Urgent .. European Commission to disburse one billion euros to Egypt
Within the mechanism of supporting the macroeconomic and budget support
Photo by Hossam Mounir Hossam Mounir Send an email 12/20/2024
Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, announced the European Commission’s approval to disburse funding to Egypt worth one billion euros, within the Macroeconomic and Budget Support Mechanism (MFA), which is the first phase of funding worth 5 billion euros that will be made available until 2027.
Al-Mashat explained that the funding is part of the package that was signed last June, in front of President Abdel Fattah El-Sisi, President of the Republic; and since the signing of the agreement, the Ministry of Planning, Economic Development and International Cooperation, in light of its role assigned to strengthen economic relations with the European Union, has worked with all partners to implement what was agreed upon within the framework of the financial package, to implement the mechanism to support the macroeconomic and budget support, in addition to providing technical support and capacity building.
She noted that the Ministry has been holding intensive meetings with various relevant parties and national entities, and hosting repeated missions from the European Union to review the matrix of structural reforms implemented within the framework of the National Structural Reforms Program, which aims to achieve three main pillars: achieving macroeconomic stability and resilience, improving competitiveness and the business environment, and stimulating the green transformation.
Over the course of 6 months, and in coordination with the relevant authorities (the Central Bank, the Ministries of Finance, Social Solidarity, Labor, Investment and Foreign Trade, Electricity and Renewable Energy, as well as the Competition Protection and Anti-Monopoly Authority, and the Information Support and Decision-Making Center of the Cabinet), the government implemented several reforms within the framework of the three pillars of the structural reform program, including calculating the salary tax electronically, activating the Unified Public Finance Law to set an annual ceiling for public government debt, and enhancing sustainable transformation through expanding social safety nets. The Cabinet’s decision was also issued to all government agencies to send all tax exemptions granted to state-owned companies to prepare a preliminary draft of the exemptions that should be cancelled, as well as establishing a unified database managed by the State-Owned Companies Inventory and Follow-up Unit that includes ownership details for all state-owned companies.
The reforms also included preparing a plan for the public e-procurement system in line with the current public procurement law. At the green transformation level, the government adopted the amended strategy for sustainable energy by September 2024, and regulations for issuing energy certificates of origin were issued to support the framework for private sector companies.
The Minister of Planning, Economic Development and International Cooperation added that the European Commission's approval comes after the House of Representatives' approval of the Memorandum of Understanding on the Macroeconomic and Budget Support Mechanism between Egypt and the European Union.
She stressed that the Egyptian-European summit is a turning point in the relationship between the two sides, as it witnessed the announcement of upgrading the level of relations to a strategic partnership. According to this announcement, a financial package worth 7.4 billion euros was agreed upon to enhance European investments in Egypt, support the Egyptian economy, and expand the scope of cooperation within the framework of national priorities; enhancing economic stability to ensure a stable and attractive economic environment for investment, encouraging investment and trade in a way that contributes to strengthening bilateral economic relations, developing immigration and mobility frameworks to ensure the exchange of expertise and human cadres in an organized and mutually beneficial manner, and expanding efforts to develop human capital.
