2024/0071(COD) Macro-financial assistance to Egypt
Lead committee dossier:
Progress: Awaiting committee decision
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | INTA |
IMART Céline ( EPP)
|
MAVRIDES Costas ( S&D),
MARIANI Thierry ( PfE),
POLATO Daniele ( ECR),
CASSART Benoit ( Renew),
MARZÀ IBÁÑEZ Vicent ( Greens/EFA),
DELLA VALLE Danilo ( The Left)
|
| Former Responsible Committee | INTA | ||
| Committee Opinion | AFET |
STRIK Tineke ( Greens/EFA)
|
|
| Former Committee Opinion | AFET | ||
| Former Committee Opinion | BUDG | ||
| Committee for budgetary assessment | BUDG |
NEMEC Matjaž ( S&D)
|
Lead committee dossier:
Legal Basis:
RoP 58, TFEU 212
Legal Basis:
RoP 58, TFEU 212Events
2024/12/19
European Parliament - Committee draft report
Documents
2024/12/17
European Parliament - Amendments tabled in committee
Documents
2024/11/13
EP - Committee referral announced in Parliament, 1st reading
2024/10/24
EP - NEMEC Matjaž (S&D) appointed as rapporteur in BUDG
2024/10/14
EP - STRIK Tineke (Greens/EFA) appointed as rapporteur in AFET
2024/09/30
EP - IMART Céline (EPP) appointed as rapporteur in INTA
2024/05/30
IT_CHAMBER - Contribution
Documents
2024/03/15
European Commission - Legislative proposal
Details
PURPOSE: to provide macro-financial assistance (MFA) to the Arab Republic of Egypt.
PROPOSED ACT: Decision of the European Parliament and of the Council.
ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.
BACKGROUND: relations between the European Union and the Arab Republic of Egypt are developed within the framework of the EU-Egypt Association Agreement, in force since 2004. The EU and Egypt adopted the latest EU-Egypt Partnership Priorities (2021-2027) at the ninth EU-Egypt Association Council on 19 June 2022. The Partnership Priorities reconfirm the joint aim to address common challenges facing the EU and Egypt, promote joint interests and guarantee long-term stability and sustainable development on both sides of the Mediterranean.
The Strategic and Comprehensive Partnership will cover specific areas of cooperation outlined in the Joint Declaration, clustered across six pillars of intervention, namely: political relations; economic stability; investment and trade; migration; security and law enforcement cooperation; demography and human capital. The implementation of cooperation in these areas will unleash the full potential of the EU-Egypt relationship.
Underpinning the partnership will be a financial package consisting of short- and longer-term support for the necessary macro-fiscal and socio-economic reform agenda, as well as increased amounts available to support investments in Egypt and targeted support for the implementation of the different strategic priorities.
This financial package will be provided in a challenging economic situation where Egypt continues to have sizeable and unmet financing needs. In this context, the Egyptian authorities requested support through macro-financial assistance (‘MFA’) from the EU on 12 March 2024 after an International Monetary Fund (‘IMF’) staff level agreement on an augmented Extended Fund Facility of USD 8 billion was announced on 6 March 2024.
After showing some resilience during the pandemic, partly thanks to reforms in the context of successive IMF programmes since 2016, Egypt’s macro-fiscal situation has deteriorated noticeably over recent months.
CONTENT: against the backdrop of the deteriorating regional stability and Egypt’s important role in the region, the Commission is submitting to the European Parliament and the Council a proposal to provide a new MFA of up to EUR 4 billion to the benefit of Egypt, as part of an overall MFA package of up to EUR 5 billion in loans. The proposed MFA would help Egypt cover part of its overall external financing gap, which is estimated at around USD 17.7 billion in the context of the new IMF programme over the period of 2024-2027.
The disbursement would take place in three instalments, with the release of each instalment, including the first one, strictly linked to satisfactory progress with the implementation of both the IMF programme and in relation to a number of additional policy measures to be agreed between the Commission and the Egyptian authorities and listed in a Memorandum of Understanding (‘MoU’).
The MoU could, in principle, include reforms to promote the role of the private sector in the economy, monetary and exchange rate policy reforms, continued Public Finance Management reforms and social support mechanism enhancements.
It should be noted that provisions will be provided under the External Action Guarantee at a provisioning of 9%, which will be programmed under the NDICI-GE, for a total amount of EUR 360 million (budget line 14 02 01 70 “NDICI – Global Europe - Provisioning of the Common Provisioning Fund”).
Legislative proposal
Documents
2024/03/15
European Commission - Document attached to the procedure
Documents
2024/03/15
EC - Legislative proposal published
Details
PURPOSE: to provide macro-financial assistance (MFA) to the Arab Republic of Egypt.
PROPOSED ACT: Decision of the European Parliament and of the Council.
ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.
BACKGROUND: relations between the European Union and the Arab Republic of Egypt are developed within the framework of the EU-Egypt Association Agreement, in force since 2004. The EU and Egypt adopted the latest EU-Egypt Partnership Priorities (2021-2027) at the ninth EU-Egypt Association Council on 19 June 2022. The Partnership Priorities reconfirm the joint aim to address common challenges facing the EU and Egypt, promote joint interests and guarantee long-term stability and sustainable development on both sides of the Mediterranean.
The Strategic and Comprehensive Partnership will cover specific areas of cooperation outlined in the Joint Declaration, clustered across six pillars of intervention, namely: political relations; economic stability; investment and trade; migration; security and law enforcement cooperation; demography and human capital. The implementation of cooperation in these areas will unleash the full potential of the EU-Egypt relationship.
Underpinning the partnership will be a financial package consisting of short- and longer-term support for the necessary macro-fiscal and socio-economic reform agenda, as well as increased amounts available to support investments in Egypt and targeted support for the implementation of the different strategic priorities.
