Egypt and EU Strategic Partnership Review
DiplomacyComments
If the EU is primarily coordinating IMF reforms, would that create a dependency that actually weakens Egypt's leverage in the US-Iran diplomacy discussions?
We saw a similar dynamic with Greece during its bailout years; the external financial constraints essentially dictated their foreign policy alignment for a decade.
The mention of economic cooperation sounds good on paper, but the Egyptian pound's volatility makes long term EU investment a huge risk for any actual business on the ground.
That volatility is exactly why the economic cooperation likely focuses on the IMF's expanded loan facility. The EU is likely acting as a coordinator for the structural reforms required by that credit line.
This meeting happens right as the Doha talks with Iran are gaining momentum. It suggests the EU is coordinating its regional security approach before the US potentially shifts its posture.
eu foreign investment in egypt stagnated since the 2016 currency float.
While overall FDI is flat, the recent surge in green hydrogen projects in the Suez Canal Economic Zone contradicts the idea of total stagnation. The investment is just shifting from general industry to specific energy sectors.