P10_TA(2025)0049 – Macro-financial assistance to Egypt – Amendments adopted by the European Parliament on 1 April 2025 on the proposal for a decision of the European Parliament and of the Council on providing macro-financial assistance to the Arab Republic of Egypt (COM(2024)0461 – C10-0009/2024 – 2024/0071(COD)) (Ordinary legislative procedure: first reading)
Date: 2025-04-01
Institutions: Committee on Budgets, Committee on Foreign Affairs, Committee on International Trade, European Parliament
Subjects: EU aid, EU loan, Egypt, European Neighbourhood and Partnership Instrument, European neighbourhood policy, economic reform, economic stabilisation, financial aid, macro-financial assistance, structural adjustment




C_202504380EN.000101.fmx.xml












Official Journal of the European Union


EN
C series













C/2025/4380


9.9.2025






P10_TA(2025)0049

Macro-financial assistance to Egypt


Amendments adopted by the European Parliament on 1 April 2025 on the proposal for a decision of the European Parliament and of the Council on providing macro-financial assistance to the Arab Republic of Egypt (COM(2024)0461 – C10-0009/2024 – 2024/0071(COD)) (1)



(Ordinary legislative procedure: first reading)

(C/2025/4380)


Amendment 1


Proposal for a decision


Recital 1 a (new)








Text proposed by the Commission




Amendment





 










(1a)






This Decision has implications for the Union budget. Accordingly, the European Parliament’s Committee on Budgets adopted a budgetary assessment, which forms an integral part of Parliament’s mandate for negotiations.











Amendment 2


Proposal for a decision


Recital 2 a (new)








Text proposed by the Commission




Amendment





 










(2a)






On 17 March 2024, Egypt and the European Union jointly decided to upgrade their relations to a strategic and comprehensive partnership, based on the values of equity and mutual respect and trust in order to strengthen their common stability, peace and prosperity.











Amendments 3 and 39


Proposal for a decision


Recital 3








Text proposed by the Commission




Amendment











(3)


In line with the Partnership Priorities, the EU and Egypt are committed to ensuring accountability, the rule of law, the full respect of human rights, fundamental freedoms, promoting democracy, gender equality and equal opportunities as constitutional rights of all their citizens. These commitments contribute to the advancement of the partnership and to Egypt’s sustainable development 
and
 stability. The increased and constructive engagement between the EU and Egypt in the last period has opened the path to more meaningful dialogue on human rights related issues. The subcommittee on Political Matters, Human Rights and Democracy, International and Regional issues of December 2022 and the Association Committee of May 2023 provided the institutional platforms to exchange on an array of human rights issues, which the EU would like to continue and build on. 
The
 improvement of the human rights situation in Egypt will have a positive impact on EU-Egypt relations.












(3)


In line with the Partnership Priorities, the EU and Egypt are committed to ensuring accountability, the rule of law, the full respect of human rights, fundamental freedoms, promoting democracy, gender equality and equal opportunities as constitutional rights of all their citizens. These commitments contribute to the advancement of the partnership and to Egypt’s sustainable 
social and economic
 development
, good governance and socio-economic
 stability. The increased and constructive engagement between the EU and Egypt in the last period has opened the path to more meaningful dialogue on human rights related issues. The subcommittee on Political Matters, Human Rights and Democracy, International and Regional issues of December 2022 and the Association Committee of May 2023 provided the institutional platforms to exchange on an array of human rights issues, which the EU would like to continue and build on. 
A steady future
 improvement of the human rights situation
, such as improving the rights to freedom of expression, association and peaceful assembly, introducing a moratorium on the death penalty, combating torture and enforced disappearances, and improving the conditions of prisons, and women's rights and fundamental freedoms due to an active, coherent and proactive policy in that area
 in Egypt will have a positive impact on EU-Egypt relations.









