Saturday 21 Dec
Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, announced today, Friday, the European Commission’s approval to disburse financing to Egypt worth one billion euros, within the Macroeconomic and Budget Support Mechanism (MFA). This constitutes the first phase of a five-billion-euro financing package that will be available to Egypt until 2027.
She clarified that this funding is part of a package that was signed last June in the presence of President Abdel Fattah El-Sisi. Since the signing of the agreement, the Ministry of Planning and Economic Development and International Cooperation, in light of its role in strengthening economic relations with the European Union, has been working with all partners to implement what was agreed upon within the financial package, to implement a mechanism to support the macroeconomy and support the budget, 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
authorities. Furthermore, the ministry regularly hosts delegations from the
European Union to closely monitor the progress of structural reforms
implemented under the national reform program. This program focuses on three
core pillars: achieving macroeconomic stability and resilience, fostering competitiveness
and business-friendly environment, and accelerating the green transition.
Over the past six months, in coordination with relevant authorities including the Central Bank, Ministries of Finance, Social Solidarity, Manpower, Investment and Foreign Trade, Electricity and Renewable Energy, the Competition Authority, and the Cabinet's Information Support and Decision Making Center, the government has undertaken a comprehensive program of structural reforms. This multi-pronged approach focuses on three key pillars. These reforms include: the electronic calculation of payroll taxes, activation of the unified public finance law to set an annual ceiling for government debt, and strengthening sustainable transformation through expanding social safety nets.
A presidential decree was issued
directing all government agencies to submit a preliminary draft of tax
exemptions that should be canceled for state-owned companies, and the
establishment of a unified database managed by a unit for the inventory and
follow-up of state-owned companies, which includes ownership details of all
state-owned companies.
In addition, the reforms included
the preparation of a plan for a public electronic procurement system in line
with the current public procurement law. The government approved the revised
sustainable energy strategy by September 2024, and regulations for issuing
energy certificates were issued to support the framework for private sector
companies.
The Minister added that the
European Commission's approval comes after the House of Representatives
approved a memorandum of understanding on a mechanism to support the
macroeconomy and budget between Egypt and the European Union.
She emphasized that the Egypt-European Union summit marks significant turning point in their relationship, culminating in the elevation of their partnership to a strategic level. Under this announcement, an agreement was reached on a financial package worth 7.4 billion euros to boost European investments in Egypt, support the Egyptian economy, and expand the scope of cooperation within the framework of national priorities; strengthening economic stability to ensure a stable and attractive investment climate, encouraging investment and trade to contribute to strengthening bilateral economic ties, developing migration 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.
