The European Parliament approved €500 million in loans for Jordan and €4 billion for Egypt. These measures aim to support economic stability and reforms in both countries. The proposals will be voted on in April 2025 and require final approval from both Parliament and the Council before funds can be released.
The European Parliament’s International Trade Committee has approved new financial assistance proposals for Egypt and Jordan, amounting to €500 million and €4 billion, respectively. The macro-financial assistance (MFA) for Egypt received 28 votes in favor, while the MFA for Jordan garnered 35 votes. These funds aim to provide crucial economic support amid ongoing regional instabilities.
The European Commission proposed these loans on March 15, 2024, for Egypt, responding to its significant economic challenges and its role as a stabilizing force in the region. The assistance includes an immediate short-term loan of up to €1 billion, with an additional €4 billion distributed in three installments.
For Jordan, this represents the fourth MFA operation since 2013, facilitating coverage for residual financing needs while also supporting necessary structural reforms and fiscal consolidation efforts. Earlier this year, the European Commission initiated an extra financial package to further assist Jordan in addressing ongoing financial challenges.
Celine Imart, rapporteur and member of the European People’s Party from France, noted, “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… I am very pleased by this result.”
The next steps involve a vote in the Parliament’s plenary session scheduled for April 2025. The proposed financial assistance must receive approval from both Parliament and the Council before disbursement.
The European Parliament’s approval of financial assistance packages for Egypt and Jordan underscores the EU’s commitment to supporting stability and reform in the region. The approved loans aim to bolster economic conditions in both countries amid pressing challenges. The ongoing collaboration reaffirms the importance of these partnerships to the EU’s broader geopolitical strategy.
Original Source: europeansting.com
