The Pentagon announced the planned withdrawal on Friday, with a department spokesperson subsequently telling Asharq that the pullout is expected to conclude within a year. German Defence Minister Boris Pistorius, responding to the announcement on Saturday, stated that Europeans must take greater responsibility for their security, though he noted the US move was anticipated.

“It was expected that the United States would withdraw its forces from Europe, including Germany,” Pistorius said, estimating the current number of US troops stationed in the country at nearly 40,000. He added that “the presence of American soldiers in Europe, and especially in Germany, is in our interest and the interest of the United States.”

Pistorius stated that “Germany is on the right track” regarding defence self-reliance, pointing to the expansion of its armed forces, the Bundeswehr, alongside increased and accelerated equipment purchases and the construction of military infrastructure.

NATO spokesperson Alison Hart confirmed on the X platform on Saturday that the alliance is communicating with Washington regarding the drawdown.

“We are working with the United States to understand the details of its decision regarding its force posture in Germany,” Hart wrote. “This decision underscores the need for Europe to continue to invest more in defence, and to bear a greater share of the responsibility for our shared security, which we are already seeing progress in since allies agreed to invest 5% of gross domestic product at the NATO summit in The Hague last year.”

Hart maintained that the alliance remains “confident in our ability to provide deterrence and defence as this shift towards a stronger Europe in a stronger alliance continues.”

The Iran War Dispute

The withdrawal follows a public dispute between US President Donald Trump and German Chancellor Friedrich Merz over US strategy in the Iran war. Last week, Trump threatened to reduce US troop numbers in Germany after Merz stated that the United States “did not seek the opinion of Germany or its allies in Europe” prior to launching the conflict. Merz noted he had informed Trump immediately afterwards of his “scepticism about the usefulness of this conflict”.

A senior Pentagon official, speaking to Reuters on condition of anonymity, described recent German statements as “inappropriate and unhelpful,” adding: “The President is responding correctly to these unconstructive statements.”

The official stated that the President “has been very clear about his displeasure with the statements of our allies and their lack of support for American operations that are in their interest.”

The troop reduction will return the US military presence in Europe to approximately pre-2022 levels, before the Russian invasion of Ukraine prompted an enhanced US deployment under former President Joe Biden.

Broadening European Tensions

The Pentagon’s announcement marks the most significant declaration to date of Washington’s intention to reduce its European military footprint, following months of US criticism that European nations have failed to provide adequate support in the Iran war or assume responsibility for their own security.

It remains unclear whether Washington will withdraw additional forces from Europe. Trump indicated on Thursday that he “might” consider withdrawing troops from Italy and Spain.

Reuters reported days ago that an internal Pentagon email detailed options to punish NATO member states that Washington believes have not supported US operations in the Iran war. These options included suspending Spain’s membership in the alliance and reviewing the US position on Britain’s sovereignty claim over the Falkland Islands.

Last month, Trump threatened a comprehensive US trade embargo on Spain after Madrid refused to permit the use of its airspace or military bases for attacks on Iran. The US maintains two significant military bases in Spain: Naval Station Rota and Morón Air Base.

Trump has also clashed with Italian Prime Minister Giorgia Meloni over the Iran war, as well as over his criticisms of Pope Leo XIV. In April, Trump stated that Meloni, previously considered one of his closest allies, “lacks courage” and had “let Washington down”.

US Military Footprint in Europe

As of December 2025, the United States maintained approximately 68,000 active-duty military personnel permanently stationed at European bases, according to the Pentagon’s Defence Manpower Data Centre. This figure excludes temporary rotational forces.

A congressional report indicates the US military is deployed across 31 permanent bases in Europe and holds access rights to 19 additional military sites. The US European Command oversees military operations in the region, operating alongside NATO allies via six commands covering land, naval, air, marine, special operations, and space forces. Headquartered in Germany and Italy, these commands focus on crisis response and security cooperation across Europe and Africa.

US forces are distributed across more than a dozen European nations, with Germany, Italy, and Britain hosting the largest contingents:

• Germany:Hosting roughly half of the total US military presence in Europe, official data places the number at 36,436 troops spread across five bases, including Ramstein Air Base, the largest US installation in Europe. Germany also houses dozens of American facilities, including the headquarters for both US European Command and US Africa Command, and holds vital military assets such as B-61 nuclear bombs.
• Italy:12,662 US troops are stationed at bases including Vicenza, Aviano, Naples, and Sicily.
• Britain:Hosts 10,156 US personnel, the majority of whom belong to the Air Force.
• Spain:3,814 US troops are stationed at naval and air bases near the Strait of Gibraltar.
• Poland:Permanently hosts 369 US troops alongside an estimated 10,000 rotational personnel.
• Romania:Maintains 153 permanent US troops, with an additional rotational presence at facilities such as the Mihail Kogalniceanu base.
• Hungary:Hosts 77 permanent US military personnel in addition to periodic deployments and training exercises.

The post Pentagon to withdraw 5,000 troops from Germany over Iran war dispute first appeared on Dailynewsegypt.

The job creation component supports investments that generate sustainable employment in Egypt and remove investment barriers. This includes, for example, investments in production facilities, equipment, skills development, and workforce training linked to the planned job creation project.

