Egypt’s Minister of Planning, Dr. Rania Al-Mashat, hosted a high-level delegation from the European Commission, led by Mr. Stefano Sanino, Director-General of the Directorate-General for the Middle East and North Africa, and Ms. Annika Eriksson, Director of Financial and Economic Affairs at the European Commission. The meeting focused on exploring ways to enhance future cooperation and discussed the strategic partnership between Egypt and the European Union, particularly regarding the activation of the investment guarantee mechanism, consultations on the second phase of the macro-economic support mechanism and budget support, as well as other ongoing projects.
Strengthening Investment and Sustainable Development
At the start of the meeting, Dr. Al-Mashat emphasized the importance of the “Investment Guarantees for Development” mechanism, which aims to engage private sector actors and foster a more sustainable investment environment. This comes in the context of the EU’s allocation of €1.8 billion for investment guarantees within the European Fund for Sustainable Development Plus (EFSD+). Dr. Al-Mashat expressed Egypt’s readiness to maximize the benefits of these allocations to support sustainable development initiatives.
She also highlighted the ongoing Abu Qir Metro Project in Alexandria, which is jointly funded by the European Investment Bank, the French Development Agency, the Asian Infrastructure Investment Bank, and the European Bank for Reconstruction and Development, as part of the Nouwafi Program. This project aims to rehabilitate and upgrade the 22 km Abu Qir railway line to a high-frequency metro system, including the renovation of electrical and mechanical systems, the addition of metro stations, and the removal of level crossings, as well as the renovation of railway carriages.
Mediterranean Agreement and Horizon Europe Collaboration
Minister Al-Mashat reviewed the Mediterranean Charter, which represents a strategic shift in the EU’s approach to its southern neighborhood. This shift focuses on bilateral partnerships instead of regional frameworks such as the Union for the Mediterranean. While the Mediterranean region remains a strategic priority, there is a noticeable shift toward direct agreements between individual countries, with the charter focusing on two main pillars: bilateral strategic partnerships and regional cooperation.
Regarding the Horizon Europe Program for scientific research and technical support, both parties discussed ways to enhance cooperation regarding Egypt’s participation in the program. This would facilitate support opportunities and technical assistance to maximize national benefits and enhance collaboration on scientific and research initiatives, with a focus on human capital development and capacity building.
Strategic Partnership with the EU and Future Cooperation
Dr. Al-Mashat emphasized the strategic and comprehensive partnership between Egypt and the EU, marking a new phase of collaboration aimed at strengthening bilateral relations in various priority areas. She also pointed out that the Ministry of Planning and Economic Development is currently reviewing the cooperation framework for the period 2025–2027, in consultation with relevant ministries and stakeholders, to direct grants and funding towards key areas of cooperation between Egypt and the EU. This process will ensure that the funding aligns with national priorities and achieves maximum impact.
The Minister also reiterated the importance of the EU as a key strategic development partner, contributing to the implementation of priority projects across various sectors. The total current portfolio amounts to approximately €1.3 billion, which includes grants and mixed financing supporting vital sectors such as transport, water, agriculture, small and medium-sized enterprises (SMEs), renewable energy, social protection, governance, civil society, and capacity building.
Preparations for the Second Phase of Macro-Economic Support
Dr. Al-Mashat mentioned the total value of the first phase of financial assistance from the European Commission and confirmed that Egypt is currently preparing the necessary structural reforms, in collaboration with various entities, to pave the way for the second phase of the macro-economic support mechanism. This phase will focus on furthering Egypt’s economic stability and ensuring long-term development.
The meeting marked a significant step toward reinforcing the partnership between Egypt and the European Union, aiming to continue boosting bilateral cooperation, driving sustainable development, and creating a framework for future collaborative efforts.