This financial package will be provided in a challenging economic situation where Egypt continues to have sizeable and unmet financing needs. In this context, the Egyptian authorities requested support through macro-financial assistance (‘MFA’) from the EU on 12 March 2024 after an International Monetary Fund (‘IMF’) staff level agreement on an augmented Extended Fund Facility of USD 8 billion was announced on 6 March 2024.
After showing some resilience during the pandemic, partly thanks to reforms in the context of successive IMF programmes since 2016, Egypt’s macro-fiscal situation has deteriorated noticeably over recent months.
CONTENT: against the backdrop of the deteriorating regional stability and Egypt’s important role in the region, the Commission is submitting to the European Parliament and the Council a proposal to provide a new MFA of up to EUR 4 billion to the benefit of Egypt, as part of an overall MFA package of up to EUR 5 billion in loans. The proposed MFA would help Egypt cover part of its overall external financing gap, which is estimated at around USD 17.7 billion in the context of the new IMF programme over the period of 2024-2027.
The disbursement would take place in three instalments, with the release of each instalment, including the first one, strictly linked to satisfactory progress with the implementation of both the IMF programme and in relation to a number of additional policy measures to be agreed between the Commission and the Egyptian authorities and listed in a Memorandum of Understanding (‘MoU’).
The MoU could, in principle, include reforms to promote the role of the private sector in the economy, monetary and exchange rate policy reforms, continued Public Finance Management reforms and social support mechanism enhancements.
It should be noted that provisions will be provided under the External Action Guarantee at a provisioning of 9%, which will be programmed under the NDICI-GE, for a total amount of EUR 360 million (budget line 14 02 01 70 “NDICI – Global Europe - Provisioning of the Common Provisioning Fund”).
Legislative proposal
Documents
Documents
- Committee draft report: PE765.300
- Amendments tabled in committee: PE766.925
- Contribution: COM(2024)0461
- Legislative proposal: COM(2024)0461
- Legislative proposal: Go to the pageEur-Lex
- Document attached to the procedure: Go to the pageEur-Lex
- Document attached to the procedure: SWD(2024)0461
- Legislative proposal published: COM(2024)0461
- Legislative proposal published: Go to the page Eur-Lex
- Amendments tabled in committee: PE766.925
- Committee draft report: PE765.300
- Legislative proposal: COM(2024)0461 Go to the pageEur-Lex
- Document attached to the procedure: Go to the pageEur-Lex SWD(2024)0461
- Contribution: COM(2024)0461
| Amendments | Dossier |
| 90 |
2024/0071(COD)
2024/12/17
AFET
90 amendments...
Amendment 100 #
Proposal for a decision Article 8 – paragraph 1 – point -a (new) (-a) assess concrete and credible steps towards respecting effective democratic mechanisms - including a multi-party parliamentary system - and the rule of law, and guarantees respect for human rights, with notable focus on legislative reforms improving the rights to freedom of expression, association and peaceful assembly, introducing a moratorium on death penalty, combating torture and enforced disappearances, improving the conditions of prisons ;
Amendment 101 #
Proposal for a decision Article 8 – paragraph 1 – point b (b) assess the economic situation and prospects of Egypt, as well as progress made in implementing the policy measures referred to in Article 3(1) and concrete actions outlined in the Annex of the Memorandum of Understanding;
Amendment 102 #
Proposal for a decision Article 8 – paragraph 1 – point b (b) assess the economic, social and judicial situation and prospects of Egypt, as well as progress made in implementing the policy measures referred to in Article 3(1);
Amendment 103 #
Proposal for a decision Article 8 – paragraph 1 – point b a (new) (b a) assess the measures Egypt has taken to stop illegal migration flows to Europe;
Amendment 104 #
Proposal for a decision Article 8 – paragraph 1 – point c b (new) (c b) outline the concrete and credible steps Egypt has taken towards respecting effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and toward guaranteeing respect for human and social rights and social justice.
Amendment 15 #
Proposal for a decision Recital 1 (1) Relations between the European Union and the Arab Republic of Egypt (‘Egypt’) are developed within the framework of the EU-Egypt Association Agreement, in force since 2004. The EU and Egypt adopted the latest EU-Egypt Partnership Priorities (2021-2027) at the ninth EU-Egypt Association Council on 19 June 2022. The Partnership Priorities reconfirm the joint aim to address common challenges facing the EU and Egypt, promote joint interests and guarantee long- term stability and sustainable development on both sides of the Mediterranean. The shared commitment to
Amendment 16 #
Proposal for a decision Recital 2 (2) The Partnership Priorities reflect the shared commitment of the EU and Egypt to reinforce cooperation in support of Egypt’s ‘Sustainable Development Strategy Vision 2030’ and the EU’s determination to act on renewed impetus to strengthen the partnership with its Southern Neighbourhood. Namely, in the European Council Conclusions of 10-11 December 20201 , the EU stated its strategic priority for a democratic, more stable, greener and more prosperous Southern Neighbourhood as a strategic priority. The EU Agenda for the Mediterranean and its Economic and Investment Plan for the Southern Neighbours set out in the EU Joint Communication on the Southern Neighbourhood of 9 February 2021 present the EU’s objectives to achieve long-term, sustainable socioeconomic recovery and resilience, to enhance the respect for fundamental freedoms and rule of law and to advance the twin green and digital transitions in the region.
