“Egypt and Europe are closer today than ever before, so this partnership is a real win-win for both Egypt and Europe,” von der Leyen said in a speech.
The agreement applies to the first tranche of a package totaling 7.4 billion euros that von der Leyen announced in March. At the time, von der Leyen travelled to Cairo together with several EU heads of government – including Chancellor Karl Nehammer (ÖVP) – to sign the deal. Nehammer said at the time that Egypt was “a very interesting market for Austrian companies”.
According to the Commission, the money will be invested in the North African country’s clean energy, manufacturing and food security sectors, among others. The money will “accompany Egypt’s reform agenda and create incentives,” said von der Leyen. “These reforms will promote a better business environment, attract more investment and create more good jobs in Egypt.” The document was signed by EU Economic Commissioner Valdis Dombrovskis and Egypt’s Minister for International Cooperation, Rania al-Mashat.
European companies on board
According to von der Leyen, European companies will sign contracts worth over 40 billion euros with Egyptian partners to strengthen the country’s economy. There will be more than 20 new contracts or letters of intent, said the EU Commission President in Cairo. The Director General of the European Commission’s Energy Department, Ditte Juul Joergensen, said that around half of the contracts signed were in the energy sector. Von der Leyen explained that European companies that wanted to invest also came from sectors such as water management, construction, chemicals, shipping and aviation.
Egyptian President Abdel Fattah al-Sisi welcomed the agreement. The conference is a first step to improve relations between the EU and Egypt and reflects their commitment to “move beyond the phase of commitments to the phase of implementation,” Sisi said in his speech. The conference is taking place at a “very sensitive time” in the midst of international and regional crises. “Egypt has proven itself to be a reliable partner when it comes to tackling common challenges in a way that achieves security and stability,” said Egypt’s president.
Affected by war
The Arab country with a population of around 100 million is suffering from the ongoing war between Israel and the Palestinian terrorist organization Hamas in the neighboring Gaza Strip. The country itself is in an economic crisis, which is reflected in a currency crisis and rapidly rising inflation, among other things.
Egypt has already received financial aid from the United Arab Emirates, the International Monetary Fund, the World Bank and the EU this year. In return, the government promised reforms, including reducing the strong role of the state and the military in the economy.
