With all formality, last weekend the European Union signed an agreement worth 7.4 billion euros with Egypt.
Cairo has been upgraded to a strategic partner, marking a new era in the relationship between the two sides.
The EU is not known for its speed in reactions, and many emphasise that it was slow to take this step, as the discussion about the necessity of cooperation with North African countries began many months ago.
Both sides stand to benefit from this agreement.
Egypt is amidst a devastating crisis caused by a perfect storm of high inflation, large debt, persistent trade deficit, rising interest rates, and a shortage of foreign currency.
The problems have been significantly exacerbated by Russia’s war in Ukraine, which disrupted global grain markets and pushed food prices to record levels, and by the Houthi attacks on the Suez Canal, which deprived Cairo of annual revenues amounting to 10 billion dollars.
On the other hand, for Europeans, managing migration plays a crucial role.
As with the agreements Brussels has signed with Tunisia or Morocco, the goal is to channel funds to countries in need to curb irregular migration flows.
Egypt hosts tens of thousands of Sudanese refugees, while just a few kilometres away from the Rafah border crossing, hundreds of thousands of Palestinians are trapped under the threat of an Israeli ground intervention.
Brussels’ concern is that Cairo’s resistance might break, and all these people will seek ways to reach European soil.
However, there is another significant factor for the EU.
Besides its strategic position in a turbulent neighbourhood, Egypt maintains communication relations with almost all major players in the Middle East.
It is a country trusted by Europeans, with whom they have no problem doing business.
Energy is also a concern, both regarding Eastern Mediterranean natural gas and the electricity market.
Most importantly, the EU cannot afford another failed state so close to its borders. The nightmares of Libya or Syria cannot be repeated.
That’s why it rushed to support the Egyptian president, offering him support and money and turning a blind eye to the human rights violations recorded in his country.