Amendment 17 #
Proposal for a decision Recital 2 (2) The Partnership Priorities reflect the shared commitment of the EU and Egypt to reinforce cooperation in support of Egypt’s ‘Sustainable Development Strategy Vision 2030’ and the EU’s determination to act on renewed impetus to strengthen the partnership with its Southern Neighbourhood. Namely, in the European Council Conclusions of 10-11 December 20201 , the EU stated its strategic priority for a democratic, more stable,
Amendment 18 #
Proposal for a decision Recital 3 (3) In line with the Partnership Priorities, the EU and Egypt are committed to ensuring accountability, the rule of law, the full respect of human rights
Amendment 19 #
Proposal for a decision Recital 3 (3) In line with the Partnership Priorities, the EU and Egypt are committed to ensuring accountability, the rule of law, the full respect of human rights, fundamental freedoms, promoting democracy, gender equality and equal opportunities as constitutional rights of all their citizens. The EU and Egypt are also committed to tackling immigration and Islamist fundamentalism. These commitments contribute to the advancement of the partnership and to Egypt’s sustainable development and stability. The increased and constructive engagement between the EU and Egypt in the last period has opened the path to more meaningful dialogue on human rights related issues. The subcommittee on Political Matters, Human Rights and Democracy, International and Regional issues of December 2022 and the Association Committee of May 2023 provided the institutional platforms to exchange on an array of human rights issues, which the EU would like to continue and build on. The improvement of the human rights situation in Egypt will have a positive impact on EU-Egypt relations.
Amendment 20 #
Proposal for a decision Recital 3 (3) In line with the Partnership Priorities, the EU and Egypt are committed to ensuring accountability, the rule of law, the full respect of human and social rights, fundamental freedoms, promoting democracy, social justice, gender equality and equal opportunities as constitutional rights of all their citizens. These commitments contribute to the advancement of the partnership and to Egypt’s sustainable development and stability in alignment with the principles of social justice. The increased and constructive engagement between the EU and Egypt in the last period has opened the path to more meaningful dialogue on human rights related issues. The subcommittee on Political Matters, Human Rights and Democracy, International and Regional issues of December 2022 and the Association Committee of May 2023 provided the institutional platforms to exchange on an array of human rights issues, which the EU would like to continue and build on. The improvement of the human rights situation in Egypt will have a positive impact on EU-Egypt relations.
Amendment 21 #
Proposal for a decision Recital 3 (3) In line with the Partnership Priorities, the EU and Egypt are committed to ensuring accountability, the rule of law, the full respect of human rights, fundamental freedoms, combatting anti- Semitism and extremism, promoting democracy, gender equality and equal opportunities as constitutional rights of all their citizens. These commitments contribute to the advancement of the partnership and to Egypt’s sustainable development and stability. The increased and constructive engagement between the EU and Egypt in the last period has opened the path to more meaningful dialogue on human rights related issues. The subcommittee on Political Matters, Human Rights and Democracy, International and Regional issues of December 2022 and the Association Committee of May 2023 provided the institutional platforms to exchange on an array of human rights issues, which the EU would like to continue and build on. The improvement of the human rights situation in Egypt will have a positive impact on EU-Egypt relations.
Amendment 22 #
Proposal for a decision Recital 3 (3) In line with the Partnership Priorities, the EU and Egypt are committed to ensuring accountability, the rule of law, the full respect of human rights, fundamental freedoms, promoting democracy, gender equality and equal opportunities as constitutional rights of all their citizens. These commitments contribute to the advancement of the partnership and to Egypt’s sustainable development and stability. The increased and constructive engagement between the EU and Egypt in the last period has opened the path to more meaningful dialogue on human rights related issues. The subcommittee on Political Matters, Human Rights and Democracy, International and Regional issues of December 2022 and the Association Committee of May 2023 provided the institutional platforms to exchange on an array of human rights issues, which the EU would like to continue and build on.
Amendment 23 #
Proposal for a decision Recital 3 (3) In line with the Partnership Priorities, the EU and Egypt are committed to ensuring accountability, the rule of law, the full respect of human rights, fundamental freedoms, promoting democracy, gender equality and equal opportunities as constitutional rights of all their citizens. These commitments contribute to the advancement of the partnership and to Egypt’s sustainable development and stability. The increased and constructive engagement between the EU and Egypt in the last period has opened the path to more meaningful dialogue on human rights related issues. The subcommittee on Political Matters, Human Rights and Democracy, International and Regional issues of December 2022 and the Association Committee of May 2023 provided the institutional platforms to exchange on an array of human rights issues, which the EU would like to continue and build on. The improvement of the human rights situation in Egypt
Amendment 24 #
Proposal for a decision Recital 5 (5) The EU recognises Egypt's key role for regional security and stability, and has a strong interest in preventing short-term economic instability in the country that could have broader consequences as well as benefit geopolitical rivals. Terrorism, organised crime and conflicts are common threats against our security and the social fabric of nations across both sides of the Mediterranean. Therefore, the EU and Egypt have a common interest in strengthening cooperation highlighted in the Partnership Priorities, in full compliance with international law, including human rights and international humanitarian law, also to promote joint interests and address common challenges.
Amendment 25 #
Proposal for a decision Recital 5 (5) The EU recognises Egypt's key role for regional security and stability
Amendment 26 #
Proposal for a decision Recital 5 (5) The EU recognises Egypt's key role for regional security and stability. Terrorism, organised crime
Amendment 27 #
Proposal for a decision Recital 5 (5) The EU recognises Egypt's key role for regional security and stability. Terrorism, organised crime
Amendment 28 #
Proposal for a decision Recital 5 (5) The EU recognises Egypt's key role for regional security and stability. Terrorism, organised crime, mass migration and conflicts are common threats against our security and the social fabric of nations across both sides of the Mediterranean. Therefore, the EU and Egypt have a common interest in strengthening cooperation highlighted in the Partnership Priorities, in full compliance with international law, including human rights and international humanitarian law.
