MEPs Approve Financial Support for Egypt and Jordan: Key Developments
The European Parliament’s International Trade Committee has approved €4 billion in loans for Egypt and €500 million for Jordan to support their economic stability and reforms. The proposals underline the EU’s commitment to help partner countries facing financial challenges. Both loans will be voted on in April 2025.
The European Parliament’s International Trade Committee has recently approved two significant financial assistance proposals for Egypt and Jordan. The committee has authorized loans amounting to €500 million for Jordan and €4 billion for Egypt. The macro-financial assistance (MFA) for Egypt received strong support with 28 votes in favor, while the assistance for Jordan was passed with 35 votes in favor.
The European Commission proposed up to €5 billion in loans for Egypt due to its challenging economic and financial climate, as well as its strategic role in a turbulent region. This financial support includes a short-term loan of up to €1 billion, which was disbursed at the end of 2024, followed by a further €4 billion to be distributed in three phases. The International Trade Committee has recently endorsed this proposal.
For Jordan, this marks the fourth instance of macro-financial assistance since 2013. The funding is intended to address the country’s remaining financial needs, aid in structural reforms, and bolster fiscal consolidation efforts. Earlier in January, the Commission introduced a supplementary financial aid package to assist Jordan in overcoming various challenges.
“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,” stated Rapporteur Celine Imart (EPP, France). Additionally, she expressed satisfaction with the support for Jordan, emphasizing the importance of strengthening partnerships with the country.
Both proposals will be presented for a vote in the European Parliament’s plenary session scheduled for April 2025. For the disbursement of financial assistance to take place, approval must be secured from both the Parliament and the Council.
The recent approval by the European Parliament’s International Trade Committee for financial assistance to Egypt and Jordan signifies a commitment to support these nations during challenging economic times. The €4 billion loan to Egypt is crucial for stabilizing its economy, while Jordan’s €500 million loan will assist in reform efforts. These steps underline the EU’s strategic interests in fostering stability within the region, paving the way for future partnerships.
Original Source: europeansting.com
