Members of the European Parliament have approved two proposals to provide Egypt and Jordan with loans worth EUR4 billion ($4.3 billion) and EUR500 million ($539.5 million), respectively. The EU Parliament adopted the macro-financial assistance to Egypt with 452 votes in favour, 182 against, and 40 abstentions. The proposal for Jordan was passed with 571 votes in favour, 59 against, and 46 abstentions.
Moreover, the European Commission proposed support for Egypt on March 15, 2024, in the form of macro-financial assistance through loans amounting to up to EUR5 billion. This further included a short-term loan of up to EUR1 billion, which was already disbursed at the end of 2024, and a regular loan of up to EUR4 billion to be disbursed in three instalments. The Parliament approved this proposal.
As for Jordan, the loan is intended to help cover financing needs, support structural reforms, and contribute to fiscal consolidation efforts.
Read more: Egypt to benefit from $94.3 million EU loan to boost food security
Context and importance
Furthermore, the financial aid to both countries is crucial given the geopolitical tensions in the region. Egypt is seen as a stabilizing force amid these tensions, while Jordan faces significant economic challenges. The EU’s support is not only aimed at alleviating immediate financial pressures but also at promoting long-term political and economic stability in these nations.Â
The loans approved by the European Parliament represent a significant commitment to supporting Egypt and Jordan in their efforts to navigate complex economic landscapes and promote democratic governance. This assistance underscores the EU’s strategic interests in maintaining stability in the region.