Amendment 4


Proposal for a decision


Recital 3 a (new)








Text proposed by the Commission




Amendment





 










(3a)






Egypt's economic and financial situation has been marked by several macroeconomic adjustment programmes implemented under the aegis of the IMF in exchange for credit facilities (USD 12 billion from 2016 to 2019 and USD 3 billion in 2022, rising to USD 8 billion in March 2024).











Amendments 5 and 40


Proposal for a decision


Recital 5








Text proposed by the Commission




Amendment











(5)


The EU recognises Egypt's key role for regional security and stability. Terrorism, organised crime 
and
 conflicts are common threats against our security and the social fabric of nations across both sides of the Mediterranean. Therefore, the EU and Egypt have a common interest in strengthening cooperation highlighted in the Partnership Priorities, in full compliance with international law, including human rights and international humanitarian law.












(5)


The EU recognises Egypt's key role for regional security and stability
, and has a strong interest in preventing short-term economic instability in the country that could have broader consequences as well as benefit geopolitical rivals
. Terrorism, organised crime
, such as human trafficking, irregular migration, disinformation,
 conflicts 
and the persecution of religious and ethnic minorities,
 are common threats against our security and the social fabric of nations across both sides of the Mediterranean
. Similarly, energy is also one of the most pressing challenges facing countries on both sides of the Mediterranean. Energy cooperation between the EU and Egypt in the Eastern Mediterranean could not only offer a source of economic prosperity for the region but also strengthen energy security for the EU by diversifying energy supplies and encouraging regional collaboration. In that respect, the East Mediterranean Gas Forum serves as a platform of positive regional cooperation
. Therefore, the EU and Egypt have a common interest in strengthening cooperation highlighted in the Partnership Priorities, in full compliance with international law, including 
the International Law of the Sea,
 human rights and international humanitarian law
, as well as in promoting joint interests and addressing common challenges
.









Amendment 6


Proposal for a decision


Recital 6








Text proposed by the Commission




Amendment











(6)


Recalling the geo-political challenges, such as the 
consequences of
 Hamas terrorist attacks across Israel on 7 October 2023 as well as the conflict in Sudan, and the strategic importance of Egypt as the largest country in the region and a pillar of stability for the whole Middle East, the Union 
is embarking on concluding
 a Strategic and Comprehensive partnership with Egypt as outlined in the Joint Declaration.












(6)


Recalling the 
global and regional
 geo-political challenges, such as the 
humanitarian crisis in Gaza, resulting from the aftermath of the
 Hamas terrorist attacks across Israel on 7 October 2023
, the escalating tensions in the Horn of Africa and the safety of navigation in the Red Sea and the Suez Canal,
 as well as 
migratory pressure from
 the conflict in Sudan, 
uncertainties in Syria, the instability in Libya, Egypt’s responsibilities as a host to large numbers of refugees and migrants
 and the strategic importance of Egypt as the largest country in the region and a pillar of stability for the whole Middle East, the Union 
has embarked on
 a Strategic and Comprehensive partnership with Egypt as outlined in the Joint Declaration.









Amendment 7


Proposal for a decision


Recital 7








Text proposed by the Commission




Amendment











(7)


The objective of the Strategic and Comprehensive Partnership with Egypt is to elevate the EU-Egypt political relations to a strategic partnership and enable Egypt to fulfil its key role of providing stability in the region. The partnership aims to contribute to support Egypt’s macroeconomic resilience and enable the implementation of ambitious socio-economic reforms in a manner that complements and reinforces the reform process foreseen under the IMF programme for Egypt. As outlined in the Joint Declaration, the partnership will address a wide set of policy measures clustered across six pillars of intervention, namely: political relations; economic stability; investment and trade; migration; security and law enforcement cooperation; demography and human capital.












