America Has New Type of Money, Making Some Rich...Should You Get It?

One of America's most controversial CEOs says, "A new form of money in America is making some people (including Elon Musk, Jeff Bezos, and 17 of America's 25 wealthiest individuals), rich. It has nothing to do with gold, bitcoin, or anything like that, but it's 100% legal. The problem? Few Americans have a real understanding of how it works.

The EU plans to fast-track some financial aid to Egypt. The usual funding safeguards will not apply

LORNE COOK
March 29, 2024

BRUSSELS (AP) -- The European Union intends to fast-track some of its aid money to Egypt using an urgent funding procedure that bypasses parliamentary oversight and other safeguards, according to the president of the bloc's executive branch.

The 1 billion euros ($1.1 billion) intended for this is part of a larger package of 7.4 billion euros ($8 billion) in financial assistance to the North African country that the EU announced on March 17.

Egypt has for years relied on cash handouts, often from wealthy Gulf Arab states, as concerns mount that economic pressure and regional conflicts could drive more migrants from the region to Europe's shores.

The EU package includes three year's worth of grants and favorable loans for the Arab world's most populous country. Most of the funds -- 5 billion euros ($5.4 billion) -- are known as macro-financial assistance, or MFA, and would be paid directly to Egypt's Central Bank.

It's rare for the EU to sidestep safeguards, but European Parliament elections are due June 6-9 -- a timeline that if the checks were implemented, would slow the delivery of that money.

With those polls in mind, European Commission President Ursula von der Leyen announced plans for "an urgent MFA operation for up to 1 billion euros" for Egypt, noting in a letter to EU Parliament President Roberta Metsola the country's "rapidly deteriorating economic and fiscal situation."

The letter, seen by The Associated Press, preceded the announcement of the deal with Egypt.

Von der Leyen blamed "a very large exposure to the economic effects of Russia 's full-scale war of aggression on Ukraine, the wars in Gaza and Sudan, and the Houthi attacks in the Red Sea," and said it was "imperative to make sure that a first significant contribution" would get to Egypt by the end of 2024.

To do so, the commission would employ a seldom-used part of the EU treaties, Article 213, which stipulates that the 27 member countries must endorse the funds -- but not the parliament, the bloc's only democratically elected institution.

Not even when COVID-19 spread in 2020 and the EU bailed out governments from the Balkans to the Middle East was this path taken. Nor is it used to keep Ukraine's war-shattered economy afloat, although Kyiv did benefit from it a decade ago, when Russia annexed Crimea and hiked natural gas prices.

Apart from removing the need for parliamentary oversight, the urgent funding procedure also side-steps a requirement for an impact assessment on the effects of the assistance.

Von der Leyen said the new parliament that will be formed after the EU elections would be "fully involved" for the remaining 4 billion euros ($4.3 billion) of MFAs to Egypt, to be disbursed when Cairo agrees to implement "more comprehensive" reforms.

The deal also includes a 1.8 billion euro ($1.9 billion) investment plan and 600 million euros ($647 million) in loans, including at least 200 million euros ($217 million) that will go to Egypt for "migration management."

The fast-track money would inject much-needed funds into the Egyptian economy, which has been hit hard by years of government austerity, the coronavirus pandemic, the fallout from Russia's full-scale invasion of Ukraine, and most recently, the Israel-Hamas war in Gaza.

Usually, MFAs are meant for governments with dire economic woes and to encourage them to introduce reforms. Yet the commission acknowledges that Egypt is "sluggish" on policy revision and already has a "backlog of domestic reforms" to address.

Migration is a key factor driving the EU-Egypt deal. As in previous years, it will be an election issue in the EU and mainstream parties want to keep arrivals down to deprive the far-right of campaign fuel.

The deal in Cairo came just weeks after a pact was sealed with Mauritania involving money to help the country -- a major transit hub for people moving through Africa toward Europe -- beef up border security.

A more substantial agreement was clinched with Tunisia last July, expanding on a model the bloc developed with Turkey in 2015 to stop migrants reaching Europe.

While the Egyptian coast has not been a key launching pad for human traffickers sending overcrowded boats across the Mediterranean Sea to Europe, Egypt faces migratory pressures from the region, with the added looming threat that the Israel-Hamas war could spill across its borders.

The commission, asked by the AP what conditions Egypt should respect to receive urgent funding, said that "relevant and feasible reform priorities would need (to) be selected taking into account the corresponding time horizon."

The commission's website says macro-financial assistance must be "exceptional in nature" and that "a pre-condition for granting MFA is the respect of human rights and effective democratic mechanisms."

Amnesty International has implored the EU to put rights abuses at the center of relations with Egypt -- and the commission concedes that "human rights challenges in Egypt remain significant."

Still, the EU's executive branch maintains that "the political leadership in Egypt has taken several steps putting greater emphasis on the importance of the respect for human rights" in recent years.