Four categories of investment projects are eligible:

1. Not-for-profit projects (no revenue generation):
IFE covers up to 90% of the investment costs.

2. Not-for-profit projects (with revenue generation):
IFE covers up to 75% of the investment costs.

3. For-profit projects (majority of jobs created at independent 3rd party entities):
IFE covers up to 35% of the investment costs.

4. For-profit projects (majority of jobs created at the applicant’s entity/ies):
IFE covers up to 25% of the investment costs.

The Facility awards grants ranging from EUR 800,000 to EUR 10 million per project for the job creation component. The Facility only co-finances mature projects that have not yet started and that offer reasonable chances for being operationally and financially sustainable. Applicants are obliged to contribute own funds to complete the project finance.

New in 2026: In addition to the job creation grant, applicants can apply for co-financing of training measures aimed at improving the quality of training for skilled workers, primarily targeting the Egyptian labour market, with an additional perspective for potential employment opportunities in Germany. While the job creation component is open to all sectors, this subcomponent is envisaged to focus on the following sectors: main and ancillary construction industry, metal and electrical industry, education and social services, food processing, transport and logistics, IT, the health sector, as well as the hotel and hospitality industry. Eligible activities include, for example, the construction, refurbishment and equipment of buildings, classrooms or workshops suitable for training, as well as language training or technical upskilling aligned with relevant labour market needs. Concept notes including this component will be treated with preference during the evaluation process.

This is how the application process works: Applications for projects in Egypt can be submitted from 15 April to 30 June 2026. In a first step, the Facility will make a pre-selection from the submitted concept notes. In a second phase, the selected applicants will be invited to submit fully elaborated project proposals, which will then be evaluated in detail. Successful applicants will be offered a grant contract.

The competition criteria are available on: invest-for-jobs.com/en/ife-download-center
IFE provides a Helpdesk for questions related to the application process and the grant components. This helpdesk can be contacted via email under the following address:

helpdesk-ife@invest-for-jobs.com

In addition, enquiries can be sent to cfp-ife.2026@invest-for-jobs.com

English language webinars will be organised while the Call for Proposals is open. Interested parties will get in-depth information on the objectives of this grant facility, the application criteria, and the application process and platform. The webinars will take place on 23 April, 7 May, 21 May and 11 June 2026. To receive the link, please write to: cfp-ife.2026@invest-for-jobs.com
or visit our website: invest-for-jobs.com/en/call-for-proposals-civ-egy-mar-2026

This is also where you can find the link to the application platform.

For more information about the Facility Investing for Employment: invest-for-jobs.com/ife

The Facility Investing for Employment is an investment mechanism created by KfW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) as an integral part of the Special Initiative “Decent Work for a Just Transition”. The Special Initiative operates under the brand Invest for Jobs.

The post The Facility Investing for Employment launches a New Call for Proposals in Egypt first appeared on Dailynewsegypt.

Daily News Egypt sat down with Steve Lutes, Vice President of the US Chamber of Commerce for Middle East Affairs, to explore the realities of US-Egypt economic ties and the challenges of turning Egypt’s potential into execution.

How do you assess Egypt’s performance in attracting investment? What is needed to improve?

Every government faces the challenge of becoming an attractive destination. Egypt already enjoys advantages that are difficult to replicate, most notably its geographic location. The key question is how to fully leverage that position.

Egypt also benefits from trade agreements with African markets. While I am not an economist, many experts anticipate strong growth across Africa in the coming years, which presents a significant opportunity. We often speak about Egypt as a gateway to Africa, but the priority now is to translate that concept into practical reality. This requires expanding dialogue frameworks beyond bilateral engagement to more multilateral cooperation.

What role can the US Chamber play in promoting economic support for Egypt?

The Chamber maintains ongoing engagement with US policymakers to highlight Egypt’s strategic economic importance, its role in regional stability, and its value as a trade and investment partner, particularly amid rising geopolitical tensions.

Through the US-Egypt Business Council, we consistently advocate for strengthening economic resilience, ensuring market stability, and supporting private sector-led growth. During periods of crisis, we also communicate the impact of economic shocks on supply chains, investor confidence, and reform trajectories. This helps foster a more stable political and economic environment conducive to financing and sustainable investment.

There’s a perception that Egypt’s private sector lacks equal opportunity. How do you see it?

There is always room for improvement; no system is perfect. From what I hear, there is clear government intent to expand privatisation and strengthen the private sector’s role. Naturally, businesses would like to see this process move faster.

Recent government changes suggest a greater willingness to accelerate reforms. This is creating more opportunities for private sector participation across a range of industries, whether through domestic firms or partnerships with international companies, including American ones.

With China, Türkiye, Germany, and Russia active in Egypt, where does the US stand?

It is important to recognise that different countries operate under different economic models. China and, to a large extent, Russia rely on state-led investment approaches. The United States operates very differently.

The US government does not direct companies where to invest. Decisions are made by private firms based on market conditions. If the investment environment is attractive, companies will come. If not, they will look elsewhere.

Can Egypt truly become a regional hub?

Absolutely. Egypt has the potential to serve not only as a gateway to Africa, but also to the Mediterranean and Europe. The Suez Canal remains a critical artery for global trade, whether for goods, energy, or even digital connectivity through submarine cables.