(7)


The objective of the Strategic and Comprehensive Partnership with Egypt is to elevate the EU-Egypt political relations to a strategic partnership and enable Egypt to fulfil its key role of providing stability in the region
, the Middle East and North Africa
. The partnership aims to contribute to support Egypt’s macroeconomic resilience and enable the implementation of ambitious socio-economic reforms in a manner that complements and reinforces the reform process foreseen under the IMF programme for Egypt. As outlined in the Joint Declaration, the partnership will address a wide set of policy measures clustered across six pillars of intervention, namely: political relations; economic stability; investment and trade; 
irregular
 migration 
and mobility in respect of human rights
; security and law enforcement cooperation; demography and human capital. 
Such Strategic and Comprehensive Partnership should be developed in line with initiatives at Union and Member State level such as the Global Gateway and the Mattei Plan for Africa.











Amendment 8


Proposal for a decision


Recital 8








Text proposed by the Commission




Amendment











(8)


Underpinning the partnership 
will be
 a financial package of EUR 7.4 billion consisting of short- and longer-term support for the necessary macro-fiscal and socio-economic reform agenda, as well as increased amounts available to support investments in Egypt and targeted support for the implementation of the different strategic priorities. Part of the support package is the EU MFA package of up to EUR 5 billion in loans, composed of two MFA operations, one short-term for up to EUR 1 billion and a regular, more medium-term one for up to EUR 4 billion, financial instruments, such as guarantees and blending instruments, aimed at mobilising public and private investments with the objective of generating substantial new investments. This will be complemented by programmes to support specific priorities under the Strategic and Comprehensive Partnership through individual projects and technical assistance implemented under the Neighbourhood, Development and International Cooperation Instrument (2).












(8)


Underpinning the partnership 
is
 a financial package of EUR 7.4 billion consisting of short- and longer-term support for the necessary macro-fiscal and socio-economic reform agenda, as well as increased amounts available to support investments in Egypt and targeted support for the implementation of the different strategic priorities
, particularly in terms of irregular migration and renewable energy
. Part of the support package is the EU MFA package of up to EUR 5 billion in 
concessional
 loans, composed of two MFA operations, one short-term for up to EUR 1 billion and a regular, more medium-term one for up to EUR 4 billion, financial instruments, such as guarantees and blending instruments, aimed at mobilising public and private investments 
that benefit the majority of Egyptians
 with the objective of generating substantial new investments. This will be complemented by programmes to support specific priorities under the Strategic and Comprehensive Partnership through individual projects and technical assistance implemented under the Neighbourhood, Development and International Cooperation Instrument (2).













Amendment 9


Proposal for a decision


Recital 9








Text proposed by the Commission




Amendment











(9)


Egypt’s macro-fiscal situation has faced significant challenges and deteriorated substantially over recent months, as external pressures have intensified and public debt has increased further, with substantial downside risks to the economic outlook persisting. The repercussions of Russia’s war on Ukraine and 
of Hamas terrorist attacks against Israel
 have led to protracted capital outflows and lower foreign currency receipts, notably due to sharply falling income from tourism and Suez Canal proceeds. This is particularly challenging amid Egypt’s difficult fiscal situation, which is characterised by constant fiscal deficits and high and growing debt to GDP ratios.












(9)


Egypt’s macro-fiscal situation has faced significant challenges and deteriorated substantially over recent months, as external pressures have intensified and public debt has increased further, with substantial downside risks to the economic outlook persisting. The repercussions of Russia’s war on Ukraine and 
the geopolitical tensions and conflicts in the Middle East
 have led to protracted capital outflows and lower foreign currency receipts, notably due to sharply falling income from tourism
,
 Suez Canal proceeds 
and gas production and loss of confidence among foreign investors
. This is particularly challenging amid Egypt’s difficult fiscal situation, which is characterised by constant fiscal deficits and high and growing debt to GDP ratios. 
Despite that difficult external context, in 2024 Egypt was able to implement reforms, such as the unification of exchange rates and making progress in tightening monetary policy, to help preserve macroeconomic stability.











