The macro-financial assistance (MFA) for Egypt was approved by the International Trade Committee by 28 votes in favour, seven against and five abstentions. The MFA for Jordan was passed by 35 votes in favour, two against and three abstentions.
Given Egypt’s critical economic and financial situation and its role as an important stabilising presence amid geopolitical tensions in an increasingly volatile region, the Commission proposed on 15 March 2024 to support the country with macro-financial assistance of up to €5 billion in loans. These break down into a short-term loan of up to €1 billion – already disbursed at the end of 2024 – and another, regular, operation of up to €4 billion to be disbursed in three instalments. The International Trade committee has just backed the latter.
For Jordan this is the fourth MFA operation since 2013. It should help cover the country’s residual financing needs, support its structural reforms and shore up its fiscal consolidation efforts. In January, the Commission announced an additional financial package to help Jordan face financial and other challenges.
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Rapporteur Celine Imart (EPP, France), said: “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. By endorsing this EU loan for Jordan, the Committee is helping to build our new partnership with the country, one that has recently been announced at the highest level. I am very pleased by this result.
Next steps
Both reports will be put to a vote in Parliament’s April 2025 plenary session. Before the financial assistance can be disbursed, it will have to be adopted by both Parliament and Council.
Background
These loans are part of financial support packages concluded with EU partner countries struggling with financial, economic, societal challenges, to help with structural political and economic reforms.
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