However, the real challenge is not promotion; it is execution.

What do you mean by execution?

Attracting American investment requires a more tailored approach than in state-led systems. In countries like China, agreements are often concluded at the government level, with companies following.

In the United States, each company must be engaged individually. Some are looking to expand into Africa, others have capital ready to deploy, while others require detailed feasibility studies. This makes the process more complex and demands targeted engagement and customised analysis.

Does this make US investment more difficult to secure?

It does make it more demanding, but also more sustainable. American companies tend to take a long-term view. They invest in local hiring, integrate into the market, and build enduring business operations.

What can we expect from the second Egyptian-American Economic Forum?

The objective is to frame the relationship strategically, rather than as a one-off event. There is a real opportunity to reinforce Egypt’s role as a gateway to Africa, including by involving African stakeholders and presenting concrete, investment-ready projects.

How can interest be converted into real investment?

American firms require precise, actionable information, not general messaging. When opportunities are clearly defined and well-structured, it becomes much easier to convert interest into investment.

Sector-focused discussions and direct engagement are essential to this process.

Why has Egypt-US cooperation in Africa been limited?

The Chamber continues to view Egypt as a key platform for US companies seeking to expand into Africa, particularly in sectors such as logistics, construction, energy, agriculture, and services.

However, progress depends on clearer project pipelines, the use of innovative financing tools such as blended finance, and stronger coordination between governments and development institutions.

What guarantees do US investors seek in tech and infrastructure?

Investors prioritise regulatory stability, transparency, effective dispute resolution mechanisms, and the availability of foreign currency. They also look for clear frameworks for public-private partnerships and predictable licensing timelines.

In the technology sector, data governance, intellectual property protection, and cybersecurity are especially critical.

Beyond energy, which sectors are most attractive?

Key growth areas include logistics, ICT, fintech, healthcare, pharmaceuticals, and export-oriented manufacturing.

What is the Chamber’s vision for the future of the Egypt-US economic partnership?

The relationship is evolving into a more strategic partnership built on resilience, innovation, and shared responsibility. Key areas of focus include energy security, regional stability, supply chain diversification, and human capital development.

The post Egypt poised to become gateway to Africa, Europe: Steve Lutes first appeared on Dailynewsegypt.

Against this background, the recent *Youth in Germany 2025* study offers more than empirical insight; it opens a window into what I would describe as a deeper structural tension within the modern state. While the report itself is not an institutional publication of the Hertie School, it is closely connected to its intellectual environment through the contribution of Professor Klaus Hurrelmann, situating it within a broader tradition of rigorous, policy-relevant research.

At first glance, the findings are familiar: psychological strain, economic pressure, digital overuse, and rising openness to emigration. Yet the analytical value of the study lies not in these indicators individually, but in the paradox they collectively reveal. Young people remain willing to work, to contribute, and to assume responsibility. What is weakening is not motivation, but confidence in the system’s ability to translate effort into outcome.

This distinction is critical. It suggests that the issue is not one of performance failure, but of meaning failure. In other words, we are not simply observing a crisis of resources or policy effectiveness, but a disruption in the relationship between individual effort and its perceived fairness and purpose. What emerges here is not merely a descriptive crisis; it is an empirical manifestation of what I conceptualise as a crisis in the governance of meaning.

By governance of meaning, I refer to the capacity of the state to render its actions intelligible, coherent, and normatively justifiable to its citizens. Modern states do not rely on performance alone; they rely on the ability to explain that performance in ways that sustain trust. When this explanatory capacity weakens, legitimacy begins to erode, even when institutions continue to function effectively.

The study provides multiple indications of this shift. Expectations around economic security, housing, social justice, and political participation remain central to how young people evaluate the system. However, what appears to be declining is the credibility of the link between these expectations and actual outcomes. The issue is not that the system produces nothing, but that what it produces is no longer fully convincing.

This helps explain the volatility in political preferences. The fragmentation observed among young voters is not merely ideological polarisation; it reflects a search for meaning. Support moves across parties not because of stable conviction, but because no single narrative fully captures what fairness, security, and future prospects should look like. In this sense, the political field becomes a space of interpretive competition.

Migration intensifies this dynamic. The study shows diverging expectations, from calls for stricter control to support for openness and integration. Yet what matters analytically is not the divergence itself, but what it represents. Migration becomes a site where deeper questions about fairness, distribution, and belonging are negotiated. It is less a policy issue than a test of how meaning is constructed within the state.

This is why debates around migration often appear disproportionate to their immediate scope. They are not only about borders or integration, but about whether the system operates according to a logic that citizens can recognise as fair. When that logic becomes unclear, even coherent policies may lose their legitimacy.

What the study ultimately reveals, therefore, is not a society in collapse, but a society under interpretive strain. Germany remains institutionally strong and economically capable. Yet even within such a context, the alignment between performance and meaning is no longer guaranteed.

This insight extends beyond Germany. Across contemporary states, the challenge is shifting. It is no longer sufficient to design efficient policies; the central question is whether those policies can be embedded within a framework of meaning that citizens understand and accept. The problem is not only what the state does, but how what it does is perceived, interpreted, and justified.
This perspective reflects a broader line of research I have been developing on what I describe as the “governance of meaning,” where legitimacy depends not only on performance, but on the state’s capacity to render that performance intelligible and normatively credible to citizens.

