Administration planning $1 billion debt relief for Egypt
From The Washington Post:
The Obama administration has decided to provide about $1 billion in debt relief for Egypt, a senior official said Saturday, in the boldest U.S. effort yet to shore up a key Middle East ally as it attempts a democratic transition.
The aid would be part of a major economic aid package that also includes trade and investment incentives, officials said. It is intended to help stabilize Egypt after demonstrations forced out longtime President Hosni Mubarak on Feb. 11.
While the Obama administration has been preoccupied of late with the war in Libya and protests in Syria, it sees Egypt as even more critical for U.S. interests. Washington has long regarded Egypt as a moderating influence in the Middle East. With one-quarter of the world’s Arabs, Egypt could emerge as a democratic model in the region — or, if its revolution fails, a locus of instability or extremism.
Economic assistance for Egypt and Tunisia is “fundamental to our capacity to support their democratic transitions,” a senior State Department official said on the condition of anonymity. He said that officials were in the midst of “intense policy formulation” but that the economic package wasn’t finished. Parts of it will need congressional approval.
The largely peaceful uprisings in Egypt and Tunisia have battered the countries’ economies. Tourism has collapsed; interest rates have jumped. Economic growth in the two countries is expected to plunge as much as four percentage points from last year, according to the International Monetary Fund. The squeeze comes as those nations’ interim governments are trying to create jobs to satisfy the young protesters’ demands.
The Obama administration has decided to provide about $1 billion in debt relief for Egypt, a senior official said Saturday, in the boldest U.S. effort yet to shore up a key Middle East ally as it attempts a democratic transition.
The aid would be part of a major economic aid package that also includes trade and investment incentives, officials said. It is intended to help stabilize Egypt after demonstrations forced out longtime President Hosni Mubarak on Feb. 11.
While the Obama administration has been preoccupied of late with the war in Libya and protests in Syria, it sees Egypt as even more critical for U.S. interests. Washington has long regarded Egypt as a moderating influence in the Middle East. With one-quarter of the world’s Arabs, Egypt could emerge as a democratic model in the region — or, if its revolution fails, a locus of instability or extremism.
Economic assistance for Egypt and Tunisia is “fundamental to our capacity to support their democratic transitions,” a senior State Department official said on the condition of anonymity. He said that officials were in the midst of “intense policy formulation” but that the economic package wasn’t finished. Parts of it will need congressional approval.
The largely peaceful uprisings in Egypt and Tunisia have battered the countries’ economies. Tourism has collapsed; interest rates have jumped. Economic growth in the two countries is expected to plunge as much as four percentage points from last year, according to the International Monetary Fund. The squeeze comes as those nations’ interim governments are trying to create jobs to satisfy the young protesters’ demands.
posted by Sid Cottingham | 7:57 AM
1 Comments:
Why would the US taxpayers want to give 1 billion in aid to any foreign country to prop them up? The American people by a large majority want to end ALL foreign aid and keep the money at home.
Post a Comment
<< Home