News / Europe

EU Debates Aid Cuts to Egypt

EU official Bernardino Leon
EU official Bernardino Leon
ReutersSelah Hennessy
The European Union is debating whether to cut aid to Egypt following a week of violence that has left nearly 900 people dead. Senior diplomats were in Brussels Monday to discuss the European response but analysts say the outcome could be limited.

The diplomatic meeting in Brussels Monday was a step towards coordinating a European response to Egypt’s bloodshed. On Wednesday, EU foreign ministers are to hold an emergency meeting.  No specific proposals have yet been made, but analysts say suspending Europe’s aid program is an option, as is halting all arms shipments to Egypt.

Last year the European Union pledged nearly $7 billion in aid and loans to Egypt.

Shashank Joshi is an Egypt analyst at the Royal United Services Institute research group in London. He said cutting European aid will not be a huge game changer.

“Simply cutting off aid probably wouldn't be enough and I think one way to apply serious pressure on the Egyptian authorities to cease their campaign of oppression and to force some kind of political accommodation would probably be more robust sanctions” he said.

EU has trade leverage with Egypt

According to Egypt's statistics office, European countries are its biggest trading partner. In 2011 the trade volume reached over $30 billion.

Europe also exports military equipment to Egypt. In the first quarter of this year, Britain approved licenses for about $70 million in military equipment, the bulk for military helicopters. Although some licenses have since been revoked, campaigners are urging Britain to halt all its arms exports to Egypt.

In the United States, for the fiscal year that begins in October, President Barack Obama has requested $1.3 billion in military aid to Egypt.

Joshi said U.S. cuts could have a much more important impact inside Egypt - but he said the U.S. is unlikely to follow in Europe’s footsteps.

"I think the Americans really are not paying much attention to what the Europeans are doing or what anybody else is doing. What they are concerned about is, will this really help or will we lose important influence with the generals?”

On Monday Saudi Arabia said Arab and Islamic countries will support Egypt if Western nations do cut their aid.

The Egyptian army ousted President Mohamed Morsi in early July. Within days, three Gulf Arab states pledged a total of about $12 billion to support the new leadership.

Western aid  will not be Egypt’s biggest concern. But its economy is a major worry said Joshi.

“The effect of any aid cut-off is dwarfed by the broader impact of political unrest on the economy, which is already completely shredded over three years since Mubarak's fall, made worse during Morsi's period of government. And now attacks in key public cities, in tourist towns in the Sinai, means that tourist numbers are drastically falling off.”

Europeans make up about 70 percent of Egypt’s tourist industry. But Germany and others are warning their citizens against unnecessary travel there.

If those travel warnings stay in place it will have a major impact on the Egyptian economy, said Joshi.

Britons lining up for a flight from Heathrow airport on Monday said they were not put off by the recent violence. One man interviewed at the airport, who declined to give his name, said he had visited Egypt during previous periods of unrest and that his Red Sea resort had not been affected by the unrest. 

According to Egyptian government statistics from 2010 tourism created either direct or indirect employment to one in eight Egyptians.

You May Like

Photogallery Pistorius Sentenced, Taken to Prison

Pistorius, convicted of culpable homicide in shooting death of girlfriend Reeva Steenkamp, will likely serve about 10 months of five-year sentence, before completing it under house arrest More

UN to Aid Central Africa in Polio Vaccinations

Synchronized vaccinations will be conducted after Cameroon reports a fifth case of the wild polio virus in its territory More

WHO: Ebola Vaccine May Be in Use by Jan.

WHO assistant director Dr. Marie Paule Kieny says clinical trials of Ebola vaccines are underway or planned in Europe, US and Africa More

This forum has been closed.
Comment Sorting
Comments
     
by: Godwin from: Nigeria
August 19, 2013 2:50 PM
Cutting off aid to Egypt is a very bad idea. Egypt is in need of its good friends now, it is a bad time to show negative impression it, it will only mean direct support for the man-eating Muslim Brotherhood. If you cut arms supplies to Egypt, what happens to the supplies to the Muslim Brotherhood? That will tilt the balance of arms in the country in favor of the Muslim Brotherhood. Or is Europe fueling crisis in Egypt through Muslim Brotherhood?

Sanctions? Another bad approach. Sanctions and aid limitation is simply asking Egypt to reroute its commercial activities to China. Already China is becoming Africa's largest trading partner and including a vacant Egypt will just be like a handover. In fact this is the time that Egypt needs its friends to rally round it to solve the problem of stagnation and regression caused by the Muslim Brotherhood. For once.

Saudi Arabia is leading a positive way. Goes to prove the edge of the so-called dictatorships that are cool-headed over islamic democracy under islamist regimes like Iran, Turkey and Egypt's Muslim Brotherhood. By now the West must be rethinking its support of the removal of the likes of Mubarak and Ben Ali in preference for so-called islamic democracy in Egypt and Tunisia. Those were mistakes in the past, fresh mistakes should be avoided in the present and in the future. Let there be no cutting of aid, no sanctions. Instead let the friends and lovers of Egypt rally round it in its trying time to solve the problems created by the Muslim Brotherhood. Unless Europe wishes Egypt a relapse into oblivion and retrogression into antiquity. Instead let the Muslim Brotherhood be banned forever, not just in Egypt, but everywhere else.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid