The European Parliament’s International Trade Committee approved €500 million for Jordan and €4 billion for Egypt in macro-financial assistance. The support aims to bolster economic stability in these nations facing significant financial challenges. Further steps will involve voting in the April 2025 plenary session, with necessary endorsements from both the Parliament and the Council.
The International Trade Committee of the European Parliament has approved proposals to provide macro-financial assistance to Egypt and Jordan, amounting to €500 million and €4 billion, respectively. The approval of €4 billion in loans for Egypt received substantial support, with 28 votes in favor against seven opposed and five abstentions. Meanwhile, Jordan’s package saw even broader approval, with a vote tally of 35 in favor, two against, and three abstentions.
Due to Egypt’s prevailing economic challenges and its significant role in regional stability amid ongoing geopolitical tensions, the European Commission proposed a support package on March 15, 2024. This package comprises up to €5 billion in loans, with a short-term loan of €1 billion already disbursed at the close of 2024 and a further €4 billion split into three installments, which the committee has now endorsed.
For Jordan, this marks the fourth instance of macro-financial assistance since 2013. The support aims to address the country’s residual financing needs while reinforcing its structural reforms and advancing fiscal consolidation efforts. Earlier this year, an additional financial package was announced to assist Jordan in tackling its financial challenges.
Rapporteur Celine Imart (EPP, France) remarked, “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.”
Following this development, both reports will be presented for a vote in the Parliament’s plenary session scheduled for April 2025. Future disbursement of the financial assistance awaits adoption by both the Parliament and the Council. The provision of these loans forms part of broader financial support measures for EU partner nations grappling with economic and societal challenges, aimed at facilitating essential political and economic reforms.
The European Parliament’s International Trade Committee has endorsed significant financial assistance packages for Egypt and Jordan, aiming to bolster economic stability and support political reforms in these nations. The loans reflect a commitment to regional partnerships, addressing pressing financial challenges in both countries. Future steps hinge on the approval of these measures in upcoming parliamentary sessions, signaling ongoing EU engagement in the region’s stability and development.
Original Source: europeansting.com
