• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
PoliticsEuropean Union
Europe

Egypt’s crisis becomes Europe’s business problem as inflation soars and Suez revenues collapse

By
Sam McNeil
Sam McNeil
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Sam McNeil
Sam McNeil
and
The Associated Press
The Associated Press
Down Arrow Button Icon
October 22, 2025, 10:01 AM ET
President of Egypt Abdel Fattah El-Sisi speak to the press before a meeting with U.S. President Donald Trump at the Sharm El Sheikh International Congress Center October 13, 2025 in Sharm El-Sheikh, Egypt.
Egyptian President Abdel-Fattah el-Sissi will meet with several European leaders during the Brussels summit. Chip Somodevilla/Getty Images

Egypt and the European Union will hold their first summit on Wednesday in Brussels where leaders will discuss security, trade and migration as well as stability in Gaza.

Recommended Video

Egyptian President Abdel-Fattah el-Sissi, European Commission President Ursula von der Leyen and European Council President António Costa are expected to announce increased European economic assistance to Egypt and Egypt’s admission to the EU’s Horizons research incubation program, a 175 billion euro (about $202.7 billion) fund for scientific research and innovation in fields from quantum technology to the space industry.

New deals amid regional tensions

The summit comes as the 27-nation bloc has sought to forge new trade and security deals amidst geopolitical tumult sparked by the combative policies of U.S. President Donald Trump and export controls from Chinese President Xi Jinping.

Part of its approach is a so-called Pact for the Mediterranean in which the EU seeks deeper integration with countries from Morocco to Turkey, including offering European aid in exchange for efforts to slow migration to Europe.

Egypt’s economic woes

Egypt is weathering soaring inflation, as well as instability from the still-smoldering war in neighboring Gaza.

El-Sissi told Costa and other world leaders last week that U.S. President Donald Trump’s Mideast proposal, which aims at ending Israel’s two-year war in Gaza, represents the “last chance” for peace in the region and reiterated his call for a two-state solution, saying Palestinians have the right to an independent state.

The EU is Egypt’s largest trading partner. During the signing of a joint declaration last year, Brussels announced a 7.4 billion euros (about $8.6 billion) aid package for cash-strapped Egypt in the form of loans, investment and support for specific programs such as migration.

The deal injected much-needed funds into the Egyptian economy, which has been hit hard by years of government austerity, the coronavirus pandemic, the fallout from Russia’s full-scale invasion of Ukraine and most recently, the Israel-Hamas war in Gaza. Houthi attacks on shipping routes in the Red Sea have also slashed Suez Canal revenues, which is a major source for foreign currency, by forcing traffic away from the canal and around the tip of Africa. Both Brussels and Cairo have serious concerns over migration.

Europe and Asylum-seekers

Arrivals of asylum-seekers and other migrants fleeing conflict and poverty in the Middle East and Africa for Europe over the past decade helped fuel rising far-right populism and led to stricter border controls that have drawn heavy criticism from human rights groups.

Before the Wednesday summit, the EU’s top diplomat Kaja Kallas met with el-Sissi in Brussels, where he told her that “Europe hasn’t been significantly affected by illegal immigration” because Egypt had thwarted launches since 2016 of many boats of migrants, according to a statement from the president’s office.

El-Sissi should press the EU to do more for Gaza, said Eve Geddie, director of Amnesty International’s European Institutions Office. At the same time, Von der Leyen and Costa should press the former military leader to stop “rampant arbitrary detentions, unfair trials and harsh prison sentences of critics,” she said.

Egypt faces its own migration pressures. While in recent years it has become a point of transit for those attempting the dangerous Mediterranean Sea crossing to Europe, Egypt has for decades been a refuge for migrants from sub-Saharan Africa trying to escape armed conflict and crippling poverty.

Egypt, whose population is 116 million, says there are 9 million migrants in the country, including about 900,000 who are registered refugees and asylum-seekers with the U.N. refugee agency. El-Sissi is also expected to meet King Philippe I of Belgium during his visit.

___

Associated Press writer Samy Magdy contributed to this report from Cairo.

The Fortune 500 Innovation Forum will convene Fortune 500 executives, U.S. policy officials, top founders, and thought leaders to help define what’s next for the American economy, Nov. 16-17 in Detroit. Apply here.
About the Authors
By Sam McNeil
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

texas
Real EstateHousing
Trump’s big housing market solution is dead on arrival, UBS says—its model is Texas from 25 years ago
By Nick LichtenbergApril 18, 2026
1 hour ago
Photo of Donald Trump (left) and Pete Hegseth (right)
Economynational debt
Something is different about Trump’s $1 trillion war on Iran and its stress on the national debt, Harvard Kennedy scholar says
By Sasha RogelbergApril 17, 2026
13 hours ago
Half of Iran’s workforce faces unemployment risk as the U.S.-Israel war’s ‘hidden target’ was the labor market, economist says
EconomyIran
Half of Iran’s workforce faces unemployment risk as the U.S.-Israel war’s ‘hidden target’ was the labor market, economist says
By Jason MaApril 17, 2026
13 hours ago
The $39 trillion national debt could break the all-important U.S. bond market, sparking a ‘vicious’ emergency, former Treasury secretary warns 
EconomyDebt
The $39 trillion national debt could break the all-important U.S. bond market, sparking a ‘vicious’ emergency, former Treasury secretary warns 
By Tristan BoveApril 17, 2026
14 hours ago
trump
EnergyIran
Iran and White House say the Strait of Hormuz is ‘completely open.’ But it definitely isn’t—at least for now
By Jordan BlumApril 17, 2026
15 hours ago
trump
EnergyIran
Trump says Iran to suspend nuclear program, won’t get funds
By Kate Sullivan and BloombergApril 17, 2026
16 hours ago

Most Popular

Pope Leo warned the world is in ‘big trouble’ if Elon Musk becomes the first trillionaire
Success
Pope Leo warned the world is in ‘big trouble’ if Elon Musk becomes the first trillionaire
By Preston ForeApril 17, 2026
23 hours ago
A world going broke: IMF says America's $39 trillion national debt is actually a global problem—and AI may be the only rescue
Economy
A world going broke: IMF says America's $39 trillion national debt is actually a global problem—and AI may be the only rescue
By Nick LichtenbergApril 16, 2026
2 days ago
Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it
Environment
Jeff Bezos pledged $10 billion for climate change. With the 2030 clock ticking, his wife, Lauren Sánchez Bezos, is leading the charge to spend it
By Sydney LakeApril 15, 2026
3 days ago
Older millennials are starting to act like boomers in the housing market—and pulling away from the pack
Real Estate
Older millennials are starting to act like boomers in the housing market—and pulling away from the pack
By Nick LichtenbergApril 17, 2026
1 day ago
Iran has reopened the Strait of Hormuz—but experts say it now holds a card that works ‘almost like a nuclear deterrent’
Energy
Iran has reopened the Strait of Hormuz—but experts say it now holds a card that works ‘almost like a nuclear deterrent’
By Eva RoytburgApril 17, 2026
16 hours ago
Germany already told its workers to ditch four-day weeks and work-life balance. Now the government wants to cut their pay for calling in sick, too
Success
Germany already told its workers to ditch four-day weeks and work-life balance. Now the government wants to cut their pay for calling in sick, too
By Orianna Rosa RoyleApril 16, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.