European Commission President Ursula von der Leyen on Saturday announced 42 billion euros ($45 billion) of investment in Egypt by European companies and cash contributions from Brussels to support the country’s struggling economy.
Speaking at the Egypt-EU Investment Conference in Cairo, von der Leyen said the two companies had signed more than 20 new agreements and memoranda of understanding (MOUs) with the Middle Eastern country.
The European Union has pledged 7.4 billion euros in financial aid to Egypt for economic reforms, and on Saturday the two sides signed an agreement for the first 1 billion euros.
European officials say they want to help Egypt strengthen its resilience by boosting investment and the private sector after it has been hit by repeated economic shocks from the coronavirus pandemic and high inflation.
A strong Egypt is important to the EU
Writing about the investment on her Twitter account, von der Leyen said EU countries and Egypt wanted to build a partnership based on a “framework of trust and certainty.”
“Egypt’s stability is important for the region. In a turbulent world, we have built our relations on the foundation of our historical ties,” she added.
The EU chief said the two countries would continue to cooperate in areas including trade, energy, water, migration, skills and mobility.
Addressing the conference, von der Leyen told delegates that the investment “continues to align with Egypt’s reform plan” and will “foster a stronger business environment, attract more investments and create more quality jobs.”
Egyptian President Abdel Fattah el-Sisi said in his speech that the meeting “marks the first implementation step towards improving relations between the two countries and reflects the commitment of Egypt and the EU to go beyond the phase of pledges to the phase of implementation.”[the[commitmentofEgyptandthe EUtogobeyondthephaseofpledgestothephaseofimplementation”
He said that amid successive international and regional crises, “Egypt has proven itself to be a reliable partner in facing common challenges in a way that achieves security and stability.”
Egypt wins EU, regional and international support
Egypt has received billions of dollars in foreign funding and donations pledged this year from the EU as well as the United Arab Emirates, the International Monetary Fund and the World Bank.
The cash injection eased a long-running currency crisis at a time when Egypt was dealing with the impact of war in neighboring Gaza and on its southern border in Sudan.
Ms von der Leyen was accompanied by two other EU commissioners, Neighbourhood Commissioner Oliver Varley and Economic Affairs Commissioner Vladis Dombrovskis.
Dombrovskis signed a memorandum of understanding for short-term financial assistance of up to 1 billion euros to support Egypt’s economic reform program, as part of a larger 7.4 billion euro aid package announced by Brussels in March.
According to the European Commission, the money will be invested in areas such as clean energy, manufacturing and food security.
Human rights groups seek funding tied to rule of law demands
The deal has been criticized by human rights groups who say the Egyptian government does not respect the rule of law.
Thousands of people, including journalists, critics, opposition politicians, peaceful protesters and human rights defenders, have been detained in recent years.
“This contract is one of the most expensive funding agreements the EU has ever signed with a non-EU country,” Eve Geddie, executive director of Amnesty International’s European arm, said on Wednesday. “By failing to ensure that Egyptian authorities adopt clear standards on human rights and the rule of law as a precondition for financial assistance, the EU has broken its own rules.”
In a letter earlier this month, Human Rights Watch and Egyptian, regional and international human rights groups urged Brussels to ensure that the cash “ensures concrete, measurable, structural and time-bound human rights progress and reforms in the country.”
mm/kb (AP, DPA, Reuters)