From this vantage point, the study reads less as a warning of decline and more as an early signal of structural transformation. It suggests that the mechanisms through which trust is produced are under pressure, even in high-capacity states.
The implication is direct. Efficiency alone is no longer sufficient. A state must not only deliver outcomes; it must also sustain a shared understanding of why those outcomes are fair, necessary, and meaningful.
When a state fails to explain itself, it does not simply lose efficiency; it loses legitimacy itself. Because legitimacy, at its core, is not performance alone; it is the continuous ability to justify the meaning of that performance.

Dr Ramy Galal is a governance and institutional reform specialist focusing on state capacity, accountability, and the design of effective public institutions. His work examines how institutional arrangements shape policy outcomes and government performance, particularly in emerging and middle-income contexts. He also engages with the concept of governance of meaning as an analytical lens for understanding how authority, narratives, and interpretation influence policy environments.

He is an Assistant Professor and a former Senator, bringing a combination of academic expertise and hands-on experience across both legislative and executive domains. He previously served as an advisor and official spokesperson for Egypt’s Ministry of Planning and Economic Development, with direct involvement in policy design, government decision-making, and implementation processes at the centre of government.

He holds a PhD from Alexandria University, a master’s degree from the University of East London, and a diploma in public administration from the University of Chile.

The post Opinion | Is Germany losing confidence? A Hertie-informed perspective first appeared on Dailynewsegypt.

In separate phone calls with German Foreign Minister Johann Wadephul and Canadian Foreign Minister Anita Anand, Abdelatty reviewed Egypt’s intensive efforts with regional and international partners to halt military escalation. The minister presented proposals aimed at achieving a calm to avoid regional volatility, while highlighting the “dire economic consequences” of continued tensions.

Abdelatty emphasised the necessity of maintaining a diplomatic path and dialogue to contain the “dangerous situation” currently facing the region, stating that such measures are vital for maintaining regional security and stability. He assured his counterparts that Egypt will continue its intensive contacts and sincere efforts to end the war.

According to the discussions, the German and Canadian foreign ministers expressed their appreciation for the “sincere efforts” made by Egypt, Turkey, and Pakistan to reduce escalation and prioritise diplomatic solutions. The parties agreed to maintain coordination and consultation in the coming period to support regional security.

In a separate meeting in Cairo on Monday, Abdelatty met with Lauri Hussar, the Speaker of the Estonian Parliament, to discuss enhancing bilateral cooperation and regional developments. The minister noted the growth of Egyptian-Estonian relations in recent years and expressed a joint desire to elevate cooperation, particularly in trade and investment, citing “promising investment opportunities” within the Egyptian economy.

Abdelatty called for increased parliamentary cooperation through exchange visits and the activation of parliamentary friendship associations. He also advocated for expanded cultural and educational dialogue, academic exchanges, and capacity building, specifically in the fields of cyber security, artificial intelligence, digital governance, and tourism.

During the talks with Hussar, the foreign minister addressed the “delicate stage” the region is traversing, stressing the need for wisdom to defuse tension. The meeting covered several regional files, most notably the Palestinian cause, the situations in Sudan, Lebanon, and Libya, and the issue of Egyptian water security.

For his part, the Estonian Speaker expressed appreciation for Egypt’s constructive role in supporting stability amidst complex regional crises. Hussar praised Egypt’s continuous efforts to contain tension and its pursuit of international peace and security.

The post Egypt FM Abdelatty holds talks with Germany, Canada and Estonia to contain regional tensions first appeared on Dailynewsegypt.

In an interview with Daily News Egypt, German Ambassador to Egypt Jürgen Schulz discusses the current state of bilateral relations, highlighting growing business interest, key investment trends, and the two countries’ joint push to position Egypt as a regional hub for clean energy.

What is the current volume of trade between Egypt and Germany, and what are the growth expectations for the coming year?

Germany is Egypt’s fifth-largest trading partner and its most important partner within the European Union, with bilateral trade currently amounting to around €5.5bn. This figure clearly reflects the depth of our economic relationship.

While there is no specific numerical forecast for the coming year, we are witnessing growing interest from German companies seeking to expand their activities in Egypt or to enter the market for the first time. In addition, Egyptian exports appear to be on an upward trajectory. These trends give us confidence in a positive outlook for bilateral trade going forward.

What is the current level of German investments in Egypt, and which sectors are attracting the highest investment?

Around 1,600 German companies are currently operating in Egypt. This in itself demonstrates the depth of German engagement in the Egyptian market. These companies are active across a wide range of key sectors, including machinery and industrial supplies, chemicals, infrastructure, automotive components, water management, and energy.

In addition, we are seeing growing interest in production and service-oriented investments, particularly in regional service hubs, IT services, and call centres. This is strongly supported by Egypt’s skilled workforce and the availability of German-speaking talent, which makes the country an increasingly attractive location for such activities.

Are there plans for new German companies to enter the Egyptian market, and which industries are they targeting?

Over recent years, we have observed increasing interest from German businesses in expanding their presence in Egypt or entering the market for the first time. This reflects growing confidence in Egypt as an industrial and investment destination.

