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
Jacksonville travelers return home smoothly following July 4th

Jacksonville vacationers had a smooth journey back home after July 4th

JAX Airport smoothly handled a surge of travelers during the busiest Fourth…
Celebrities, corporations open wallets after deadly flood in Texas Hill Country

Celebrities, corporations open wallets after deadly flood in Texas Hill Country

NEWYou can now listen to Fox News articles! As authorities and volunteers…
Tucker Carlson interviews Iranian president amid MAGA rift over Iran-Israel conflict

Tucker Carlson talks to Iranian President amidst divided opinions on Iran-Israel tension from MAGA supporters

Former Fox News host Tucker Carlson said Saturday he would soon air…
Yankees' Jazz Chisholm out of Subway Series lineup with shoulder issue

Yankees’ Jazz Chisholm sidelined from Subway Series game due to shoulder problem

The struggling Yankees team, who had endured a six-game losing streak and…
Utah building explodes into the sky after vehicle crashes into business, causes fire

Utah building explodes into the sky after vehicle crashes into business, causes fire

NEWYou can now listen to Fox News articles! A building at a…
Collapsed gangway knocks out power at Fernandina Harbor Marina

Port Marina at Fernandina Harbor loses electricity due to fallen gangway.

The gangway collapsed Friday night during a fireworks show, plunging spectators into…
Biden's 'puppet masters' being forced to dish on his presidency

Those who influence Biden are now being required to share information about his time as president.

Republicans on Capitol Hill are set to question several of Joe Biden’s…
Texas flood survivors share harrowing stories, search continues for those still missing

Texas flood survivors share harrowing stories, search continues for those still missing

NEWYou can now listen to Fox News articles! As officials continue to…