European Parliament Approves Financial Assistance for Egypt and Jordan

The European Parliament’s International Trade Committee approved loans for Egypt and Jordan totaling €4.5 billion to support their economic reforms and financial needs. The assistance aims to address urgent challenges faced by both countries amidst geopolitical tensions. The final approval will occur in the April 2025 plenary session.

On Thursday, the European Parliament’s International Trade Committee approved financial assistance proposals for Egypt and Jordan, which include loans amounting to €4 billion and €500 million respectively. The committee backed the macro-financial assistance (MFA) for Egypt with a majority of 28 votes in favor, while the MFA for Jordan received support from 35 votes, with only two votes against.

The European Commission proposed this assistance for Egypt on March 15, 2024, in light of its precarious economic conditions and its significant stabilizing role in a region fraught with geopolitical challenges. The proposed assistance consists of a €1 billion short-term loan already disbursed and a €4 billion loan to be allocated in three installments. The International Trade Committee has endorsed this latter assistance.

Jordan is set to receive its fourth MFA since 2013, which is aimed at covering remaining financial needs, supporting structural reforms, and facilitating fiscal consolidation efforts. This follows an additional financial package announced in January to assist Jordan in addressing its economic challenges.

Celine Imart, the rapporteur for the proposal, remarked that this loan reflects the European Parliament’s recognition of Egypt as a vital partner in the region. She stated, “By helping Egypt, we are also looking after EU interests in an unstable region.” Imart further noted that the loan for Jordan strengthens the newly reestablished partnership between the EU and Jordan.

Future parliament procedures require that the reports be approved in the April 2025 plenary session before the financial assistance can be released. These loans are an integral part of the broader financial support frameworks established by the EU for countries facing significant financial and societal hurdles, promoting necessary reforms.

The European Parliament’s approval of financial assistance for Egypt and Jordan demonstrates a commitment to supporting key partners in a region characterized by instability. The affirmation of these loans aims to bolster economic reforms while addressing the pressing financial needs of both nations. As further legislative processes unfold, the implementation of these assistance packages will be pivotal for stabilizing the economic circumstances in both countries.

Original Source: europeansting.com