Well-known German companies such as Bosch have expanded their presence and manufacturing activities in Egypt in recent years. These developments underline the attractiveness of the Egyptian market for German industry and point to continued momentum in our economic cooperation.

What future investments are being considered, particularly in energy and renewables, manufacturing, and infrastructure?

Germany will continue to support the expansion of renewable energy through Egypt’s NWFE programme. The German government is particularly focused on financing the modernisation of Egypt’s electricity grid. This will, in turn, enable further private sector investment in solar and wind energy facilities and support the broader energy transition.

Are there any upcoming German trade missions to Egypt next year, and if so, when are they planned and which sectors will they focus on?

German businesses are constantly exploring opportunities, including in Egypt. Often, companies travel individually to meet potential partners and customers. At times, larger groups of German businesses visit as part of organised delegations.

For example, the Euro-Mediterranean Arab Association (EMA), a German business association focused on the region, has organised business missions to Egypt. In addition, during meetings of the Joint Economic Commission between the German and Egyptian governments, German companies have participated to deepen engagement with their Egyptian counterparts. The sectors covered during these engagements have included industrial production, business services, and machinery.

How can Egypt attract more German SMEs (Mittelstand) to invest locally, and what support mechanisms exist?

To attract more German small and medium-sized enterprises—the Mittelstand—Egypt’s key strengths lie in reliability, transparency, and long-term predictability. Clear and efficient administrative procedures, a stable regulatory environment, and fair market conditions are particularly important for SMEs, which tend to take a long-term perspective when investing abroad.

Germany supports this process through well-established mechanisms. The German-Arab Chamber of Industry and Commerce (AHK Egypt) actively assists German SMEs by providing market information, facilitating business contacts, and organising delegation visits and trade fair participation. In addition, programmes such as “Partnering in Business with Germany” help to build lasting partnerships between German and Egyptian companies. Together, these instruments lower entry barriers, build trust, and encourage the German Mittelstand to invest and grow locally in Egypt.

Are there upcoming agreements or plans regarding debt-swap programmes between Egypt and Germany?

Germany and Egypt are currently implementing two active debt-swap agreements. These programmes demonstrate our long-term commitment to sustainable development and social stability in Egypt. The current arrangements are set to run until mid-2027, as successive debt repayments are being swapped. Debt-swap mechanisms have proven to be an effective and flexible instrument in our cooperation and may continue to play an important role in the future.

How is Germany supporting Egypt through NWFE to enhance energy, water, or food security?

Germany has been the primary partner country of Egypt’s NWFE programme, which plays a central role in enhancing energy, water, and food security through an integrated approach.

Our primary focus within NWFE is on the energy pillar, where Germany is supporting the expansion of renewable energy and, in particular, the modernisation of Egypt’s electricity grid. This is essential to integrate increasing volumes of wind and solar power and to unlock significant private sector investment. By strengthening Egypt’s energy system, we contribute to the broader stability and sustainability of the entire nexus.

Are there plans to expand funding or technical assistance under these programmes in priority sectors?

Yes, Germany will continue its support through targeted funding and technical assistance in priority sectors. In the field of energy transition and green hydrogen, we combine financial support with policy and technical cooperation.

This includes grant funding for project preparation, concessional loans to de-risk early-stage investments, and mechanisms that help link future production with international demand. In parallel, we provide technical assistance to support regulatory frameworks, grid integration, and institutional capacity building.

This holistic approach is designed to ensure that investments are sustainable, scalable, and aligned with Egypt’s long-term development priorities. We see this as a dynamic process and remain open to expanding our engagement where it can deliver the greatest impact.

Are there specific German companies planning projects in Egypt related to green hydrogen production or energy transition?

One of the most advanced initiatives in this field is the Egypt Green Hydrogen Project, which brings together an international consortium and is strongly supported by Germany. The project is designed to produce around 259,000 tonnes of green ammonia annually from 2027 onwards.

Germany is supporting this flagship initiative through targeted instruments, including €30m from the PtX Development Fund and a long-term offtake framework under the H2Global mechanism, with a volume of approximately €397m.

Are there ongoing negotiations or upcoming projects involving German companies in solar, wind, hydrogen, or energy storage?

Germany and Egypt remain in continuous dialogue to further develop their longstanding development cooperation. Egypt continues to be a key partner for Germany, particularly in the areas of renewable energy and sustainable development, and discussions on future projects are ongoing.

How can Egypt and Germany collaborate to position Egypt as a regional hub for clean energy exports?

Egypt and Germany can work together very effectively to position Egypt as a regional hub for clean energy exports. The pathway is clear: it requires the continued expansion of renewable electricity generation and the modernisation of the electricity grid, including through initiatives such as the NWFE platform.

A strong and flexible grid is essential to integrate large volumes of wind and solar energy and to enable the scaling up of green hydrogen production for both domestic use and export.

At the same time, this must be supported by a streamlined and predictable regulatory framework, as well as tailored financial instruments that reduce risks for investors. Germany contributes to this approach through policy dialogue, technical assistance, and innovative financing mechanisms that connect Egyptian production with European demand.

By aligning infrastructure, regulation, and financing, both countries can unlock Egypt’s full potential as a competitive and reliable supplier of clean energy to the region and beyond.

