The European Union has signed a $8.05 bn deal with Egypt to help revive its economy. Part of the deal also gives aid to tackle migrant inflow into Europe.

The strategic partnership involves soft loans to support economic changes along with $218mn for managing migration issues.

The deal comes a year after the EU signed a similar controversial $163 million deal with Tunisia.

The delegation was led by European Commission president, Ursula von der Leyen who outlined the vital work played by Cairo in the region.

Italian prime minister Giorgia Meloni said that the deal was signed after “intense, effective diplomatic work” between the EU and Egypt in the past few months.

Along with Meloni and von der Leyen, the other leaders who were part of the delegation included the prime ministers of Greece, Austria, Cyprus and Belgium.

The three-year deal is part of the EU’s attempt to stop refugees crossing the Mediterranean.

Meanwhile, von der Leyen used the occasion to renew a plea for a ceasefire in Gaza, the release of all hostages and urgent aid for Palestinians.

“We are all extremely concerned about the war in Gaza and the unfolding catastrophic humanitarian situation. Gaza is facing famine and we cannot accept this. It is critical to achieve an agreement on a ceasefire rapidly now that frees the hostages and allows more humanitarian aid to reach Gaza,” she said.

The European leaders praised Sisi for the role that Egypt has been playing to bring about a ceasefire along with the US and Qatar.

The bloc has signed similar accords with Turkey, Tunisia, Mauritania and now Egypt, and in the days to come hopes to sign another deal with Morocco, Politico reported.

Following a fall in the number of migrants coming into Europe in 2022, the bloc has seen a rise in 2023 and 2024.