Friday, 20 December 2024

The European Commission provides financial aid worth one billion euros to Egypt

 

Brussels | Belgium -  Eco - Fady Labib : The European Commission decided today, Friday, to disburse one billion euros within days, after fulfilling the political conditions agreed upon with the European Union within the framework of the ongoing comprehensive financial assistance program ...


The European Commission stated on its official website that this financial support will help Egypt cover part of its financing needs for the fiscal year 2024/2025 and ensure macroeconomic stability, while supporting its domestic reform agenda in conjunction with the current International Monetary Fund program.


The European Commission indicated that the Egyptian economy began to recover earlier in the year after the announcement of support from the International Monetary Fund and the European Union, after suffering great pressure on the balance of payments. While the recovery continues, the economy is still affected by the economic effects of the Russian war of aggression against Ukraine and the situation in the Middle East.


Ursula von der Leyen, President of the European Commission, wrote on her personal account on the "X" platform: Today we have decided to disburse one billion euros to Egypt to keep pace with its reform agenda. “We are implementing the comprehensive strategic partnership signed last June in Cairo, for a stronger business environment, more private investment and more good jobs for the Egyptian people,” Der Leyen added.


The European Commission also explained that this installment comes after the Commission concluded that Egypt had taken measures to strengthen macroeconomic resilience by unifying the fragmented exchange rate and improving its public financial management, while expanding the scope of its social security programme.


Progress has been made in the business and investment environment, by increasing transparency on investment and import conditions, and strengthening the role of the Competition Authority. Progress has also been made in promoting the green transformation by adopting the updated Egyptian Sustainable Energy Strategy until 2040 and enhancing private sector participation in renewable energy production.


This agreement, together with the second €4 billion operation currently under discussion with participating legislators, forms an essential part of the comprehensive strategic partnership between the EU and Egypt.


It comes in response to the multiple economic challenges over recent years, exacerbated by the complex geopolitical situation in the Middle East, where Egypt is a key pillar of stability and a strategic partner for the EU.


The European Commission (EC) is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, approving the EU treaties and managing the EU's day-to-day business.

 Commissioners take an oath before the European Court of Justice in Luxembourg, pledging to respect the Treaties and to be fully independent in the performance of their duties during their mandate.

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