Are there joint initiatives to facilitate B2B partnerships between Egyptian and German companies?

Yes, this is a core component of our work. The German Embassy in Cairo, together with the German-Arab Chamber of Industry and Commerce (AHK Egypt), actively brings German and Egyptian companies together.

We support business delegations, facilitate participation in trade fairs, and create platforms where companies can connect, exchange expertise, and develop long-term partnerships.

The post Egypt-Germany economic ties gather momentum across trade, investment, and green energy: Ambassador Jürgen Schulz first appeared on Dailynewsegypt.

“If you think you can do it better, go ahead,” Rubio shot back, his voice audibly raised. “We’ll step back.”

That exchange — described to Axios by three sources who witnessed it at the G7 foreign ministers’ meeting in France last Friday — has crystallised what Western officials and analysts have quietly feared for months: the transatlantic alliance forged over eighty years of shared security architecture is fracturing in real time. And the war in Iran, now consuming American diplomatic bandwidth and military resources, has accelerated a crisis of trust that Ukraine’s war exposed but did not create.

The Confrontation: An Alliance Argument in Full View

The Kallas–Rubio confrontation did not erupt without context. During the G7 session dedicated to Ukraine, Kallas — Estonia’s former prime minister and one of Europe’s most hawkish voices on Russia — reminded Rubio of a commitment he had made at the previous year’s meeting: that if Russia continued to obstruct American-led peace efforts, Washington would lose patience and take additional steps against the Kremlin.

“A year has passed, and Russia has not moved,” she told him, according to the sources. “When does your patience run out?”

Rubio’s response, suggesting the Europeans could simply take over diplomacy if they believed they could manage it better, drew immediate alarm from other European foreign ministers present, several of whom intervened to stress their continued desire for American engagement in mediation efforts. By the end of the meeting, Rubio and Kallas held a brief bilateral exchange on the sidelines in an attempt to defuse the atmosphere.

A ‘Frank Exchange’ — or Something More?

Speaking to journalists after the meeting, Rubio offered a strikingly different version of events. “These meetings are mostly thanking America for the role it has played,” he said, “and appreciation for the mediation role we tried to play in this war between Russia and Ukraine. No one is yelling or raising their voice or saying anything negative.”

A State Department official offered a more measured gloss: “This was a frank exchange of views — and that is the point of diplomacy.”

The gap between those characterisations and the accounts of the three first-hand witnesses is itself revealing — a microcosm of the broader information management challenges now surrounding transatlantic relations on Ukraine.

The Deeper Fracture: European Fear of a US–Russia ‘Grand Bargain’

The G7 altercation is the most vivid public symptom of a deeper structural anxiety now gripping European capitals. According to sources who spoke to The Times, senior officials in Britain and across the EU have grown increasingly alarmed by the possibility that the United States, now pivoting major resources toward the Levant, could strike a bilateral deal with Russia — one that trades European security guarantees for American strategic interests elsewhere.

“It is no longer the worst-case scenario that the Americans step back from European security,” one senior European official told The Times. “The worst-case scenario is that they step back and then turn against us.”

European officials expressed explicit concern, according to the same sources, that President Donald Trump may be contemplating a “grand bargain” with Moscow conducted over Europe’s head — something they described as unthinkable five or six years ago.

A new report published Friday by members of the British parliament reinforced the alarm, warning that Europe must be capable of fighting alone in “worst-case scenarios” — a formulation that would have been inconceivable in NATO communiqués a decade ago.

The Iran Variable: How a New Front Widened an Old Fault Line

The war in Iran has not merely distracted Washington from Ukraine — it has actively complicated the transatlantic equation. European anxiety intensified after the United States granted waivers permitting the sale of Russian oil at higher price bands, a decision read by European capitals as an implicit concession to Moscow timed alongside the Levantine military campaign.

On Ukraine specifically, American diplomatic momentum appears to have stalled. A senior Ukrainian delegation travelled to Miami last weekend for talks with Trump envoys Steve Witkoff and Jared Kushner. Ukrainian officials afterwards indicated that little substantive progress had been made and that Washington’s focus remained almost entirely fixed on Iran.

Trump’s ‘Paper Tiger’ Broadside: NATO Under the Sharpest Attack Yet

If the G7 episode reflected private tensions, President Trump’s public remarks at the Future Investment Initiative conference in Miami on Thursday marked a new escalation in his running assault on the Atlantic Alliance.

“I am very frustrated with NATO,” Trump declared. “They didn’t come to help the United States” in the Iran campaign. He described asking French President Emmanuel Macron for assistance and being told ships would be dispatched — but only after hostilities ended. A similar response, he said, came from British Prime Minister Keir Starmer regarding aircraft carriers: “Maybe in a month or two.”

“That is NATO,” Trump said, “and I always said NATO was a paper tiger.” He added, “We help NATO, but they will never help us.”

Germany, ‘Not Our War’ — and a Pointed American Rejoinder

Trump said German Chancellor Friedrich Merz had told him that the Iran conflict was “not our war and has nothing to do with us” — a position Trump pointedly contrasted with America’s continued support for Ukraine, which he argued Washington could equally have declined. “If I were president, that war would never have happened,” he added.

Trump also criticised NATO members for failing to answer his call to reopen the Strait of Hormuz, calling them “cowards” and repeating that the alliance without American participation amounted to little more than a diplomatic fiction.

