On Sunday, the European Union unveiled an $8 billion aid package for cash-strapped Egypt to curb economic pressure and conflicts in neighboring countries that could drive more migrants to European shores.

The funding aims to boost cooperation in renewable energy, trade, and security while providing grants, loans, and other funding over the next three years.

EU Unveils $8 Billion Aid Package for Egypt

According to a summary published by the EU, the proposed funding consists of $1.9 billion in investments and $5 billion in concessional loans. Another $600 thousand would also be given, with $200 million for migration.

Alongside EU Commission President Ursula von der Leyen, the prime ministers of Greece, Austria, Belgium, and Cyprus, as well as the president of Cyprus, Italian Prime Minister Giorgia Meloni, stated that such agreements were "the best way to address migratory flows" during their trip to Cairo.

European governments have long been concerned about the possibility of instability in Egypt, a country of 106 million people with difficulty raising foreign exchange and where economic adversity has pushed increasing numbers to migrate.

Many Egyptians claimed to be struggling to make ends meet as inflation approaches all-time highs. But in the last month, Egypt's record deal for Emirati investment, expansion of its IMF program, and steep devaluation of its currency have all relieved some of the financial pressure.

The diplomats said that the conflict in Gaza, where Egypt is trying to mediate between Israel and Hamas and improve humanitarian aid deliveries, and the conflict in neighboring Sudan, which has resulted in the largest displacement crisis in history, have highlighted Egypt's strategic importance.

Speaking alongside Egyptian President Abdel Fattah al-Sisi, von der Leyen stressed the urgency of immediately reaching a ceasefire agreement in Gaza. Given the large number of displaced people in Rafah, both leaders issued dire warnings against any Israeli entry into the area.

Furthermore, Egypt said that after expanding its loan and economic reform program with the IMF, it has secured $20 billion in multilateral backing.

According to a senior EU official, most of the EU funding is newly allocated and was drawn up in close collaboration with the IMF, with $1 billion of the "macro-financial" loan funding to be provided this year.

The official added that the European parliament must approve the remaining $4 billion.

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Migration Concerns in Egypt

In 2016, Egypt closed its north shore to most irregular migration. However, in recent times, there has been an increase in Egyptians attempting to enter Europe through Libya, and the EU is already offering assistance to curb those movements.

Recently, the Greek islands of Gavdos and Crete have witnessed a sharp increase in migrant arrivals, mostly from Bangladesh, Pakistan, and Egypt.

"We must prevent the opening of new migration routes, and we will work very closely with Egypt to ensure that this will be achieved," Greek Prime Minister Kyriakos Mitsotakis said, adding that both countries would try to open up legal pathways on migration.

Activists have criticized Western support for Sisi, who came to power a decade ago after spearheading the overthrow of Egypt's first democratically elected leader.

A crackdown has swept up dissidents from across the political spectrum. At the same time, the state and the army have tightened their hold on the economy, which experts and businesses claimed has slowed down the IMF's demands for structural changes.

Sisi's supporters argued that security measures were necessary to stabilize Egypt and open the door to providing social rights such as housing and jobs.

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