EU leaders accused of ‘rewarding repression’ with €7.4bn Egypt deal

European leaders are set to sign off on a €7.4bn deal with Egypt just days after members of the European parliament accused Brussels of “bankrolling dictators”.

The EU-Egypt strategic partnership agreement forms part of the bloc’s latest attempt to stop refugees crossing the Mediterranean and comes less than a year after the EU signed a controversial €150m (£128m) migration and economic pact with Tunisia.

It is understood the deal that leaders are expected to sign off on Sunday, which dwarfs that of Tunisia in value, will include €5bn in soft loans to support economic reforms with €1bn of that as urgent aid for 2024.

The agreement is designed to enhance cooperation in areas such as renewable energy, trade and security while delivering grants, loans and other funding over the next three years to support Egypt’s faltering economy.

Along with the European Commission president, Ursula von der Leyen, those meeting the Egyptian president, Abdel Fatah al-Sisi, on Sunday were the Italian prime minister, Giorgia Meloni, who led on the Tunisian deal last year, Alexander De Croo, the prime minister of Belgium, which currently holds the rotating presidency of the EU, and Kyriakos Mitsotakis, the prime minister of Greece.

European governments have long been worried about the risk of instability in Egypt, a country of 106 million people that has been struggling to raise foreign currency. Economic adversity and poverty have pushed increasing numbers to leave the country in recent years.

Greece and Italy are also concerned about the risk of another refugee crisis both from Gaza and in Egypt, which is hosting about 450,000 refugees from Sudan, according to March UNHCR data.

It is understood a small portion of the of the €2.4bn that is not in the form of loans will be earmarked for support in securing the borders with Sudan and Libya with further aid for hosting refugees.

Another tranche of the package will be set aside for economic stimulus programmes to incentivise investment in business.

Human Rights Watch said the expected deal would “reward Egypt’s autocratic leader Abdel Fatah al-Sisi for preventing migrants’ departures towards Europe”.

It said since he took power in a 2013 coup and became president in 2014 “Sisi’s governments have ruled Egypt with an iron fist”, suppressing opposition, jailing critics and stifling media and civil society.

“Now this abysmal repression is being rewarded with fresh support from the EU,” it said in a statement.

After being sharply criticised by MEPs on Wednesday, the EU said it strived to work with its neighbours and help improve democracy and human rights compliance through partnerships rather than break off relations with them.

The four-page joint declaration to be issued on the deal is expected to include commitments on human rights.

A leak of the statement says: “Egypt and the EU will continue to work on their commitments to further promote democracy, fundamental freedoms and human rights, gender equality and equal opportunities, as agreed in the partnership priorities. The EU stands ready to assist Egypt in the implementation of its national strategy for human rights in alignment with the provisions of the association agreement and the partnership priorities 2021-2027.”

Describing a “strategic and comprehensive partnership”, the declaration also states that the “European Union acknowledges Egypt as a reliable partner, as well as Egypt’s unique and vital geo-strategic role as a pillar of security, moderation and peace in the region of the Mediterranean, the Near East and Africa”.

It also says that the deal is grounded in a commitment to the United Nations charter.