Dr. Rania A. Al-Mashat, Egypt’s Minister of Planning, welcomed Dubravka Šuica, the newly appointed EU Commissioner for Mediterranean Affairs, to Cairo for a key meeting that promises to bolster cooperation between Egypt and the European Union. This meeting, held on March 3, 2025, marked a significant milestone in the deepening of Egypt-EU ties, both politically and economically.
At the heart of the discussion was the establishment of the EU’s new position for Mediterranean Affairs, underscoring the Union’s commitment to strengthening relationships with Mediterranean countries. Minister Al-Mashat emphasized the importance of this move, highlighting how the post will pave the way for greater collaboration between the EU and Egypt, especially in addressing shared challenges such as sustainable development, green transformation, and economic stability.
“The creation of the post of ‘EU Commissioner for Mediterranean Affairs’ is a clear signal of the EU’s intent to deepen its partnership with Mediterranean nations,” Minister Al-Mashat remarked. “It highlights the region’s importance in Europe’s long-term vision for development, and Egypt, with its strategic geographic and political position, will play a pivotal role in advancing this shared agenda.”
The meeting also focused on ways to elevate Egypt’s role as a cornerstone in the Euro-Mediterranean partnership. Minister Al-Mashat emphasized that Egypt’s close ties with Mediterranean countries position it as a central player in reinforcing bilateral and regional ties across various sectors, including trade, politics, security, migration, and human development.
A New Phase in Economic and Investment Relations
The discussions also centered on economic and investment relations, which have seen significant growth in recent years. A major topic was the upcoming phase of development financing allocated under the strategic partnership between Egypt and the EU, which will see 7.4 billion Euros invested between 2025 and 2027. These funds aim to stabilize Egypt’s economy, stimulate investment, and support key sectors critical to sustainable development, such as energy, infrastructure, and environmental projects.
“We are committed to working closely with national entities to ensure the European grants for the 2025-2027 period are aligned with Egypt’s national priorities,” Minister Al-Mashat said, stressing that the grants would be used to fund programs that have the greatest potential for long-term impact.
In addition to grants, the EU is also supporting Egypt through the Macro-Economic Support and Budget Support Mechanism. The first phase of this initiative, which received 1 billion Euros, has already played a crucial role in supporting Egypt’s economic reforms. The second tranche of this mechanism, amounting to 4 billion Euros, is set to be disbursed soon, providing critical funding for further structural adjustments.
Mobilizing Investments in Green and Sustainable Sectors
A major highlight of the discussions was the introduction of the Investment Guarantee Mechanism, a groundbreaking initiative that seeks to mobilize 5 billion Euros in investments, particularly in green sectors. This mechanism is part of the EU’s broader strategy to support the green transition and other priority areas that align with Egypt’s sustainable development goals.
The EU’s involvement in financing Egypt’s green transformation was further reinforced by its investment guarantees under the European Fund for Sustainable Development Plus (EFSD+), which amount to 1.8 billion Euros. These guarantees are designed to attract private sector investments into green and sustainable projects, such as renewable energy, waste management, and environmental conservation.
Minister Al-Mashat reiterated Egypt’s commitment to the green agenda, stating, “We are working with our European partners to create a robust platform that will catalyze investments in the sectors that matter most for our future—sustainability, green transformation, and innovation.”
Empowering the Private Sector and Strengthening Regional Cooperation
The Egyptian government’s ongoing efforts to empower the private sector were also a key focus of the meeting. The HAFIZ platform, an initiative that provides financial and technical support to a wide range of businesses, was discussed as a crucial tool for facilitating private sector participation in development projects. The platform supports large enterprises, small and medium-sized businesses, and startups, providing them with the resources necessary to thrive in Egypt’s evolving economy.
In terms of regional cooperation, both sides agreed that closer ties between Mediterranean countries were essential to addressing the challenges of the modern era. From navigating the digitalization of economies to advancing the green transition, Egypt is positioned to be a key partner in shaping the future of Mediterranean collaboration, particularly in sectors like artificial intelligence and digital innovation.
“Regional collaboration is essential to addressing shared challenges and ensuring that we are all able to move forward together, sustainably,” Minister Al-Mashat said, adding that strengthening relationships between Mediterranean countries would play a vital role in advancing economic stability and development across the region.
Looking Forward: A Shared Future
As Egypt and the European Union chart a course toward greater collaboration, the focus remains on building a shared future based on mutual development priorities, sustainable growth, and inclusive prosperity. With 7.4 billion Euros in development funds, a focus on green investment, and efforts to streamline the private sector’s involvement in the economy, the foundations for a new phase of Egyptian-European cooperation are being solidified.
“We are entering a new era of cooperation,” Minister Al-Mashat concluded. “Egypt and the EU are united in our vision for a prosperous, sustainable, and secure future for the Mediterranean and beyond.”
The meeting between Egypt and the EU is a promising step forward to shape the future of the region, with a particular focus on sustainable economic growth and the green transition.
