The European Parliament has approved substantial financial aid packages for Egypt and Jordan, amounting to €4 billion and €500 million respectively, in a move aimed at reinforcing economic stability and supporting key reforms in both nations. The decision was made during a vote on April 1, 2025. The package for Egypt received 452 votes in favor, 182 against, and 40 abstentions. It follows a proposal issued by the European Commission on March 15, 2024, to offer Egypt up to €5 billion in macro-financial assistance.
This includes a €1 billion short-term loan already disbursed at the end of 2024 and a €4 billion loan to be distributed in three instalments. The EU Parliament has now approved the longer-term component of this support. The financial assistance to Egypt is intended to address balance-of-payments challenges, enhance macroeconomic stability, and support the government’s ongoing reform initiatives. The aid package is expected to be tied to progress on structural reforms, including improvements in public financial management and economic governance.
In a separate vote, the EU Parliament also approved a €500 million loan for Jordan with 571 votes in favor, 59 against, and 46 abstentions. This support is designed to assist Jordan in covering external financing needs and implementing structural reforms, particularly those aimed at fiscal consolidation and economic resilience. The European Commission emphasized that the aid to Jordan will help the country manage the impacts of external economic pressures while sustaining efforts to modernize its economy.
The macro-financial assistance forms part of the EU’s broader approach to supporting stability and reform in neighboring regions. Both Egypt and Jordan have previously received financial assistance from the European Union, often coordinated with International Monetary Fund (IMF) programs and conditioned on the implementation of specific economic policies. The EU’s macro-financial assistance tool is used to provide support to countries facing serious balance-of-payments difficulties, particularly those with close political and economic ties to the Union.
Disbursements under both aid packages will depend on the fulfillment of agreed policy conditions. These typically include commitments to good governance, public sector reforms, and improved regulatory environments that can foster private sector growth and long-term economic sustainability. The approval signals the European Union’s continued strategic interest in promoting stability and development in the Middle East and North Africa region, particularly in the face of ongoing regional challenges and global economic uncertainty. – By MENA Newswire News Desk.
