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EU-Egypt: EU Commissioner Ferrero-Waldner presents €558m assistance package

Summary: EU-Egypt: EU Commissioner Ferrero-Waldner presents €558m assistance package (26 February 2007: Brussels)

FR - DE

Commissioner for External Relations and the European Neighbourhood Policy, Benita Ferrero-Waldner, is presenting today in Cairo the assistance package that the Commission is proposing for Egypt under the European Neighbourhood Policy (ENP) over the next four years. The focus of the package is to support the reform process and the implementation of the EU-Egypt ENP Action Plan which will be adopted during the EU-Egypt Association Council meeting that will take place in Brussels on 6 March. The Action Plan sets out the priorities for co-operation in a wide range of sectors jointly agreed between the EU and Egypt. These are based on Egypt's own reform agenda in the economic, social and political areas. This €558 million package, which includes €58 million in interest rates subsidies that could attract in addition an estimated amount of €250-300 million in loans, announced during the Commissioner's visit to the country, demonstrates the EU's commitment to support Egypt in its national priorities and reforms. Egypt is one of the main beneficiaries of EU support in the region and the EU is the second largest donor to Egypt.

Commissioner Ferrero-Waldner emphasised: "I am glad that we have concluded negotiations with Egypt on a European Neighbourhood Action Plan. This will allow us to open the next chapter in our relationship, deepening our partnership in a number of key fields of interest to us both. With the financial package I am proposing, and the many advantages available under the Neighbourhood Policy, we are offering very significant new opportunities to Egypt, and supporting Egypt's own reform programme."

The Commission assistance to Egypt from 2007 to 2010 will focus on the following areas:

• Support for the implementation of the Action Plan: supporting reform processes in Egypt through targeted assistance in areas such as trade, customs, agriculture, transport, energy and science, including co-operation in legal migration, border management and visa facilitation.

• Sustainable development and management of human and natural resources: supporting reforms in the education and health sectors, which are crucial for the sustainable development of the country. In order to attract investments in key sectors, such as energy, transport and environment, €58 million will be set aside to subsidise loans, in particular from the European Investment Bank, which could attract an estimated € 250-300 million in loans.

• Reforms in the areas of democracy, human rights and justice: supporting Egypt's own political reform agenda is a key feature of this new aid package.
In addition to this bilateral financial package, the European Commission has proposed many other new opportunities under the ENP which will be available to Egypt:


• Neighbourhood Investment Fund, which will allow access to considerably increased funds for Egyptian industry and infrastructure by providing support to lending from international financial organisations.

• Governance Facility for those countries moving ahead with the implementation of agreed Action Plan reforms.

• People to people exchange and reinforced co-operation on education such as participation in the Erasmus Mundus programme and its scholarships and the Tempus programme for co-operation on higher education,

• Scientific and technological co-operation. Egypt will participate in the EU's Seven Framework Programme for Research and Development (RTD).

• Cross-border co-operation programme which will aim at bringing border regions in EU Member States and in the partner countries together and fostering their co-operation.

• Participation in Community programmes and agencies. Possibilities of enhanced co-operation with European agencies, such as the European Environment Agency and the European Food and Safety Agency, will be examined
Background

The European Neighbourhood Policy aims to intensify relations and promote progressive integration between the European Union and its neighbours. The ENP offers economic and social benefits for the countries that border the EU, through co-operation in a range of areas from strengthening democracy, promoting rule of law, and upholding human rights, to trade liberalisation, energy, and transport development. The EU and its neighbours mutually agree on Action Plans that are very concrete and helpful tools to realize the goals of the ENP.

The Financial instrument established to channel the ENP assistance is the European Neighbourhood and Partnership Instrument that as from 2007 has replaced the former instrument, MEDA. The MEDA aid to Egypt from 1996 to 2006 amounted €1.1 billion. The funds allocated to Egypt for 2007-2010 means an increase compared to the previous period.

For more information on the EU's relations with Egypt and on the ENP at:
http://ec.europa.eu/comm/external_relations/egypt/intro/index.htm

http://ec.europa.eu/world/enp/index_en.htm

  • Ref: EC07-044EN
  • EU source: European Commission
  • UN forum: 
  • Date: 26/2/2007


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See also
 

European Union Member States