During the meeting, policies supporting the macroeconomy and empowering the private sector were discussed within the framework of the second phase of the MFA mechanism.
Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, met with Celine Emmert, Member of the European Parliament and Rapporteur of the second tranche of the macro-financial support package at the European Parliament’s International Trade Committee, to discuss the partnership files between Egypt and the European Union, especially at the level of the second phase of the macroeconomic support mechanism and budget deficit support, and enhancing ways of cooperation with the European Union to finance renewable energy programs.
At the beginning of the meeting, the Minister of Planning, Economic Development and International Cooperation welcomed the European Parliament Member, explaining that last year was a turning point in Egyptian-European cooperation, as it witnessed many developments, most notably the holding of the Egyptian-European summit, the issuance of the joint declaration to raise the level of partnership between the two sides, the approval of a financial package worth 7.4 billion euros, and obtaining the first tranche of the macroeconomic support mechanism and budget support worth one billion euros.
During the meeting, Al-Mashat reviewed the structural reforms implemented by the government over the past year, which contributed to enhancing macroeconomic stability, supporting resilience amid regional and international challenges, enhancing business confidence in the Egyptian economy, and allowing the private sector to lead development efforts. Discussions also focused on the second phase of the macroeconomic support mechanism and supporting the budget deficit by 4 billion euros through a set of policies that support the macroeconomics, stimulate private sector participation, and encourage green investments.
She also pointed to the positive developments in the GDP level in the first quarter of the current fiscal year, which reached 3.5% compared to 2.65% in the corresponding quarter, explaining that the measures taken by the government throughout the year and the implementation of a clear economic and structural reform program contributed to enhancing growth and restoring it in many sectors, most notably manufacturing industries, transportation and storage, communications and information technology.
Al-Mashat stressed that cooperation between Egypt and the European Union is an important element in the state’s efforts to achieve sustainable development and enhance regional stability, explaining that this cooperation strengthens cultural and economic ties and contributes to creating a better future for citizens, which makes partnership with the European Union a strategic priority for Egypt.
She also discussed the most prominent areas of cooperation with current programs that are funded through blended financing to support various sectors, including transportation, water, agriculture, small and medium enterprises, renewable energy, social protection, governance, civil society and capacity building, explaining that the framework of the comprehensive strategic partnership between Egypt and the European Union defines the strategic priorities and objectives to guide cooperation efforts between the two countries, adding that this partnership is in line with Egypt's national priorities, while addressing emerging needs and enhancing a cohesive and future-oriented cooperation framework.
Al-Mashat touched on the European financial package within the framework of the comprehensive strategic partnership between Egypt and the European Union, which is distributed according to 6 common priorities, namely strengthening political relations, enhancing economic stability, promoting investment and trade, enhancing migration and mobility frameworks, strengthening security, and enhancing human-centered initiatives such as skills development and education.
She also referred to the investment guarantees under the European Fund for Sustainable Development Plus (EFSD+), worth 1.8 billion euros, which are part of the financial package worth 7.4 billion euros, adding that these guarantees will positively reflect on increasing investment rates in Egypt, especially in priority sectors and common interest between the two sides, especially renewable energy.
She stated that the Ministry of Planning, Economic Development and International Cooperation is working to maximize the return on investment guarantees and inform national entities and the private sector on how to benefit from them in order to set priorities.
