H.E. Dr. Rania Al-Mashat: Intensive meetings with national entities and the European side to implement the pillars of the National Structural Reform Program within the Macro-Financial Assistance (MFA) mechanism

In conjunction with the European Parliament's approval of the second tranche worth 4 billion euros

H.E. Dr. Rania Al-Mashat: Intensive meetings with national entities and the European side to implement the pillars of the National Structural Reform Program within the Macro-Financial Assistance (MFA) mechanism

H.E. Dr. Rania A. Al-Mashat, Minister of Planning and Economic Development and International Cooperation, welcomed the European Parliament's approval in its general session today, Tuesday, of the decision to release the second tranche of the Macro-Financial Assistance (MFA) mechanism, worth 4 billion euros.

H.E. Dr. Rania A. Al-Mashat pointed out that the overwhelming support for the decision in the European Parliament reflects the strong relations between the Arab Republic of Egypt and the European Union, and the joint commitment to implementing the terms of the strategic partnership announced last March by H.E. President Abdel Fattah El-Sisi and European Commission President Ursula von der Leyen.

The Minister of Planning and Economic Development and International Cooperation added that within the framework of the ministry's responsibilities, the coming period will witness several coordination and meetings with national entities and the European side, to implement the economic aspect of the Egyptian-European partnership, and complete the package of structural reforms within the second tranche of the Macro-Financial Assistance (MFA) mechanism. The MFA aims to achieve three main pillars: achieving macroeconomic stability and resilience, improving competitiveness and the business environment, and stimulating the green transition, which comes as part of the National Structural Reform Program.

H.E. Minister Al-Mashat mentioned that a meeting was held with Ms. Elena Flores, Director-General for Economic and Financial Affairs at the European Commission, in recent days, as part of the continuous meetings she holds with European Union officials, to discuss the timeline for completing the procedures for the second phase of the Macro-Financial Assistance (MFA) mechanism, and the efforts made by the ministry to coordinate with national entities to implement the structural reforms within the second phase of the mechanism.

This coincides with the coordination procedures undertaken by the European side at the level of the Parliament, the European Council, and the European Commission for the final adoption of the decision.

Since the signing of the Joint Declaration to elevate Egyptian-European relations to the level of a strategic partnership in March 2024, Egypt has received successive European delegations and high-level visits, to review the arrangements for implementing the terms of this partnership, which includes a financial package worth 7.4 billion euros, of which 5 billion euros are within the Macro-Financial Assistance mechanism, 1.8 billion euros are investment guarantees, and 600 million euros are development grants.

The partnership aims to enhance European investments in Egypt, support the Egyptian economy, and expand cooperation within the framework of national priorities; enhance economic stability to ensure a stable and attractive investment environment, encourage investment and trade to contribute to strengthening bilateral economic relations, develop migration and mobility frameworks to ensure the exchange of expertise and human resources in an organized and mutually beneficial manner, and expand efforts to develop human capital.

H.E. Dr. Rania Al-Mashat, Minister of Planning and Economic Development and International Cooperation, announced last December the European Commission's approval to offer funding to Egypt worth one billion euros, within the Macro-Financial Assistance (MFA) mechanism, which is the first phase of funding worth 5 billion euros to be made available until 2027.

During the past year, the Ministry of Planning and Economic Development and International Cooperation led efforts in coordination with the relevant authorities (Central Bank, Ministries of Finance, Social Solidarity, Labor, Investment and Foreign Trade, Electricity and Renewable Energy, as well as the Egyptian Competition Authority, and the Information and Decision Support Center of the Cabinet), to implement several reforms within the three pillars of the Structural Reform Program, including the electronic calculation of salary tax, activating the Unified Public Finance Law to set an annual ceiling for public government debt, and promoting sustainable transformation through the expansion of social protection networks. Also, a decision was issued by the Presidency of the Council of Ministers for all government agencies to send all tax exemptions granted to state-owned companies to prepare a preliminary draft of the exemptions that should be canceled, as well as the establishment of a unified database managed by the State-Owned Companies Inventory and Monitoring Unit, which includes ownership details for all state-owned companies.