Amendment 10


Proposal for a decision


Recital 12








Text proposed by the Commission




Amendment











(12)


Egypt re-engaged with the IMF in early 2024 and reached a staff-level agreement on 6 March 2024 on a revamped Extended Fund Facility programme scaled up to USD 8 billion. The new programme 
is expected to be adopted by IMF Executive Board decision in March 2024 and
 aims to address the areas of 1) credible exchange rate flexibility, 2) sustainable tightening of monetary policy, 3) fiscal consolidation to preserve debt sustainability, 4) a new framework to rein in infrastructure spending, 5) providing adequate levels of social spending to protect vulnerable groups, and 6) implementation of the State Ownership Policy and reforms to level the playing field. Together with the staff level agreement’s signature, Egypt also enacted a flexibilisation of the exchange rate, and raised the central bank’s key policy rate by a sizeable 600 basis points, in line with the IMF programme’s priorities.












(12)


Egypt re-engaged with the IMF in early 2024 and reached a staff-level agreement on 6 March 2024 on a revamped Extended Fund Facility programme scaled up to USD 8 billion. 
Negotiations at expert level on the fourth revision of Egypt's economic reform programme were concluded in December 2024.
 The new programme aims to address the areas of 1) credible exchange rate flexibility, 2) sustainable tightening of monetary policy, 3) fiscal consolidation to preserve debt sustainability, 4) a new framework to rein in infrastructure spending, 5) providing adequate levels of social spending to protect vulnerable groups 
from the cost of living and energy price rises
, and 6) implementation of the State Ownership Policy and reforms to level the playing field 
by promoting the development of the private sector in the economy
. Together with the staff level agreement’s signature, Egypt also enacted a flexibilisation of the exchange rate, and raised the central bank’s key policy rate by a sizeable 600 basis points, in line with the IMF programme’s priorities.









Amendment 11


Proposal for a decision


Recital 16








Text proposed by the Commission




Amendment











(16)


Given that there is still a significant residual external financing gap in Egypt's balance of payments over and above the resources provided by the IMF and other multilateral institutions, the Union macro-financial assistance to be provided to Egypt is, under the current exceptional circumstances, considered to be an appropriate response to Egypt's request for support to the economic stabilisation, in conjunction with the IMF programme. The Union's macro-financial assistance package, including the MFA of up to EUR 4 billion under this proposal, would support the economic stabilisation and the structural reform agenda of Egypt, supplementing resources made available under the IMF's financial arrangement.












(16)


Given that there is still a significant residual external financing gap in Egypt's balance of payments over and above the resources provided by the IMF and other multilateral institutions 
and regional partners
, the Union macro-financial assistance to be provided to Egypt is, under the current exceptional circumstances, considered to be an appropriate response to Egypt's request for support to the economic stabilisation, in conjunction with the IMF programme. The Union's macro-financial assistance package, including the MFA of up to EUR 4 billion under this proposal, would support the economic stabilisation and the structural reform agenda of Egypt, supplementing resources made available under the IMF's financial arrangement.









Amendment 12


Proposal for a decision


Recital 19








Text proposed by the Commission




Amendment











(19)


The Commission should ensure that the Union's macro-financial assistance is legally and substantially in line with the key principles, objectives and measures taken within the different areas of external action and with other relevant Union policies.












(19)


The Commission should ensure that the Union's macro-financial assistance is legally and substantially in line with the key principles, objectives and measures taken within the different areas of external action and with other relevant Union policies
, including those relating to democracy, human rights and rule of law, in line with Article 2 of the EU-Egypt Association Agreement
.









Amendment 13


Proposal for a decision


Recital 22








Text proposed by the Commission




Amendment











(22)


A pre-condition for granting the Union's macro-financial assistance to Egypt should be that the country continues to make concrete 
and
 credible steps towards respecting effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and 
guarantees
 respect for human rights. In addition, the specific objectives of the Union's macro-financial assistance should strengthen the efficiency, transparency and accountability of the public finance management systems, the governance and supervision of the financial sector in Egypt and promote structural reforms aimed at supporting sustainable and inclusive growth, decent employment creation and fiscal consolidation. The fulfillment of the pre-condition and the achievement of the specific objectives should be regularly monitored by the Commission services and the European External Action Service.












