European Union plans to expedite financial aid to Egypt, bypassing usual safeguards
Share and Follow


  • Von der Leyen blamed “a very large exposure to the economic effects of Russia ’s full-scale war of aggression on Ukraine, the wars in Gaza and Sudan, and the Houthi attacks in the Red Sea,” and said it was “imperative to make sure that a first significant contribution” would get to Egypt by the end of 2024.

    To do so, the commission would employ a seldom-used part of the EU treaties, Article 213, which stipulates that the 27 member countries must endorse the funds — but not the parliament, the bloc’s only democratically elected institution.

    Not even when COVID-19 spread in 2020 and the EU bailed out governments from the Balkans to the Middle East was this path taken. Nor is it used to keep Ukraine’s war-shattered economy afloat, although Kyiv did benefit from it a decade ago, when Russia annexed Crimea and hiked natural gas prices.

    Apart from removing the need for parliamentary oversight, the urgent funding procedure also side-steps a requirement for an impact assessment on the effects of the assistance.

    Von der Leyen said the new parliament that will be formed after the EU elections would be “fully involved” for the remaining $4.3 billion of MFAs to Egypt, to be disbursed when Cairo agrees to implement “more comprehensive” reforms.

    The deal also includes a $1.9 billion investment plan and $647 million in loans, including at least $217 million that will go to Egypt for “migration management.”

    The fast-track money would inject 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.

    Usually, MFAs are meant for governments with dire economic woes and to encourage them to introduce reforms. Yet the commission acknowledges that Egypt is “sluggish” on policy revision and already has a “backlog of domestic reforms” to address.

    Migration is a key factor driving the EU-Egypt deal. As in previous years, it will be an election issue in the EU and mainstream parties want to keep arrivals down to deprive the far-right of campaign fuel.

    The deal in Cairo came just weeks after a pact was sealed with Mauritania involving money to help the country — a major transit hub for people moving through Africa toward Europe — beef up border security.

    A more substantial agreement was clinched with Tunisia last July, expanding on a model the bloc developed with Turkey in 2015 to stop migrants reaching Europe.

    While the Egyptian coast has not been a key launching pad for human traffickers sending overcrowded boats across the Mediterranean Sea to Europe, Egypt faces migratory pressures from the region, with the added looming threat that the Israel-Hamas war could spill across its borders.

    The commission, asked by the AP what conditions Egypt should respect to receive urgent funding, said that “relevant and feasible reform priorities would need (to) be selected taking into account the corresponding time horizon.”

    The commission’s website says macro-financial assistance must be “exceptional in nature” and that “a pre-condition for granting MFA is the respect of human rights and effective democratic mechanisms.”

    Amnesty International has implored the EU to put rights abuses at the center of relations with Egypt — and the commission concedes that “human rights challenges in Egypt remain significant.”

    Still, the EU’s executive branch maintains that “the political leadership in Egypt has taken several steps putting greater emphasis on the importance of the respect for human rights” in recent years.

    Earlier this month, Egypt floated its currency and announced a deal with the International Monetary Fund to increase its bailout loan from $3 billion to $8 billion, moving to shore up an economy hit by a staggering shortage of foreign currency and soaring inflation.

    Cairo’s coffers will also be replenished with $35 billion from a massive project involving an Emirati consortium to jointly develop the Mediterranean city of Ras el-Hekma.

    Since coming to power in 2013, Egyptian President Abdel Fattah el-Sissi has relied heavily on Gulf Arab states, from where an estimated more than $100 billion entered Egypt via Central Bank deposits, fuel aid and other support.

    Share and Follow
You May Also Like
Hollywood Walk of Fame class of 2026: Miley Cyrus, Shaq and more honored

Celebrities like Miley Cyrus and Shaq to receive stars on the Hollywood Walk of Fame in 2026

The Hollywood Chamber of Commerce revealed the 2026 class, including 35 famous…
Mother Nature steals the show as lightning sets off Florida fireworks display

Mother Nature steals the show as lightning sets off Florida fireworks display

NEWYou can now listen to Fox News articles! Independence Day spirits were…
Tropical Storm Chantal makes landfall over South Carolina with 50 mph winds

Tropical Storm Chantal arrives in South Carolina with winds of 50 mph

Tropical Storm Chantal made landfall at about 4 a.m. on Sunday near…
Bodies of all 7 missing found at a California fireworks warehouse that exploded

7 missing individuals located at California fireworks warehouse explosion site

ESPARTO, Calif. (AP) Authorities in Northern California have found the bodies of…
Heather Graham flaunts body in several bikinis during Italy vacation

Heather Graham shows off swimsuits in Italy trip

There is no one else who is soaking up the sun more…
Texas flood victims irate as officials blame National Weather Service

Texan flood victims are angry because authorities are pointing fingers at the National Weather Service.

In Central Texas, victims of the recent flash floods are expressing frustration…
Ozzy Osbourne joined by Metallica, Steven Tyler at final Black Sabbath show

Metallica, Steven Tyler to Perform with Ozzy Osbourne at Last Black Sabbath Concert

A legendary farewell. Black Sabbath reunited for Ozzy Osbourne’s final show with…
World War III will start with Xi and Putin invasions, warns NATO chief

NATO Chief Warns of Potential Invasions by Xi and Putin Leading to World War III

NATO chief Mark Rutte has chillingly warned that World War III will…