing could increase.
Challenges quickly emerged. On the first day, Monday, Israeli officials said 71 patients and companions were approved to leave Gaza, with 46 Palestinians approved to enter. Inside Gaza, however, organizers with the World Health Organization were able to arrange transportation for only 12 people that day, so other patients stayed behind, according to a person briefed on the operations who spoke on condition of anonymity because they were not authorized to speak to the media.
Israeli officials insisted that no Palestinians would be allowed to enter Gaza until all the departures were complete. Then they said that since only 12 people had left Gaza, only 12 could enter, leaving the rest to wait on the Egyptian side of the border overnight, according to the person briefed on the operations.
Crossings picked up on the second day, when 40 people were allowed to leave Gaza and 40 to enter. But delays mounted as many returning travelers had more luggage than set out in the agreement reached by negotiators and items that were forbidden, including cigarettes and water and other liquids like perfume. Each traveler is allowed to carry one mobile phone and a small amount of money if they submit a declaration 24 hours ahead of travel.
Each time a Palestinian was admitted to Egypt, Israeli authorities allowed one more into Gaza, drawing out the process.
The problems continued Wednesday and Thursday, with the numbers allowed to cross declining. The bus carrying Wednesday’s returnees from the crossing did not reach its drop-off location in Gaza until 1:40 a.m. Thursday.
Still, some Palestinians said they were grateful to have made the journey.
As Siham Omran’s return to Gaza stretched into early Thursday, she steadied herself with thoughts of her children and husband, whom she had not seen for 20 months. She said she was exhausted, and stunned by Gaza’s devastation.
“This is a journey of suffering. Being away from home is difficult,” she said. “Thank God we have returned to our country, our homes, and our homeland.”
Now she shares a tent with 15 family members, using her blouse for a pillow.