Amendment 29 #
Proposal for a decision Recital 6 (6) Recalling the geo-political challenges, such as the consequences of the brutal Hamas terrorist attacks across Israel on 7 October 2023
Amendment 30 #
Proposal for a decision Recital 6 (6) Recalling the geo-political challenges, such as the
Amendment 31 #
Proposal for a decision Recital 6 (6) Recalling the geo-political challenges, such as the consequences of Hamas terrorist attacks across Israel on 7 October 2023 and the disproportionate military reaction by the Israel Defense Forces, as well as the conflict in Sudan, and the strategic importance of Egypt as the largest country in the region and a pillar of stability for the whole Middle East, the Union is embarking on concluding a Strategic and Comprehensive partnership with Egypt as outlined in the Joint Declaration.
Amendment 32 #
Proposal for a decision Recital 6 (6) Recalling the geo-political challenges, such as the consequences of Hamas terrorist attacks across Israel on 7 October 2023 as well as the conflict in Sudan, the migration crises or the rise of Islamist fundamentalism, and the strategic importance of Egypt as the largest country in the region and a pillar of stability for the whole Middle East, the Union is embarking on concluding a Strategic and Comprehensive partnership with Egypt as outlined in the Joint Declaration.
Amendment 33 #
Proposal for a decision Recital 6 (6) Recalling the geo-political challenges, such as the broader consequences in the region of Hamas terrorist attacks across Israel on 7 October 2023, as well as the conflict in Sudan, and the strategic importance of Egypt as the largest country in the region and a pillar of stability and security for the whole Middle East, the Union is embarking on concluding a Strategic and Comprehensive partnership with Egypt as outlined in the Joint Declaration.
Amendment 34 #
Proposal for a decision Recital 6 (6) Recalling the geo-political challenges, such as the consequences of Hamas terrorist attacks across Israel on 7 October 2023 as well as the conflict in Sudan and instability in Syria, and the strategic importance of Egypt as the largest country in the region and a pillar of stability for the whole Middle East, the Union is embarking on concluding a Strategic and Comprehensive partnership with Egypt as outlined in the Joint Declaration.
Amendment 35 #
Proposal for a decision Recital 7 (7) The objective of the Strategic and Comprehensive Partnership with Egypt is to elevate the EU-Egypt political relations to a strategic partnership and enable Egypt to fulfil its key role of providing stability in the region. The partnership aims to contribute to support Egypt’s macroeconomic resilience and enable the implementation of ambitious socio- economic reforms
Amendment 36 #
Proposal for a decision Recital 7 (7) The objective of the Strategic and Comprehensive Partnership with Egypt is to elevate the EU-Egypt political relations to a strategic partnership and enable Egypt to fulfil its key role of providing stability in the region. The partnership aims to contribute to support Egypt’s macroeconomic resilience and to help Egypt to tackle illegal migration and to prevent this migration across the Mediterranean to European borders. The partnership will enable the implementation of ambitious socio-
Amendment 37 #
Proposal for a decision Recital 7 (7) The objective of the Strategic and Comprehensive Partnership with Egypt is to elevate the EU-Egypt political relations to a strategic partnership and enable Egypt to fulfil its key role of providing stability in the region with special regards to countering illegal migration flows to Europe. The partnership aims to contribute to support Egypt’s macroeconomic resilience and enable the implementation of ambitious socio-
Amendment 38 #
Proposal for a decision Recital 8 (8) Underpinning the partnership will be a financial package of EUR 7.4 billion consisting of short- and longer-term support for the necessary macro-fiscal and socio-economic reform agenda, as well as increased amounts available to support investments in Egypt and targeted support for the implementation of the different strategic priorities. Part of the support package is the EU MFA package of up to EUR 5 billion in loans, composed of two MFA operations, one short-term for up to EUR 1 billion and a regular, more medium-term one for up to EUR 4 billion, financial instruments, such as guarantees and blending instruments, aimed at mobilising public and private investments with the objective of generating substantial new investments that benefit the entire population. This will be complemented by programmes to support specific priorities under the Strategic and Comprehensive Partnership through individual projects and technical assistance implemented under the Neighbourhood, Development and International Cooperation Instrument2 . _________________ 2 Established by Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing Decision No 466/2014/EU and repealing Regulation (EU) 2017/1601 and Council Regulation (EC, Euratom) No 480/2009 (OJ L 209, 14.6.2021, p. 1)
Amendment 39 #
Proposal for a decision Recital 8 (8) Underpinning the partnership will be a financial package of EUR 7.4 billion consisting of short- and longer-term support for the necessary macro-fiscal and socio-economic reform agenda, as well as increased amounts available to support investments in Egypt and targeted support for the implementation of the different strategic priorities. Part of the support package is the EU MFA package of up to EUR 5 billion in loans, composed of t
Amendment 40 #
Proposal for a decision Recital 9 (9) Egypt’s macro-fiscal situation has faced significant challenges and deteriorated substantially over recent months, as external pressures have intensified and public debt has increased further, with substantial downside risks to the economic outlook persisting. The repercussions of Russia’s war on Ukraine and of Hamas terrorist attacks against Israel have led to protracted capital outflows and lower foreign currency receipts, notably due to sharply falling income from tourism and Suez Canal proceeds. This is particularly challenging amid Egypt’s difficult fiscal situation, which is characterised by constant fiscal deficits and high and growing debt to GDP ratios. Moreover, instability and uncertainty in Syria will further exarcebate the already existing macro- financial issues for Egypt.
