The European Parliament’s International Trade Committee has approved financial loans of €500 million for Jordan and €4 billion for Egypt to support their economies. These proposals aim to bolster structural reforms and fiscal consolidation, with future votes set for April 2025 for final approval.
The International Trade Committee of the European Parliament has approved significant financial assistance for Egypt and Jordan, featuring loans of €500 million and €4 billion respectively. The proposal for Egypt received strong support, passing with 28 votes in favor, while Jordan’s proposal was approved with 35 votes in favor.
Egypt’s financial aid is designed to alleviate its severe economic concerns and to bolster its strategic role in a geopolitically sensitive area. The European Commission, on March 15, 2024, proposed macro-financial assistance totaling €5 billion, featuring a short-term loan of €1 billion disbursed in 2024 and a regular operation of €4 billion across three installments. The International Trade Committee has endorsed the latter portion.
For Jordan, this marks the fourth macro-financial assistance operation since 2013, aimed at addressing lingering financing needs and supporting structural reforms while enhancing fiscal consolidation efforts. In January, additional financial support was pledged by the Commission in response to Jordan’s ongoing challenges.
Rapporteur Celine Imart emphasized, “The International Trade Committee’s backing for this EU loan reflects this Parliament’s high regard for Egypt as a partner country. By helping Egypt, we are also looking after EU interests in an unstable region. By endorsing this EU loan for Jordan, the Committee is helping to build our new partnership…” This sentiment illustrates the importance of these proposals in fostering strategic relations.
The upcoming procedural steps include Parliament voting on both reports during its plenary session in April 2025. For the financial assistance to be effective, it must gain approval from both the Parliament and the Council. This financial assistance is part of broader support initiatives addressing financial, economic, and social challenges in collaboration with EU partner nations.
In conclusion, the European Parliament has taken significant steps to support Egypt and Jordan through proposed macro-financial assistance. These loans aim to stabilize the economies of both nations and elevate their partnerships with the EU. The process moving forward includes parliamentary votes and Council approval, highlighting the importance of collective efforts to address the financial difficulties faced by these countries.
Original Source: europeansting.com
