Egypt and EU Launch Investment Conference to Aid in Battling Inflation and Currency Crisis
- Egypt and the European Union have initiated an investment conference to address inflation and currency issues.
- The strategic partnership agreement includes a significant aid package aimed at supporting Egypt financially.
- The collaboration is geared towards improving Egypt's economic stability and tackling financial challenges.
In Cairo, Egypt and the European Union have commenced a two-day investment conference aimed at advancing their strategic partnership agreement, which includes an 8 billion-dollar aid package for Egypt. The aid package, spanning over three years, consists of grants and loans, with a significant portion of 5.4 billion dollars designated as macro-financial assistance to bolster Egypt's economy amidst challenges such as a shortage of foreign currency and high inflation. During the conference, President Abdel Fattah el-Sissi expressed gratitude for the EU's support, highlighting the confidence shown in Egypt's economic reform efforts over the past decade. The EU, represented by Executive Vice-President Valdis Dombrovskis, is set to sign a memorandum of understanding for short-term macro-financial assistance of over 1 billion dollars to aid Egypt's economic reform program. The reform measures have included floating the local currency, reducing state subsidies, and empowering the private sector for growth. However, the EU's aid package has faced criticism from rights groups concerning Egypt's human rights record. Concerns have been raised that economic pressures and conflicts in neighboring countries could lead to increased migration to Europe. Rights organizations, including Human Rights Watch and Amnesty International, have urged the EU to ensure that the bailout package promotes tangible human rights progress and reforms in Egypt, given the country's history of cracking down on dissent. The Egyptian government's recent actions, such as currency devaluation and subsidy cuts, have exacerbated the challenges faced by the population, with nearly 30% of Egyptians living in poverty according to official statistics. As Egypt navigates economic difficulties and strives for reform, the partnership with the EU is seen as a crucial step towards addressing financial strains and fostering sustainable growth while also prompting discussions on human rights improvements.