Amendment 41 #
Proposal for a decision Recital 9 (9) Egypt’s macro-fiscal situation has faced significant challenges and deteriorated substantially over recent months, as external pressures have intensified and public debt has increased further, with substantial downside risks to the economic outlook persisting. The repercussions of Russia’s war on Ukraine and of Hamas terrorist attacks against Israel and the disproportionate military reaction by the IDF have led to protracted capital outflows and lower foreign currency receipts, notably due to sharply falling income from tourism and Suez Canal proceeds. This is particularly challenging amid Egypt’s difficult fiscal situation, which is characterised by constant fiscal deficits and high and growing debt to GDP ratios.
Amendment 42 #
Proposal for a decision Recital 9 (9) Egypt’s macro-fiscal situation has faced significant challenges and deteriorated substantially over recent months, as external pressures have intensified and public debt has increased further, with substantial downside risks to the economic outlook persisting. The repercussions of Russia’s war on Ukraine and of the situation in the Middle East following the Hamas terrorist attacks against Israel on 7 October 2023 have led to protracted capital outflows and lower foreign currency receipts, notably due to sharply falling income from tourism and Suez Canal proceeds. This is particularly challenging amid Egypt’s difficult fiscal situation, which is characterised by constant fiscal deficits and high and growing debt to GDP ratios.
Amendment 43 #
Proposal for a decision Recital 9 (9) Egypt’s macro-fiscal situation has faced significant challenges and deteriorated substantially over recent months, as external pressures have intensified and public debt has increased further, with substantial downside risks to the economic outlook persisting. The repercussions of Russia’s war on Ukraine and of Hamas terrorist attacks against Israel have led to protracted capital outflows and lower foreign currency receipts, notably due to sharply falling income from tourism and Suez Canal proceeds
Amendment 44 #
Proposal for a decision Recital 9 (9) Egypt’s macro-fiscal situation has faced significant challenges and deteriorated substantially over recent months, as external pressures have intensified and public debt has increased further, with substantial downside risks to the economic outlook persisting. The repercussions of Russia’s war on Ukraine and the broader consequences in the region of Hamas terrorist attacks against Israel have led to protracted capital outflows and lower foreign currency receipts, notably due to sharply falling income from tourism and Suez Canal proceeds. This is particularly challenging amid Egypt’s difficult fiscal situation, which is characterised by constant fiscal deficits and high and growing debt to GDP ratios.
Amendment 45 #
Proposal for a decision Recital 9 (9) Egypt’s macro-fiscal situation has faced significant challenges and deteriorated substantially over recent months, as external pressures have intensified and public debt has increased further, with substantial downside risks to the economic outlook persisting. The repercussions of Russia’s war on Ukraine and of
Amendment 46 #
Proposal for a decision Recital 11 (11) After the adoption of a follow-up IMF programme in December 2022, reform progress was less noticeable, although Egypt has implemented steps to level the playing field between public and private companies through a law to abolish tax privileges of SOEs, albeit with exemptions on the basis of national security, and through the adoption of a state ownership policy, aiming at reducing the presence of the state in the economy, which remains large and distorting despite recent limited progress and clarifying the rationale of continued state involvement in certain strategic sectors.
Amendment 47 #
Proposal for a decision Recital 14 (14) Given that Egypt is a country covered by the European Neighbourhood Policy, and it plays a significant role in curbing migration flows to Europe, it should be considered to be eligible to receive macro-financial assistance from the Union.
Amendment 48 #
Proposal for a decision Recital 17 (17) The Union's macro-financial assistance should aim to support the restoration of a sustainable external financing situation for Egypt thereby supporting its economic
Amendment 49 #
Proposal for a decision Recital 17 (17) The Union's macro-financial assistance should aim to support the restoration of a sustainable external financing situation for Egypt thereby supporting its economic, political and social development.
Amendment 50 #
Proposal for a decision Recital 19 (19) The Commission should ensure that the Union's macro-financial assistance is legally and substantially in line with the key principles, objectives and measures taken within the different areas of external action, and notably with Article 2 of the EU-Egypt Association Agreement of 2004 concerning the respect of democratic principles and fundamental human rights and with other relevant Union policies.
Amendment 51 #
Proposal for a decision Recital 21 (21) The Union's macro-financial assistance should support Egypt's commitment to foster values shared with the Union, including democracy, the rule of law, good governance, respect for human rights, sustainable development and poverty reduction, as well as its commitment to the principles of open, rules-based and fair trade. It will also enable Egypt to tackle, in our mutual interest, illegal immigration, Islamist fundamentalism and terrorism.
Amendment 52 #
Proposal for a decision Recital 21 (21) The Union's macro-financial assistance should
Amendment 53 #
Proposal for a decision Recital 22 (22) A pre-condition for granting the Union's macro-financial assistance to Egypt should be that the country
Amendment 54 #
Proposal for a decision Recital 22 (22) A pre-condition for granting the Union's macro-financial assistance to Egypt should be that the country continues to make concrete and credible steps towards respecting effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights, with notable focus on legislative reforms improving the rights to freedom of expression, association and peaceful assembly, introducing a moratorium on death penalty, combating torture and enforced disappearances, and improving the conditions of prisons. In addition, the specific objectives of the Union's macro- financial assistance should strengthen the efficiency, transparency and accountability of the public finance management systems, the governance and supervision of the financial sector in Egypt and promote structural reforms aimed at supporting sustainable and inclusive growth, decent employment creation and fiscal consolidation. The fulfillment of the pre- condition and the achievement of the specific objectives should be regularly monitored by the Commission services and the European External Action Service.
