(3 Minutes Read) (Global)
Egypt has for years relied on cash handouts, often from wealthy Gulf Arab states, as concerns mount that economic pressure and regional conflicts could drive more migrants from the region to Europe’s shores
The European Union intends to fast-track some of its aid money to Egypt using an urgent funding procedure that bypasses parliamentary oversight and other safeguards, according to the president of the bloc’s executive branch.
Egypt has for years relied on cash handouts, often from wealthy Gulf Arab states, as concerns mount that economic pressure and regional conflicts could drive more migrants from the region to Europe’s shores.
The 1 billion euros (USD 1.1 billion) intended is part of a larger package of 7.4 billion euros ( USD 8 billion) in financial assistance to Egypt that the EU announced on March 17. The package includes three years’ worth of grants and favorable loans. Most of the funds — 5 billion euros (USDS 5.4 billion) — are known as macro-financial assistance, or MFA, and will be paid directly to Egypt’s Central Bank.
It’s rare for the EU to sidestep safeguards, but European Parliament elections are due June 6-9 — a timeline that if the checks were implemented, would slow the delivery of that money.
European Commission President Ursula von der Leyen announced plans for “an urgent MFA operation for up to 1 billion euros” for Egypt, noting in a letter to EU Parliament President Roberta Metsola the country’s rapidly deteriorating economic and fiscal situation.
The doles have stirred murmurs in certain quarters. Detractors of this largesse say that not even when COVID-19 spread in 2020, the EU bailed out governments. Nor is it used to keep Ukraine’s war-shattered economy afloat. 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.
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The deal also includes a 1.8 billion Euro (USD1.9 billion) investment plan and 600 million euros (USD 647 million) in loans, including at least 200 million euros (USD 217 million) that will go to Egypt for migration management.
Analysts say that 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.
