The European Parliament has given its stamp of approval to a mammoth €4 billion macro-financial assistance (MFA) package for Egypt — a decision that will be hailed by some as a strategic lifeline, and by others as an unjustified gift to a regime with an increasingly patchy record on human rights.
The financial package, backed by 386 MEPs with 132 voting against and 49 abstaining, comes on top of an earlier €1 billion short-term loan disbursed at the end of 2024. Under the terms of the deal, Egypt will have 35 years to repay the total €5 billion sum. The release of funds, however, is subject to Cairo meeting conditions set by the International Monetary Fund (IMF) and the EU itself.
While the deal was lauded by its supporters as a necessary intervention in a region fraught with instability, critics were quick to raise questions about whether the EU was compromising its own values — particularly when it comes to democracy and the rule of law.
Céline Imart, the European Parliament’s rapporteur and French MEP from the centre-right European People’s Party, defended the decision: “Parliament’s backing for this EU loan reflects its high regard for Egypt as a partner country. By helping Egypt, we are also looking after EU interests in an unstable region.”
That assessment underscores the realpolitik behind the EU’s overture. Egypt remains a key interlocutor on issues ranging from energy security and trade to counterterrorism and — most crucially — migration. Brussels is acutely aware that economic collapse in Cairo could send ripples across the Mediterranean and destabilise Europe’s southern neighbourhood.
Nonetheless, strings are firmly attached. Disbursement will hinge on Cairo’s adherence to an IMF programme, and a separate memorandum of understanding between Egyptian authorities and the EU. This will spell out specific policy measures Egypt must undertake.
The Commission is also tasked with producing an annual report to both the Parliament and the Council, evaluating Egypt’s economic and fiscal performance, and crucially, its record on democratic governance and human rights.
That last condition is likely to be the most contentious. President Abdel Fattah el-Sisi’s regime has faced sustained criticism over crackdowns on dissent, the jailing of political opponents, and the shrinking space for civil society. For many MEPs — particularly on the left and among Greens and liberals — the deal risks handing a blank cheque to an autocrat, not least because the European Commission has a very poor record on following up on recipients implementation of human rights promises.
But others argue that failing to support Egypt could come at a much higher cost. A collapse of confidence in Cairo’s economy could exacerbate social unrest, drive emigration, and open the door to radicalisation.
The vote reveals fault lines in the EU’s foreign policy: between pragmatism and principle, stability and accountability. Whether Brussels can effectively leverage its financial firepower to elicit reform — or ends up bankrolling repression — remains to be seen.
For now, €4 billion in EU taxpayer money is heading south. What Egypt does with it will (hopefully) be watched with scrutiny, not just in Brussels, but across a region where Europe’s credibility hangs in the balance.
Main Image: Photographer: Daina Le Lardic © European Union 2025 – Source : EP Usage terms: Identification of origin mandatory
