Ursula von der Leyen heads a European delegation to Egypt to announce the new aid package (Al Jazeera)

European Union leaders are expected to announce in Cairo - today, Sunday - a financing package amounting to 7.4 billion euros ($8.06 billion) and strengthening relations with Egypt as part of an effort to stop the flow of migrants across the Mediterranean, and to support Cairo due to the repercussions of the Israeli war on the Gaza Strip.

Reuters quoted a "senior" European Commission official as saying that the funding is expected to include financial aid amounting to 5 billion euros ($5.44 billion), investments worth 1.8 billion euros ($1.96 billion), and grants amounting to 600 million euros ($653 billion).

He stated that emergency funding of one billion euros ($1.08 billion) in financial aid would be disbursed this year, and that the remaining 4 billion euros ($4.35 billion) would require approval from the European Parliament.

The official said that most of the funds were allocated recently, adding that the financing was raised through close cooperation with the International Monetary Fund.

European governments have long been concerned about the risk of instability in Egypt, which has a population of 106 million and has struggled to obtain foreign currency, as economic difficulties have pushed increasing numbers into irregular migration in the past few years.

Difficulties facing Egypt

Inflation is approaching record high levels in Egypt, and many Egyptians say they are finding it difficult to manage their affairs. However, financial pressures on the government have eased recently after Egypt concluded at the end of last month the record Ras El Hekma deal to pump Emirati investments, and it was announced at the beginning of this month that the expansion of the program Borrowing with the International Monetary Fund, the value of the currency was reduced significantly until one dollar became equivalent to 50 pounds.

Diplomats say that Egypt's strategic importance emerged through the ongoing conflict in neighboring Sudan, which caused the largest displacement crisis in the world, and the war in the Gaza Strip adjacent to the Egyptian Sinai Peninsula.

Today, Sunday, European Commission President Ursula von der Leyen heads a delegation that also includes the prime ministers of Italy, Greece, Austria, Belgium, and the Cypriot president.

Egyptian Finance Minister Mohamed Maait said that the government collected a total of $20 billion in support from multiple sources after increasing the loan and proceeding with the economic reform program agreed upon with the IMF.

Egyptian officials say Egypt deserves credit for hosting an estimated 9 million foreign residents and largely preventing irregular migration from its northern coasts since 2016.

But there has been a sharp increase in the number of Egyptians trying to reach Europe via Libya, and the European Union is already providing funding aimed at reducing these flows.

In the past few months, the Greek islands of Crete and Gavdos have witnessed a sharp rise in the number of migrants arriving, most of them from Egypt, Bangladesh and Pakistan, which has increased pressure on ill-equipped authorities and raised fears of a new smuggling route in the Mediterranean.

Source: Agencies