(22)




Macro-financial assistance should remain an economic instrument. However,
 a pre-condition for granting the Union's macro-financial assistance to Egypt should be that the country continues to make concrete
,
 credible 
and tangible
 steps towards respecting 
and strengthening
 effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and 
guaranteeing
 respect for human rights. In addition, the specific objectives of the Union's macro-financial assistance should strengthen the efficiency, transparency and accountability of the public finance management systems, the governance and supervision of the financial sector in Egypt and promote structural reforms aimed at supporting sustainable and inclusive growth, decent employment creation and fiscal consolidation. The fulfillment of the pre-condition and the achievement of the specific objectives should be regularly monitored by the Commission services and the European External Action Service.









Amendment 14


Proposal for a decision


Recital 23








Text proposed by the Commission




Amendment











(23)


In order to ensure that the Union’s financial interests linked to the Union’s macro-financial assistance are protected efficiently, Egypt should take appropriate measures relating to the prevention of, and fight against, fraud, corruption and any other irregularities linked to the assistance. In addition, a loan agreement to be concluded between the Commission and the Egyptian authorities should contain provisions authorising European Anti-Fraud Office (OLAF) to carry out investigations, including on-the-spot checks and inspections, in accordance with the provisions and procedures laid down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (3) and Council Regulation (Euratom, EC) No 2185/96 (4), the Commission and the Court of Auditors to carry out audits and the European Public Prosecutor’s Office to exercise its competences with regard to the provision of the Union’s macro-financial assistance during and after its availability period.












(23)




It is essential to underline that Egypt has to meet the necessary economic pre-condition for eligibility. Egypt has demonstrated its solvency and financial stability, which have been verified by the Commission. However,
 in order to ensure that the Union’s financial interests linked to the Union’s macro-financial assistance are protected efficiently, Egypt should take appropriate measures relating to the prevention of, and fight against, fraud, corruption and any other irregularities linked to the assistance. In addition, a loan agreement to be concluded between the Commission and the Egyptian authorities should contain provisions authorising European Anti-Fraud Office (OLAF) to carry out investigations, including on-the-spot checks and inspections, in accordance with the provisions and procedures laid down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (3) and Council Regulation (Euratom, EC) No 2185/96 (4), the Commission and the Court of Auditors to carry out audits and the European Public Prosecutor’s Office to exercise its competences with regard to the provision of the Union’s macro-financial assistance during and after its availability period.

















Amendment 15


Proposal for a decision


Recital 26








Text proposed by the Commission




Amendment











(26)


The Union's macro-financial assistance should be managed by the Commission. In order to ensure that the European Parliament and the Council are able to follow the implementation of this Decision, the Commission should regularly inform them of developments relating to the assistance and provide them with relevant documents.












(26)


The Union's macro-financial assistance should be managed by the Commission. In order to ensure that the European Parliament and the Council are able to follow the implementation of this Decision, the Commission should regularly inform them 
with an annual report
 of developments relating to the assistance and 
on respect for effective democratic mechanisms, as per the pre-conditions referred to in this Decision, and
 provide them with relevant documents.









Amendments 16 and 42


Proposal for a decision


Recital 28








Text proposed by the Commission




Amendment











(28)


The Union's macro-financial assistance should be subject to economic policy conditions, to be laid down in a Memorandum of Understanding. In order to ensure uniform conditions of implementation and for reasons of efficiency, the Commission should be empowered to negotiate such conditions with the Egyptian authorities under the supervision of the committee of representatives of the Member States in accordance with Regulation (EU) No 182/2011. Under that Regulation, the advisory procedure should, as a general rule, apply in all cases other than as provided for in that Regulation. Considering the potentially important impact of assistance of more than EUR 90 million, it is appropriate that the examination procedure be used for operations above that threshold. Considering the amount of the Union's macro-financial assistance to Egypt, the examination procedure should apply to the adoption of the Memorandum of Understanding, and to any reduction, suspension or cancellation of the assistance.












