EU approves €1.5 bn aid tranche for Egypt under €5 bn support package

The European Commission announced a transfer of €1.5 billion to Egypt on 24 July 2026, marking the second installment of a €4 billion loan that forms part of a broader €5 billion assistance package for Cairo. The first €1 billion of the second tranche was disbursed in January 2026, while the initial €1 billion tranche of the overall program was paid in 2024.

The funds are intended to help Egypt cope with economic pressures linked to the Middle‑East conflict, bolster its state budget, and support macro‑economic stability in line with reforms agreed with the International Monetary Fund. The EU tied the assistance to specific conditions, including progress on democratic governance, rule of law, and human‑rights measures.

The transfer is framed as part of a strategic and comprehensive partnership between the EU and Egypt established in March 2024, which also includes investment guarantees and technical assistance. Egypt hosts roughly one million refugees from regional crises, a factor highlighted by Brussels. Human‑rights organisations have criticised the partnership, citing ongoing repression of dissent and restrictions on civil liberties under President Abdel Fattah al‑Sisi.