EU’s Egyptian headache: Brussels readies €7.4bn aid package to help economy, curb migration

Egypt is reportedly set to receive up to 7.4 billion euros in funding from the European Union under a major ‘cash for migrant control’ pact which could be formally announced during the upcoming visit of the European Commission chief to Cairo this Sunday (17 March).
The EU support package is intended to relieve pressure on the Egyptian economy as concerns over the impact of the ongoing war on Gaza continue to grow, according to a report by the Financial Times on Wednesday (13 March). The report also suggested that the EU delegation comprising the European Commission President Ursula von der Leyen and the prime ministers of Greece, Belgium, and Italy that is set to visit Cairo this weekend would likely finalize and announce the financial agreement with the Egyptian government. Egyptian Minister of Finance Mohamed Maait recently revealed that he anticipates around 4.5-5.5 billion euros from the EU, provided in a mixture of grants and loans.
It comes amid mounting concerns in Europe over fears of increased migratory flows and internal pressure on Egyptian President Abdel Fattah El-Sisi. Athens has described the forthcoming EU support for Egypt with a generous package to manage migration as “vital” for the wider region. The Greek government’s concern stems especially from an increased flow of migrants to Crete originating from Egypt, which is the result of both the country’s struggling economy and also the dreadful situation in Gaza. There could reportedly be millions of refugees in Egypt and with any further destabilization in the North African country, the flows to Greece could increase dramatically via Libya. Thus, according to a Stratfor analysis, the agreement particularly seeks to reinforce Egypt’s borders with Sudan, via which Sudanese are entering Egypt, and Libya, via which Egyptians are leaving Egypt to attempt a crossing into Europe.