The remarks follow a year of sustained pressure by Trump on European allies over defence spending and trade, as well as threats — treated increasingly seriously in Brussels and London — to advance territorial claims over Greenland.

The Architecture of Mutual Distrust

What Paris and Miami have together produced this week is not an isolated diplomatic incident but a condensed portrait of a structural realignment: the United States under Trump is operating as a transactional power in a system built on the assumption of a rules-based, multilateral architecture underwritten by American commitment.

The sources who spoke to Axios were careful to frame the Kallas–Rubio exchange as evidence not of personal animosity but of structural distrust — a sentiment now widespread across capitals that have, for decades, calibrated their defence postures on the assumption that Article 5 guarantees are unconditional.

The emerging European response — accelerated independent rearmament, the development of bilateral security compacts outside the NATO framework, and parliamentary calls for strategic autonomy — suggests that at least some European governments have begun treating American commitment as a variable rather than a constant.

Outlook: A Long-Deferred Reckoning

In the brief bilateral conversation that followed the G7 session, Rubio and Kallas reportedly worked to smooth the surface. But the underlying terrain had not changed. A year after the commitment Kallas cited was made, Russia remains in Ukraine, American patience has produced no publicly quantifiable cost for Moscow, and the Iran conflict has reshuffled every geopolitical priority.

For European governments watching Trump’s Miami remarks alongside the Paris confrontation, the strategic calculus has shifted. The question Kallas asked — “when does your patience run out?” — may increasingly be the one Europe is directing not at Washington, but at itself.

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During his meeting with the German ambassador, Eissa expressed Egypt’s appreciation for its long-standing development partnership with the Germany, describing it as one of Egypt’s largest European development partners.

He noted that the current cooperation portfolio between the two countries spans several key sectors, including energy, water, sanitation, irrigation, solid waste management, and efforts to enhance private sector competitiveness.

Eissa also reviewed the “Invest for Jobs” initiative implemented by the KfW Development Bank, which provides grants to support investment projects through a competitive mechanism that selects proposals with strong potential to create employment opportunities.

He highlighted several sectors that could benefit from the initiative, including construction and related industries, metal and electrical manufacturing, education and social services, food industries, transportation and logistics, information technology, and the hospitality sector.

The Deputy Prime Minister also addressed the Egyptian-German debt swap programme, describing it as an innovative mechanism supporting Egypt’s green transition. He pointed to the possibility of launching additional phases of the programme targeting improved energy efficiency in the industrial sector, green hydrogen projects, and technical education.

Both sides emphasised the importance of continuing to strengthen economic and development cooperation between Egypt and Germany and supporting joint initiatives that contribute to sustainable development, increased investment, and job creation.

In a separate meeting with the Indian ambassador, Eissa highlighted the deep historical ties between Egypt and India and the steady progress achieved in bilateral relations, particularly in the economic, trade, and investment fields.

He reaffirmed the Egyptian government’s commitment to expanding bilateral cooperation and opening new avenues for partnership between the two countries.

Eissa said the meeting provided an opportunity to explore future cooperation prospects, particularly in light of Egypt’s promising investment opportunities. He also stressed Egypt’s interest in strengthening cooperation with India within the framework of the strategic partnership between the two countries, especially following Egypt’s accession to BRICS, which offers additional opportunities to expand economic and development collaboration.

The Deputy Prime Minister also reviewed the government’s ongoing restructuring of economic authorities and state-owned companies, as well as its asset offering programme aimed at maximising the value of state assets and attracting additional local and foreign investment.

He explained that the programme includes offering stakes in several major institutions and companies across multiple sectors, including banking and financial services, energy, infrastructure, logistics, insurance, and pharmaceuticals.

The initiative presents promising opportunities for international investors to enter the Egyptian market through public offerings or strategic partnerships, he said, inviting Indian companies to participate in the programme.

The meeting also discussed prospects for expanding cooperation between Egypt and India in emerging fields such as innovation, technology, and digital transformation, in addition to supporting startups and strengthening collaboration between innovation ecosystems in both countries.

The two sides further explored ways to encourage greater Indian direct investment in Egypt across various sectors, particularly within the Suez Canal Economic Zone.

Eissa also praised the existing cooperation between the two countries in capacity building and government training through the Indian Technical and Economic Cooperation Programme (ITEC), which has helped train a large number of Egyptian professionals. He welcomed the recent increase in training scholarships allocated to Egypt.

The Deputy Prime Minister said Egypt is interested in expanding this cooperation through more specialised training programmes and joint workshops, as well as exploring opportunities for postgraduate scholarships at Indian universities to support knowledge exchange and institutional capacity building.

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The participation is part of a broader strategy to expand overseas, boost exports, and open new markets for Egyptian-made products.

Mahmoud El Zenouki, CEO of Zinox El Zenouki and Master, said Ambiente represents a key milestone in the companies’ international growth plans, serving as a global platform that brings together leading brands, manufacturers, importers, and distributors.

“Maintaining a strong presence at major trade fairs—particularly Ambiente—allows us to engage directly with key importers and partners while showcasing the quality and design of our products alongside global competitors,” he added.

