European Parliament Approves Financial Aid Packages for Egypt and Jordan
MEPs endorse €5 billion macro-financial assistance for Egypt and continued support for Jordan amid regional challenges.
The European Parliament has officially adopted a macro-financial assistance (MFA) package aimed at providing crucial financial support to Egypt and Jordan.
The vote saw 452 Members of the European Parliament (MEPs) in favor of the assistance for Egypt, 182 against, and 40 abstentions.
For Jordan, the MFA was approved by a wider margin of 571 votes in favor, 59 against, and 46 abstentions.
Egypt is currently facing significant economic and financial difficulties, prompting the European Commission to propose a support package for the nation on 15 March 2024. This assistance comprises loans worth up to €5 billion, which are structured into a short-term loan of up to €1 billion, disbursed at the end of 2024, followed by a regular loan of up to €4 billion that will be provided in three installments.
The parliament's approval of this proposal underscores recognition of Egypt's role as a stabilizing force in an increasingly volatile geopolitical landscape.
For Jordan, this latest assistance package represents the fourth MFA initiative provided by the EU since 2013. The financial aid is aimed at addressing the country's residual financing needs, bolstering structural reforms, and facilitating fiscal consolidation efforts.
Additionally, the European Commission announced an additional financial package for Jordan in January 2025 to further assist in addressing ongoing financial challenges.
The approval of the financial assistance for Jordan is contingent upon the country adhering to effective democratic practices, including maintaining a multi-party parliamentary system, upholding the rule of law, and ensuring respect for human rights.
Celine Imart, the rapporteur for the MFA proposals, highlighted that the support granted to Jordan illustrates the Parliament's commitment to aiding partners in the region, with expectations of swift negotiations with member states regarding Egypt to expedite the process.
In terms of procedural next steps, the MFA package for Jordan requires formal approval from the Council before it can be implemented.
Meanwhile, discussions between the Council and Parliament on Egypt’s financial support are anticipated to commence shortly.
The macro-financial assistance for these countries forms part of broader financial support strategies established by the EU for partner nations facing economic and societal challenges, aimed at facilitating crucial political and economic reforms.
The vote saw 452 Members of the European Parliament (MEPs) in favor of the assistance for Egypt, 182 against, and 40 abstentions.
For Jordan, the MFA was approved by a wider margin of 571 votes in favor, 59 against, and 46 abstentions.
Egypt is currently facing significant economic and financial difficulties, prompting the European Commission to propose a support package for the nation on 15 March 2024. This assistance comprises loans worth up to €5 billion, which are structured into a short-term loan of up to €1 billion, disbursed at the end of 2024, followed by a regular loan of up to €4 billion that will be provided in three installments.
The parliament's approval of this proposal underscores recognition of Egypt's role as a stabilizing force in an increasingly volatile geopolitical landscape.
For Jordan, this latest assistance package represents the fourth MFA initiative provided by the EU since 2013. The financial aid is aimed at addressing the country's residual financing needs, bolstering structural reforms, and facilitating fiscal consolidation efforts.
Additionally, the European Commission announced an additional financial package for Jordan in January 2025 to further assist in addressing ongoing financial challenges.
The approval of the financial assistance for Jordan is contingent upon the country adhering to effective democratic practices, including maintaining a multi-party parliamentary system, upholding the rule of law, and ensuring respect for human rights.
Celine Imart, the rapporteur for the MFA proposals, highlighted that the support granted to Jordan illustrates the Parliament's commitment to aiding partners in the region, with expectations of swift negotiations with member states regarding Egypt to expedite the process.
In terms of procedural next steps, the MFA package for Jordan requires formal approval from the Council before it can be implemented.
Meanwhile, discussions between the Council and Parliament on Egypt’s financial support are anticipated to commence shortly.
The macro-financial assistance for these countries forms part of broader financial support strategies established by the EU for partner nations facing economic and societal challenges, aimed at facilitating crucial political and economic reforms.