Amendment 55 #
Proposal for a decision Recital 22 (22) A pre-condition for granting the Union's macro-financial assistance to Egypt should be that the country continues to make concrete and credible steps towards respecting effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights. Particular attention shall be paid to the respect for human rights in areas of shared concern between the Union and Egypt, such as migration management, ensuring that cooperation in these fields adheres to international human rights standards. In addition, the specific objectives of the Union's macro-financial assistance should strengthen the efficiency, transparency and accountability of the public finance management systems, the governance and supervision of the financial sector in Egypt and promote structural reforms aimed at supporting sustainable and inclusive growth, decent employment creation and fiscal consolidation. The fulfillment of the pre-condition and the achievement of the specific objectives should be regularly monitored by the Commission services and the European External Action Service.
Amendment 56 #
Proposal for a decision Recital 22 (22) A pre-condition for granting the Union's macro-financial assistance to Egypt should be that the country
Amendment 57 #
Proposal for a decision Recital 22 (22) A pre-condition for granting the Union's macro-financial assistance to Egypt should be that the country continues to make concrete and credible steps towards respecting effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights. In addition, the specific objectives of the Union's macro-financial assistance should strengthen the efficiency, transparency and accountability of the public finance management systems, the governance and supervision of the financial sector in Egypt and promote structural reforms aimed at supporting sustainable and inclusive growth, effective mechanisms for social redistribution, decent employment creation and fiscal consolidation. The fulfillment of the pre-condition and the achievement of the specific objectives should be regularly monitored by the Commission services and the European External Action Service.
Amendment 58 #
Proposal for a decision Recital 23 (23) In order to ensure that the Union’s financial interests linked to the Union’s macro-financial assistance are protected efficiently, Egypt should take appropriate measures relating to the prevention of, and fight against, fraud, clientelism, corruption and any other irregularities linked to the assistance. In addition, a loan agreement to be concluded between the Commission and the Egyptian authorities should contain provisions authorising European Anti- Fraud Office (OLAF) to carry out investigations, including on-the-spot checks and inspections, in accordance with the provisions and procedures laid down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council3 and Council Regulation (Euratom, EC) No 2185/964 , the Commission and the Court of Auditors to carry out audits and the European Public Prosecutor’s Office to exercise its competences with regard to the provision of the Union’s macro-financial assistance during and after its availability period _________________ 3 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1). 4 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities’ financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).
Amendment 59 #
Proposal for a decision Recital 26 (26) The Union's macro-financial assistance should be managed by the Commission. In order to ensure that the European Parliament and the Council are able to follow the implementation of this Decision, the Commission should
Amendment 60 #
Proposal for a decision Recital 28 (28) The Union's macro-financial assistance should be subject to economic policy
Amendment 61 #
Proposal for a decision Recital 28 (28) The Union's macro-financial assistance should be subject to economic policy conditions, to be laid down in a Memorandum of Understanding. These conditions should also include clear commitments to uphold democratic principles, the rule of law, and respect for human rights, ensuring alignment with the Union’s core values. In order to ensure uniform conditions of implementation and for reasons of efficiency, the Commission should be empowered to negotiate such conditions with the Egyptian authorities under the supervision of the committee of representatives of the Member States in accordance with Regulation (EU) No 182/2011. Under that Regulation, the advisory procedure should, as a general rule, apply in all cases other than as provided for in that Regulation. Considering the potentially important impact of assistance of more than EUR 90 million, it is appropriate that the examination procedure be used for operations above that threshold. Considering the amount of the Union's macro-financial assistance to Egypt, the examination procedure should apply to the adoption of the Memorandum of Understanding, and to any reduction, suspension or cancellation of the assistance.
Amendment 62 #
Proposal for a decision Recital 28 (28) The Union's macro-financial assistance should be subject to economic policy and democracy, rule of law, human and social rights, and social justice conditions, to be laid down in a Memorandum of Understanding. In order to ensure uniform conditions of implementation and for reasons of efficiency, the Commission should be empowered to negotiate such conditions with the Egyptian authorities under the supervision of the committee of representatives of the Member States in accordance with Regulation (EU) No 182/2011. Under that Regulation, the advisory procedure should, as a general rule, apply in all cases other than as provided for in that Regulation. Considering the potentially important impact of assistance of more than EUR 90 million, it is appropriate that the examination procedure be used for operations above that threshold. Considering the amount of the Union's macro-financial assistance to Egypt, the examination procedure should apply to the adoption of the Memorandum of Understanding, and to any reduction, suspension or cancellation of the assistance.
Amendment 63 #
Proposal for a decision Article 1 – paragraph 1 1. The Union shall make macro- financial assistance of a maximum amount of up to EUR 4 billion available to Egypt ("the Union's macro-financial assistance"), with a view to supporting Egypt's economic stabilisation and a substantive reform agenda, as well as fighting mass illegal migration. The release of the Union's macro-financial assistance is subject to the approval of the Union budget for the relevant year by the European Parliament and the Council. The assistance shall contribute to covering Egypt's balance of payments needs as identified in the IMF programme.
Amendment 64 #
Proposal for a decision Article 1 – paragraph 1 1. The Union shall make macro- financial assistance of a maximum amount of up to EUR 4 billion available to Egypt ("the Union's macro-financial assistance"), with a view to supporting Egypt's economic and social stabilisation and a substantive reform agenda. The release of the Union's macro-financial assistance is subject to the approval of the Union budget for the relevant year by the European Parliament and the Council. The assistance shall contribute to covering Egypt's balance of payments needs as identified in the IMF programme.
Amendment 65 #
Proposal for a decision Article 1 – paragraph 3 – subparagraph 1 The release of the Union's macro-financial assistance shall be managed by the Commission in a manner consistent with the agreements or understandings reached between the IMF and Egypt, and with the key principles and objectives of economic, social and judicial reforms set out in the EU-Egypt Association Agreement.