(28)


The Union's macro-financial assistance should be subject to 
sustainable
 economic policy 
reforms and democracy, rule of law and human rights
 conditions, to be laid down in a Memorandum of Understanding. In order to ensure uniform conditions of implementation and for reasons of efficiency, the Commission should be empowered to negotiate such conditions with the Egyptian authorities under the supervision of the committee of representatives of the Member States in accordance with Regulation (EU) No 182/2011. Under that Regulation, the advisory procedure should, as a general rule, apply in all cases other than as provided for in that Regulation. Considering the potentially important impact of assistance of more than EUR 90 million, it is appropriate that the examination procedure be used for operations above that threshold. Considering the amount of the Union's macro-financial assistance to Egypt, the examination procedure should apply to the adoption of the Memorandum of Understanding, and to any reduction, suspension or cancellation of the assistance.









Amendment 17


Proposal for a decision


Article 1 – paragraph 1








Text proposed by the Commission




Amendment






1.   The Union shall make macro-financial assistance of a maximum amount of up to EUR 4 billion available to Egypt (‘the Union's macro-financial assistance’), with a view to supporting Egypt's 
economic
 stabilisation and a substantive reform agenda. The release of the Union's macro-financial assistance is subject to the approval of the Union budget for the relevant year by the European Parliament and the Council. The assistance shall contribute to covering Egypt's balance of payments needs as identified in the IMF programme.




1.   The Union shall make macro-financial assistance 
in the form of concessional loans
 of a maximum amount of up to EUR 4 billion available to Egypt (‘the Union's macro-financial assistance’), with a view to supporting Egypt's 
socio-economic
 stabilisation and a substantive 
structural
 reform agenda
, as well as its responsibility to mitigate the effects of irregular migration and managing migratory flows
. The release of the Union's macro-financial assistance is subject to the approval of the Union budget for the relevant year by the European Parliament and the Council. The assistance shall contribute to covering Egypt's balance of payments needs as identified in the IMF programme.






Amendment 44


Proposal for a decision


Article 1 – paragraph 3 – subparagraph 2 a (new)








Text proposed by the Commission




Amendment





 




The transparent management of funds allocated under this macro-financial assistance is essential in order to ensure that resources are used wisely, in accordance with the set objectives. The Union shall ensure that effective and independent control and audit mechanisms are put in place to prevent any misappropriation.







Amendment 18


Proposal for a decision


Article 1 – paragraph 3 a (new)








Text proposed by the Commission




Amendment





 





3a.
   
Macro-financial assistance may, as far as possible, contribute to the Union's growth and economic resilience.








Amendment 19


Proposal for a decision


Article 2 – paragraph 1








Text proposed by the Commission




Amendment






1.   A pre-condition for granting the Union's macro-financial assistance shall be that Egypt continues to make concrete and credible steps towards respecting effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and 
guarantees
 respect for human rights.




1.   A pre-condition for granting the Union's macro-financial assistance shall be that Egypt continues to make concrete and credible steps towards respecting 
and strengthening
 effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and 
continues to make efforts in order to guarantee
 respect for human rights.






Amendment 20


Proposal for a decision


Article 2 – paragraph 2








Text proposed by the Commission




Amendment






2.   The Commission services and the European External Action Service shall monitor the fulfilment of this pre-condition throughout the life-cycle of the Union's macro-financial assistance.




2.   The Commission services and the European External Action Service shall monitor the fulfilment of this pre-condition throughout the life-cycle of the Union's macro-financial assistance 
and report, regularly and in writing, to the European Parliament and the Council on the fulfilment of the economic policy and financial conditions set out in the Memorandum of Understanding
.






Amendment 21


Proposal for a decision


Article 3 – paragraph 1








Text proposed by the Commission




Amendment






1.   The Commission, in accordance with the examination procedure referred to in Article 7(2), shall agree with the Egyptian authorities on clearly defined economic policy and financial conditions, focusing on structural reforms and sound public finances, to which the Union's macro-financial assistance is to be subject, to be laid down in a Memorandum of Understanding (‘the Memorandum of Understanding’) which shall include a timeframe for the achievement of those reforms. The economic policy and financial conditions set out in the Memorandum of Understanding shall be consistent with the agreements or understandings referred to in Article 1(3), including the macroeconomic adjustment and structural reform programmes implemented by Egypt with the support of the IMF.




