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Egypt-EU Investment Conference Addresses Economic Crisis and Human Rights Concerns

2024-07-03 03:59:36.391000

Egypt and the European Union (EU) have launched a two-day investment conference in Cairo to address Egypt's severe economic issues. The conference aims to finalize investment deals worth 40 billion euros ($42.8 billion) with European companies and bilateral cooperation agreements. As part of the conference, the EU has pledged a 7.4 billion-euro ($8 billion) aid package to Egypt, with 5 billion euros ($5.4 billion) designated as macro-financial assistance to help address the country's economic crisis [137291f5].

President Abdel Fattah el-Sissi emphasized the importance of the conference, noting that it sends a message of confidence and support from the EU for the Egyptian economy and the economic reform measures implemented over the past 10 years. The EU and Egypt will sign a memorandum of understanding for short-term macro-financial assistance of up to 1 billion euros ($1.07 billion) to support Egypt's economic reform program. Additionally, other investment deals worth 40 billion euros ($42.8 billion) are scheduled to be signed with European companies, along with bilateral cooperation agreements with the EU [137291f5].

Egypt has been implementing a comprehensive reform program since 2016, which includes measures such as floating the local currency, cutting state subsidies, reducing public investment, and promoting the private sector as the engine of growth. These measures aim to combat inflation, attract foreign investment, and meet the demands of the International Monetary Fund (IMF) to increase its bailout loan from $3 billion to $8 billion. However, these economic reforms have also caused economic hardship for Egyptians, with nearly 30% of the population living in poverty [3c93fe77].

The EU's financial assistance to Egypt has drawn criticism from human rights groups due to Egypt's poor human rights record. These groups have called for concrete human rights progress and reforms as a precondition for financial assistance. The EU announcement of the aid package did not mention human rights reforms [137291f5].

The investment conference in Cairo aims to strengthen bilateral cooperation between Egypt and the EU and attract foreign investment to support Egypt's economic recovery. The conference will also address human rights concerns and the need for progress in this area. The EU's financial assistance to Egypt is seen as an opportunity to leverage support for human rights reforms in the country [137291f5].

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