Macro-financial assistance to Egypt

The European Parliament adopted by 386 votes to 132, with 49 abstentions, a legislative resolution on the proposal for a decision of the European Parliament and of the Council on providing macro-financial assistance to the Arab Republic of Egypt.

Parliament adopted its position at first reading following the ordinary legislative procedure by amending the proposal as follows:

Macro-financial assistance

The Union will provide Egypt with macro-financial assistance, in the form of loans, of up to EUR 4 billion to support the stabilisation of its economy and a substantive reform programme. The Union’s macro-financial assistance shall contribute to covering Egypt’s balance-of-payments needs as identified in the IMF programme.

The macro-financial assistance will be made available for a period of two and a half years from the day following the date of entry into force of the Memorandum of Understanding concluded between the EU and the Egyptian authorities.

The financial terms of the EU's macro-financial assistance will be set out in a loan agreement to be concluded between the Commission and the Egyptian authorities. Egypt shall repay the loan, which shall be granted on terms that allow its repayment over a long period, including a possible grace period. The maximum duration of the loan is 35 years.

Economic policy conditions and financial conditions

The economic policy conditions and financial conditions agreed with the Egyptian authorities are intended, in particular, to strengthen the efficiency, transparency and accountability of Egypt's public financial management systems, including for the use of the Union's macro-financial assistance.

Progress in mutual market opening, including for small and medium-sized enterprises, the development of rule-based and fair trade, sustainable development, good governance and other priorities in the context of the Union’s external policy shall also be duly taken into account when designing the policy measures.

Implementation report

In an annual report to Parliament and the Council, the Commission will examen progress, assess Egypt's economic prospects and evaluate the impact of the loans on the economic and budgetary situation. The report should also contain information on concrete, tangible and credible measures taken by Egypt towards respecting effective democratic mechanisms, including a multi-party parliamentary system, and the rule of law, and guaranteeing respect for human rights.