1.   The Commission, in accordance with the examination procedure referred to in Article 7(2), shall agree with the Egyptian authorities on clearly defined economic policy and financial conditions, focusing on structural reforms, 
such as the new criminal procedure reform,
 and sound public finances, to which the Union's macro-financial assistance is to be subject, to be laid down in a Memorandum of Understanding (‘the Memorandum of Understanding’) which shall include a timeframe for the achievement of those reforms. The economic policy and financial conditions set out in the Memorandum of Understanding shall be consistent with the agreements or understandings referred to in Article 1(3), including the macroeconomic adjustment and structural reform programmes implemented by Egypt with the support of the IMF.






Amendment 22


Proposal for a decision


Article 3 – paragraph 2








Text proposed by the Commission




Amendment






2.   The conditions referred to in paragraph 1 shall aim, in particular, at enhancing the efficiency, transparency and accountability of the public finance management systems in Egypt, including for the use of the Union's macro-financial assistance. Progress in mutual market opening, the development of rules-based and fair trade, and other priorities in the context of the Union's external policy shall also be duly taken into account when designing the policy measures. Progress in attaining those objectives shall be regularly monitored by the Commission.




2.   The 
economic policy and financial
 conditions referred to in paragraph 1 shall aim, in particular, at enhancing the efficiency, transparency and accountability of the public finance management systems in Egypt, including for the use of the Union's macro-financial assistance. Progress in mutual market opening, 
including for SMEs,
 the development of rules-based and fair trade, 
sustainable development, good governance
 and other priorities in the context of the Union's external policy shall also be duly taken into account when designing the policy measures. Progress in attaining those objectives shall be regularly monitored by the Commission.






Amendment 49


Proposal for a decision


Article 4 – paragraph 3 – subparagraph 1 – point c








Text proposed by the Commission




Amendment











(c)


the satisfactory implementation of the economic policy conditions 
and
 financial conditions agreed in the Memorandum of Understanding.












(c)


the satisfactory implementation of the economic policy conditions
,
 financial conditions
, and democracy, rule of law and human rights conditions,
 agreed in the Memorandum of Understanding.









Amendment 23


Proposal for a decision


Article 4 – paragraph 4








Text proposed by the Commission




Amendment






4.   Where the conditions in paragraph 3 are not met, the Commission shall temporarily suspend or cancel the disbursement of the Union's macro-financial assistance. In such cases, it shall inform the European Parliament and the Council of the reasons for that suspension or cancellation.




4.   Where the conditions in paragraph 3 are not met, the Commission shall temporarily suspend or cancel the disbursement of the Union's macro-financial assistance. In such cases, it shall inform the European Parliament and the Council 
without delay
 of the reasons for that suspension or cancellation.






Amendment 24


Proposal for a decision


Article 5 – paragraph 1








Text proposed by the Commission




Amendment






(1)   In order to finance the support under the macro-financial assistance in the form of loans, the Commission shall be empowered, on behalf of the Union, to borrow the necessary funds on the capital markets or from financial institutions in accordance with Article 
220a
 of Regulation (EU, Euratom) 
2018/1046
.




1.   In order to finance the support under the macro-financial assistance in the form of loans, the Commission shall be empowered, on behalf of the Union, to borrow the necessary funds on the capital markets or from financial institutions in accordance with Article 
223
 of Regulation (EU, Euratom) 
2024/2509
.