Amendment 66 #
Proposal for a decision Article 1 – paragraph 3 – subparagraph 1 The release of the Union's macro-financial assistance shall be managed by the Commission in a manner consistent with the agreements or understandings reached between the IMF and Egypt, and with the key principles and objectives of economic and democratic reforms set out in the EU- Egypt Association Agreement.
Amendment 67 #
Proposal for a decision Article 1 – paragraph 3 – subparagraph 2 The Commission shall regularly inform the European Parliament and the Council of developments regarding the Union's macro-financial assistance, including disbursements thereof, a
Amendment 68 #
Proposal for a decision Article premier – paragraph 3 – subparagraph 2 a (new) It is essential that funds allocated under this macro-financial assistance are managed transparently so as to ensure that the resources are used properly, in line with the objectives set. The European Union will ensure that effective and independent control and audit mechanisms are in place to prevent any misuse.
Amendment 69 #
Proposal for a decision Article 1 – paragraph 5 5. Where the financing needs of Egypt decrease fundamentally during the period of the disbursement of the Union's macro- financial assistance compared to the initial projections, the Commission, acting in accordance with the examination procedure referred to in Article 7(2), shall reduce the amount of the assistance or suspend or cancel it. The Commission shall inform the Parliament and the Council with a yearly report on the respect of effective democratic mechanisms - including a multi-party parliamentary system - and the rule of law, and guarantees respect for human rights. The Parliament and the Council shall commonly assess the report and, should they agree on finding a significant decline in the respect for democratic and good governance mechanisms, the Commission, acting in accordance with the examination procedure refered to in Article 7(2), shall reduce the amount of the assistance or suspend or cancel it.
Amendment 70 #
Proposal for a decision Article 2 – paragraph 1 1. A pre-condition for granting the Union's macro-financial assistance shall be that Egypt continues to make concrete and credible steps towards respecting effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and
Amendment 71 #
Proposal for a decision Article 2 – paragraph 1 1. A pre-condition for granting the Union's macro-financial assistance shall be that Egypt continues to make concrete and credible steps towards respecting effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees respect for human rights, with notable focus on legislative reforms improving the rights to freedom of expression, association and peaceful assembly, introducing a moratorium on death penalty, combating torture and enforced disappearances, improving the conditions of prisons.
Amendment 72 #
Proposal for a decision Article 2 – paragraph 1 1.
Amendment 73 #
Proposal for a decision Article 2 – paragraph 1 1. A pre-condition for granting the Union's macro-financial assistance shall be that Egypt
Amendment 74 #
Proposal for a decision Article 2 – paragraph 1 1. A pre-condition for granting the Union's macro-financial assistance shall be that Egypt continues to make concrete and credible steps towards respecting effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law,
Amendment 75 #
Proposal for a decision Article 2 – paragraph 1 – point a (new) (a) Egypt must end the systematic detention and prosecution of peaceful activists, opposition representatives and their family members;
Amendment 76 #
Proposal for a decision Article 2 – paragraph 1 – point b (new) (b) Egypt must improve their prison conditions as a matter of urgency and end the torture of prisoners and detainees;
Amendment 77 #
Proposal for a decision Article 2 – paragraph 1 – point c (new) (c) Egypt must end restrictions on the freedom of speech and of assembly;
Amendment 78 #
Proposal for a decision Article 2 – paragraph 1 – point d (new) (d) Egypt must end cross-border persecution of its citizens;
Amendment 79 #
Proposal for a decision Article 2 – paragraph 1 – point e (new) (e) Egypt must overhaul its legal system and end online trials in which defendants do not have the opportunity to speak face to face or privately with their lawyers;
Amendment 80 #
Proposal for a decision Article 2 – paragraph 1 – point f (new) (f) Egypt must proactively start taking action to balance the economy, especially when it comes to curbing inflation;
Amendment 81 #
Proposal for a decision Article 2 – paragraph 1 – point g (new) (g) Egypt must abolish the male guardianship system and put women on an equal legal footing with men;
Amendment 82 #
Proposal for a decision Article 2 – paragraph 1 – point h (new) (h) Egypt must step up its efforts to prevent crimes against sexual minorities;
Amendment 83 #
Proposal for a decision Article 2 – paragraph 1 – point i (new) (i) Egypt must continue promoting democratic mechanisms and the principles of the rule of law;
Amendment 84 #
Proposal for a decision Article 2 – paragraph 2 2. The Commission services and the European External Action Service shall monitor the fulfilment of this pre-condition throughout the life-cycle of the Union's macro-financial assistance in a transparent process. They shall further report, regularly and in writing, to the European Parliament on the conditions in Article 2 (1) and implementation of the applied benchmarks to measure progress. The Commission services and the European External Action Service may request civil society and international entities such as UN organisations to contribute to the monitoring and the report.
Amendment 85 #
Proposal for a decision Article 2 – paragraph 2 2. The Commission services and the European External Action Service shall monitor the fulfilment of this pre-condition throughout the life-cycle of the Union's macro-financial assistance and shall present to the Parliament and to the Council a yearly report on the respect of effective democratic mechanisms.
Amendment 86 #
Proposal for a decision Article 2 – paragraph 2 2. The Commission services and the European External Action Service alone shall monitor the fulfilment of this pre- condition throughout the life-cycle of the Union's macro-financial assistance.
Amendment 87 #
Proposal for a decision Article 3 – paragraph 1 1. The Commission, in accordance with the examination procedure referred to in Article 7(2), shall agree with the Egyptian authorities on clearly defined economic policy and financial conditions, focusing on structural reforms regarding democracy and governance, the rule of law, fundamental rights and sound public finances, to which the Union's macro- financial assistance is to be subject, to be laid down in a Memorandum of Understanding ("the Memorandum of Understanding") which shall include specific actions listed in the Annex for each of the focus areas, as well as a timeframe for the achievement of those reforms. The economic policy and financial conditions set out in the Memorandum of Understanding shall be consistent with the agreements or understandings referred to in Article 1(3), including the macroeconomic adjustment and structural reform programmes implemented by Egypt with the support of the IMF.