At the exhibition, Zinox El Zenouki showcased its latest stainless-steel cookware collections, combining durability with contemporary design and meeting the highest European and international quality standards. Meanwhile, Master for Household Cookware presented its newest cast cookware innovations, focusing on practical, user-oriented solutions for modern kitchens.

El Zenouki noted that the 2026 exhibition builds on previous international experiences but is part of a wider expansion strategy to strengthen the global positioning of Egyptian brands and diversify export channels.

The companies’ expansion plans target European markets, with a focus on Eastern Europe, as well as entry into the U.S. market. El Zenouki highlighted that recent global trade developments, including tariffs and U.S. trade policies, have created competitive opportunities for Egyptian products compared with Chinese and European alternatives, particularly in terms of quality-to-price value.

He added that Ambiente also serves as an annual business hub, enabling intensive discussions with existing and potential partners, presenting new products, and laying the groundwork for long-term commercial collaborations.

“We strongly believe that Egyptian industry can compete globally. Participation in major international exhibitions provides a real opportunity to showcase this progress and reinforce a professional image of Egyptian-made products in the household cookware sector,” El Zenouki concluded.

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In his address, El-Khatib said the forum comes amid major global shifts, as the world moves towards resilience, geographical proximity, and trusted partnerships, making strategic industrial cooperation more critical than ever.

He noted that economic relations between Egypt and Germany are historic and built on trust and real investment, with more than 1,500 German companies currently operating in Egypt and total investments estimated at around $4.9bn.

The minister added that bilateral trade between the two countries reached approximately $5.1bn in 2025 under the Egypt–EU Association Agreement, which provides preferential market access.

El-Khatib said Egypt’s unique strategic location, supported by modern infrastructure, enables it to connect Europe, Africa and the Middle East, allowing German companies to integrate into global supply chains, maintain competitiveness, and serve multiple markets from a single production base.

He noted that Egypt has invested around $550bn over the past decade in infrastructure projects, including roads, ports, logistics corridors, industrial zones, and new cities.

El-Khatib said Egypt has implemented fundamental economic reforms focused on targeting inflation rather than controlling the exchange rate, with inflation declining from levels close to 40% to around 12%. He added that foreign reserves have exceeded $50bn, while remittances from Egyptians abroad rose from about $18bn to nearly $37bn, reinforcing stability and long-term predictability for industrial investment.

He also pointed to the success of the fiscal reform programme and improvements in the business environment, which focus on simplification, certainty, and easing administrative burdens. Tax revenues increased by around 35% — the highest annual growth since 2005 — without imposing additional burdens on companies, alongside a review of fees and non-tax charges to enhance transparency and predictability.

El-Khatib highlighted trade facilitation efforts and cost reductions, noting that trade and logistics costs fell by around 65%, generating direct savings estimated at $1.5bn. He said Egypt recorded its lowest trade deficit since 2010 at $34.2bn, while total trade reached a record $132bn.

He added that Egypt is developing a digital platform offering more than 460 permits, fees, and services covering all stages of company incorporation, licensing, and operations. Preparations are also under way to launch the Egyptian Trade Platform, which will allow investors to access all trade-related information by entering an HS code, improving transparency, efficiency, and reducing time and costs.

El-Khatib said Egypt combines strong cost competitiveness with robust human capital and access to a wide range of global markets through its network of trade agreements, including with the European Union, Africa under the AfCFTA, EFTA countries, the United States, and others.

He highlighted renewable energy as a key pillar of Egypt’s competitiveness, noting its capacity to deploy hundreds of gigawatts of solar and wind power, including large-scale projects in the Western Desert and innovative solutions such as floating solar energy. This positions Egypt as a regional hub for green industrial production, low-carbon exports, and potentially the export of green electricity to Europe and neighbouring markets.

El-Khatib said Egypt is opening broad avenues for cooperation with German companies in strategic sectors, including the automotive industry and components, advanced industrial inputs, energy and renewable energy, green hydrogen, low-carbon exports, and advanced technologies such as electronics and semiconductors.

He added that Egypt is ready to deepen investment partnerships with German companies, noting that the next phase of Egyptian–German relations will focus on joint production, while continuing to engage with investors to improve the investment climate.

For his part, Stefan Rouenhoff said Egypt’s expansion in railway projects and transport networks represents a pivotal step towards building modern and sustainable infrastructure that supports the movement of people and goods nationwide. He noted that these networks enhance domestic connectivity, serve around 90% of society, and open new business opportunities while improving economic efficiency and quality of life.

Rouenhoff added that German companies are showing growing interest in expanding investments in Egypt, driven by extensive infrastructure development and improvements in the business environment. He cited Siemens’ projects in transport and energy as a successful model of industrial partnership and technology transfer.

He said bilateral relations are grounded in a long history of economic, educational, and cultural cooperation, providing a strong foundation for a new phase of partnership. Egypt’s strategic location, he added, enhances its appeal as a regional hub for manufacturing and exports to Asian and African markets.

Rouenhoff said key areas for cooperation include conventional and renewable energy, infrastructure and transport, industry, and technology, supporting the economic interests of both countries and fostering future growth.

On the sidelines of the forum, El-Khatib and Rouenhoff signed the minutes of the seventh meeting of the Egyptian–German Joint Economic Committee.

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