Amendment 25


Proposal for a decision


Article 5 – paragraph 2








Text proposed by the Commission




Amendment






(2)   The Commission shall enter into a loan agreement with Egypt in respect of the amount referred to in Article 1. The detailed terms of the support under the MFA in the form of loans shall be laid down in a loan agreement in accordance with Article 
220
 of the Financial Regulation, to be concluded between the Commission and the Egyptian authorities. The loan agreement shall lay down the availability period and the detailed terms of the support under the macro-financial assistance in the form of loans, including in relation to the internal control systems. 
The loans
 shall be granted at terms that allow 
Egypt to repay the loan
 over a long period, including a possible grace period. The maximum duration of the loans shall be 35 years. The Commission shall inform the European Parliament and the Council of developments in the operations referred to in paragraph 3.




2.   The Commission shall enter into a loan agreement with Egypt in respect of the amount referred to in Article 1. The detailed terms of the support under the MFA in the form of loans shall be laid down in a loan agreement in accordance with Article 
223
 of the Financial Regulation, to be concluded between the Commission and the Egyptian authorities. The loan agreement shall lay down the availability period and the detailed terms of the support under the macro-financial assistance in the form of loans, including in relation to the internal control systems. 
Egypt shall reimburse the loan, which
 shall be granted at terms that allow 
its repayment
 over a long period, including
, after a formal notification to the European Parliament and the Council,
 a possible grace period. The maximum duration of the loans shall be 35 years. The Commission shall inform the European Parliament and the Council of developments in the operations referred to in paragraph 3.






Amendment 26


Proposal for a decision


Article 6 – paragraph 1








Text proposed by the Commission




Amendment






1.   The Union’s macro-financial assistance shall be implemented in accordance with Regulation (EU, Euratom) 
No 2018/1046
 of the European Parliament and of the Council (7).




1.   The Union’s macro-financial assistance shall be implemented in accordance with Regulation (EU, Euratom) 
2024/2509
 of the European Parliament and of the Council (7).










Amendment 27


Proposal for a decision


Article 8 – paragraph 1 – point b








Text proposed by the Commission




Amendment











(b)


assess the economic situation and prospects of Egypt, as well as progress made in implementing the policy measures referred to in Article 3(1);












(b)


assess the economic situation and prospects of Egypt, as well as progress made in implementing the policy measures referred to in 
Article 2 and
 Article 3(1);









Amendment 28


Proposal for a decision


Article 8 – paragraph 1 – point c








Text proposed by the Commission




Amendment











(c)


indicate the connection between 
the
 economic policy 
reform measures laid down in
 the Memorandum of Understanding, 
Egypt’s on-going economic and
 fiscal performance and the 
Commission’s decisions to
 release 
the instalments of the Union's
 macro-financial assistance.












(c)


indicate the connection between 
Egypt's
 economic policy 
reforms under
 the Memorandum of Understanding, 
its
 fiscal performance
,
 and the release 
of Union
 macro-financial assistance
, while outlining steps taken towards democratic mechanisms, the rule of law and human rights
.










(1)  The matter was referred back for interinstitutional negotiations to the committee responsible, pursuant to Rule 60(4), fourth subparagraph (A10-0037/2025).

(2)  Established by Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing Decision No 466/2014/EU and repealing Regulation (EU) 2017/1601 and Council Regulation (EC, Euratom) No 480/2009 (OJ L 209, 14.6.2021, p. 1)

(2)  Established by Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing Decision No 466/2014/EU and repealing Regulation (EU) 2017/1601 and Council Regulation (EC, Euratom) No 480/2009 (OJ L 209, 14.6.2021, p. 1)

(3)  Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).

(3)  Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).

(4)  Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities’ financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).

(4)  Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities’ financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).

(7)  Regulation (EU, Euratom) 
No 2018/1046
 of the European Parliament and of the Council of 

                  18 July 2018
               
 on the financial rules applicable to the general budget of the Union 
and repealing Regulation
 (
EC, Euratom
) 
No 966/2012
 (OJ L 
193, 30.07.2018, p. 1

).

(7)  Regulation (EU, Euratom) 
2024/2509
 of the European Parliament and of the Council of 

                  23 September 2024
               
 on the financial rules applicable to the general budget of the Union (OJ 
L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj



).




ELI: http://data.europa.eu/eli/C/2025/4380/oj
ISSN 1977-091X (electronic edition)