The European Commission, in a statement made in Cairo on Sunday, revealed plans to provide financial aid to Egypt through a combination of loans and grants totalling €7.4 billion ($8.1 billion) until the end of 2027.
This money is intended to be part of a new strategic partnership, as announced by the European Commission during a meeting between EU representatives and Egypt's President Abdel Fattah al-Sissi in Cairo on Sunday.
The cooperation is to focus on stemming irregular migration, as well as economic and political cooperation.
Of the €7.4 billion, €5 billion is earmarked for loans and €1.8 billion for investment in food security and digitalization. The remaining €600 million will be in the form of subsidies, with €200 million going to manage migration.
In addition to European Commission President Ursula von der Leyen, the EU delegation includes Italian Prime Minister Giorgia Meloni, Belgian Prime Minister Alexander De Croo, Austrian Chancellor Karl Nehammer and Greek Prime Minister Kyriakos Mitsotakis.
Egypt is currently experiencing a severe economic crisis, with high inflation pegged at 35% and high unemployment driving growing numbers of Egyptians into poverty.
Von der Leyen has long called for closer cooperation with Egypt, noting in October last year that the country is taking in a growing number of refugees and that the EU has a responsibility to assist.
Egypt had a key role in the region's security and stability, and setting up a strategic and mutually beneficial partnership, should be a priority, she told EU heads of state and government.
Greece has expressed concern over increasing arrivals in its waters of Egyptian migrants crossing the Mediterranean to Crete from Tobruk in Libya.
The UN Refugee Agency (UNHCR) has already recorded more than 1,000 people arriving on the islands of Gavdos or Crete from Tobruk this year. Most of them are said to come from Egypt.
Meanwhile, EU diplomats stress that curbing migration is just one of several aspects in the partnership. Diplomatic sources referred to the need to limit Russian and Chinese influence in Egypt.
They pointed to the construction of a nuclear power plant at El Dabaa to the west of Alexandria by Russia and large investments by China, which ships most of its exports to Europe through the Suez Canal.
German Chancellor Olaf Scholz told dpa that strategic partnerships with third countries such as Egypt are an important building block for the EU's fight against irregular migration: "That is why the EU's agreement with Egypt on this issue is good news."
An earlier EU deal with Tunisia triggered debate and controversy. The deal offered Tunisia millions in financial aid in exchange for taking stronger action against smugglers and illegal crossings.
Refugee advocacy organizations sharply criticized the European Commission over the deal, noting that the Tunisian government has been accused of human rights violations.
Al-Sissi's government in Egypt, which came to power in a 2013 military coup, has likewise faced many allegations of rights abuses.
Civil liberties like freedom of expression are severely restricted and demonstrations effectively banned.
According to human rights activists, critics are persecuted using drastic methods and have to fear arbitrary arrests or worse. Activists say tens of thousands have been imprisoned for political reasons.
