FM calls upon EU to accelerate second installment to Egypt amid economic impacts of ongoing regional war

CAIRO – 12 March 2026: Egyptian Foreign Minister Badr Abdelatty called upon European Union Commissioner for the Mediterranean, Dubravka Šucic, to accelerate the disbursement of second installment of the overall support package provided to Egypt, amid the negative repercussions of the ongoing military escalation in the Region on the world and Egypt’s economy.

In Mid-January 2026, Egypt secured €1 billion in concessional funding from the European Union, representing the first installment of the second phase of the Macro-Financial Assistance and Budget Support Mechanism (MFA).

The military escalation in the region between Iran from and its allies from one side and US/Israel and their allies on the other side led to a sharp decline of oil production from the Gulf States, whose refineries are being targeted by Iran. As a result, energy prices went up. Also, the war led to a disruption of international shipping lanes and supply chains, which resulted in the decline in Suez Canal revenues.

During a phone call, the two sides also exchanged views on the Mediterranean Charter Action Plan, which aims at preventing, abating, and combating pollution in the Mediterranean Sea area. Minister Abdelatty reviewing Egypt’s vision for the Charter, along with a number of proposed projects and initiatives. He stressed the importance of strengthening integration among Mediterranean countries, confronting common challenges, and taking advantage of economic, social and cultural opportunities.

Abdelatty also briefed the European official on Egypt’s stance towards regional developments. He called for concerted regional and international efforts to reduce the escalation and prioritize the diplomatic way and political solutions.

Abdelatty shed light on the importance of resorting to dialogue and diplomacy to contain the situation. He warned of the danger of the conflict spillover and of undermining the security and stability of the region and the countries of the European Union.