Amendment 88 #
Proposal for a decision Article 3 – paragraph 1 1. The Commission, in accordance with the examination procedure referred to in Article 7(2), shall agree with the Egyptian authorities on clearly defined economic policy and financial conditions, focusing on s
Amendment 89 #
Proposal for a decision Article 3 – paragraph 1 1. The Commission, in accordance with the examination procedure referred to in Article 7(2), shall agree with the Egyptian authorities on clearly defined democratic, economic policy and financial conditions, focusing on the respect of effective democratic mechanisms, structural reforms and sound public finances, to which the Union's macro- financial assistance is to be subject, to be laid down in a Memorandum of Understanding ("the Memorandum of Understanding") which shall include a timeframe for the achievement of those democratic and economic reforms. The economic policy and financial conditions set out in the Memorandum of Understanding shall be consistent with the agreements or understandings referred to in Article 1(3), including the macroeconomic adjustment and structural reform programmes implemented by Egypt with the support of the IMF.
Amendment 90 #
Proposal for a decision Article 3 – paragraph 2 2. The conditions referred to in paragraph 1 shall aim, in particular, at introducing reforms towards respecting effective democratic mechanisms - including a multi-party parliamentary system - and the rule of law, and guarantees respect for human rights, with notable focus on legislative reforms improving the rights to freedom of expression, association and peaceful assembly, introducing a moratorium on death penalty, combating torture and enforced disapearances, improving the situation of prisoners, as well as enhancing the efficiency, transparency and accountability of the public finance management systems in Egypt, including for the use of the Union's macro-financial assistance. Progress in mutual market opening, the development of rules-based and fair trade, good governance, fight against corruption, and other priorities in the context of the Union's external policy shall also be duly taken into account when designing the policy measures. Progress in attaining those objectives shall be regularly monitored by the Commission.
Amendment 91 #
Proposal for a decision Article 3 – paragraph 2 2. The conditions referred to in paragraph 1 shall aim, in particular, at enhancing the efficiency, transparency and accountability of the public finance management systems in Egypt, including for the use of the Union's macro-financial assistance. Progress in mutual market opening, sustainable development, poverty reduction and in promoting social justice, the development of rules-based and fair trade, the struggle against clientelism and other priorities in the context of the Union's external policy, including those relating to democracy, rule of law, human and social rights, shall also be duly taken into account when designing the policy measures. Progress in attaining those objectives shall be regularly monitored by the Commission.
Amendment 92 #
Proposal for a decision Article 3 – paragraph 4 4. The Commission shall verify, at regular intervals, that the conditions referred to in Article 4(3) continue to be met, including whether the democratic situation in Egypt is in line with Article 2 of the EU-Egypt Association Agreement of 2004 concerning the respect of democratic principles and fundamental human rights, and whether the economic policies of Egypt are in accordance with the objectives of the Union's macro- financial assistance. For that verification, the Commission shall coordinate closely with the IMF and the World Bank, and, where necessary, with the European Parliament and the Council.
Amendment 93 #
Proposal for a decision Article 4 – paragraph 1 1. Subject to the conditions in paragraph 3, the Union's macro-financial assistance shall be made available by the Commission in three instalments, one short-term for up to EUR 1 billion and two regular, more medium-term ones for up to EUR 2 billion each. The release of the second medium-term instalment of the assistance shall be conditional on the satisfactory implementation of the reporting requirements and tangible progress towards the benchmarks on democracy and governance, rule of law and fundamental rights. The European Parliament and the Council of the European Union shall adopt a separate decision on the disbursement of the second medium-term instalment accordingly. The size of each instalment shall be laid down in the Memorandum of Understanding referred to in Article 3. An instalment may be disbursed in one or more tranches.
Amendment 94 #
Proposal for a decision Article 4 – paragraph 1 1. Subject to the conditions in paragraph 3, the Union's macro-financial assistance shall be made available by the Commission in instalments. The size of each instalment shall be laid down in the Memorandum of Understanding referred to in Article 3. An instalment may be disbursed in one or more tranches, depending on the Parliament's and Council's positive assessment of the Commission yearly report.
Amendment 95 #
Proposal for a decision Article 4 – paragraph 3 – subparagraph 1 – point a (a) the pre-condition set out in Article 2(1), with notable focus on legislative reforms improving the rights to freedom of expression, association and peaceful assembly, introducing a moratorium on the death penalty, combating torture and enforced disappearances, improving the conditions of prisons ;
Amendment 96 #
Proposal for a decision Article 4 – paragraph 3 – subparagraph 1 – point a (a) the pre-conditions set out in Article 2(1);
Amendment 97 #
Proposal for a decision Article 4 – paragraph 3 – subparagraph 1 – point c (c) the satisfactory implementation of the economic policy conditions
Amendment 98 #
Proposal for a decision Article 4 – paragraph 3 – subparagraph 1 – point c (c) the satisfactory implementation of the democratic reforms, economic policy conditions and financial conditions agreed in the Memorandum of Understanding.
Amendment 99 #
Proposal for a decision Article 4 – paragraph 3 – subparagraph 2 The release of the second instalment shall not, in principle, take place earlier than three months after the release of the first instalment. The release of the third instalment shall not, in principle, take place earlier than three months after the release of the second instalment and shall be subject to the approval of the European Parliament and Council of the European Union in line with Article 4 (1).
source: 766.925
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