Earlier this month, Egypt floated its currency and announced a deal with the International Monetary Fund to increase its bailout loan from $3 billion to $8 billion, moving to shore up an economy hit by a staggering shortage of foreign currency and soaring inflation.

Cairo's coffers will also be replenished with $35 billion from a massive project involving an Emirati consortium to jointly develop the Mediterranean city of Ras el-Hekma.

Since coming to power in 2013, Egyptian President Abdel Fattah el-Sissi has relied heavily on Gulf Arab states, from where an estimated more than $100 billion entered Egypt via Central Bank deposits, fuel aid and other support.

___

Follow AP's coverage of migration issues at https://apnews.com/hub/migration

Continue Reading...

Popular

READ THIS If You Missed Out on the AI Boom - Ad

Radical new biotechnology predicted to grow 320,000% in 3 years. Nvidia's CEO calls it "the next amazing revolution." And one small company poised to dominate this revolution trades for just $10.

Central Banks Buying Gold in Record Numbers - Ad

Most folks have completely missed the fact that the world's Central Banks have been quietly gobbling up as much gold as they can... Stacking it in their locked vaults on pallets in record numbers. Find out why right here (and see what you can do to get in too with just a few dollars).

Wall Street Jumps To All-Time Highs On Soft Inflation, Bond Yields Tumble, Bitcoin Soars, Meme Stocks Face Carnage: What's Driving Markets Wednesday?

The S&P 500 and the Nasdaq 100 indices rose to fresh record highs during morning trading on Wednesday following a broadly in-line inflation report and cooler-than-expected retail sales data for April, as traders increased their rate cut bets.

Top 3 Real Estate Stocks That Are Set To Fly

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down.

Is This Nvidia's Secret Weapon? - Ad

You've likely heard about Nvidia's incredible success in AI. But without this startup's technology, Nvidia's groundbreaking AI chips simply wouldn't be possible. It's still flying under the radar. That could change very soon with a major announcement on the horizon.

Trump Meets With DeSantis, Noem Stirs Up Controversy: How Will Republican Vice President Betting Odds Be Impacted?

The relationship between Donald Trump and Ron DeSantis was heated at times during the Republican primary season, before the Florida governor dropped out of the 2024 presidential election and threw his support behind the

Australian judge says it is unreasonable to require X to hide video of church stabbing for all users

MELBOURNE, Australia (AP) — An Australian judge said it would be unreasonable for the country's internet safety watchdog to require social platform X to hide video of a bishop being in a Sydney church from all of its users globally, as he explained his decision to lift a that had required X to hide the video of the attack.

Market Warning: Don't Buy This... - Ad

Today's "bizzarro" market has one 50-year Wall Street veteran concerned. He believes most investors are about to make this huge mistake.

Top 4 Health Care Stocks Which Could Rescue Your Portfolio This Month

The most oversold stocks in the health care sector presents an opportunity to buy into undervalued companies.

A second scourge is battering Brazil's flooded south: disinformation

SAO PAULO (AP) — While flooding that has devastated Brazil’s Rio Grande do Sul state has yet to subside, another scourge has spread across the region: disinformation on social media that has hampered desperate efforts to get aid to hundreds of thousands in need.

Forget AI...THIS Is Way Bigger - Ad

While the world has been obsessed with AI and ChatGPT... Jeff Bezos has quietly gone all in on a technology that's going to prove to be FAR bigger. If you've never heard of "QaaS" technology you need to

Trump Unphased By Gag Order, Fines: 'Our Constitution Is Far More Important Than Jail'

Donald Trump has been fined $10,000 for violating a gag order 10 times. The former president said he will keep speaking out.

Must-See: Elon's New Invention is Absolutely Insane - Ad

When you click here and see what Elon Musk's new invention does... And how it works... You will NOT believe it. You'll tell yourself this is just science fiction. But Elon just tested this in a real human... And the result was mind-blowing.

Jim Cramer Advises Investors To Stick With Good Companies Despite Short-Term Losses: 'You Just Need To Figure Out Which Companies Deserve Your Confidence'

Cramer, a prominent figure in the finance world, suggested that investors should not emulate the trading habits of large hedge funds. Instead, he recommended a long-term investment strategy, emphasizing the need to anticipate and endure market declines.

Curaleaf Reports Q1 2024 Revenue Of $339M, 48% Gross Margin Amid Strategic Global Expansion

Curaleaf Holdings, Inc. (OTC: CURLF), a leading international cannabis company, reported its financial results for the first quarter of 2024.

No. 1 Clean Energy Stock Pick for 2024? (Hint: Uranium) - Ad

During December 2023, the USA, France, UK, and Canada pledged to TRIPLE their nuclear capacity. Rocketing Uranium prices 74% in less than 6 months.

Joe Biden Calls Donald Trump 'Clearly Unhinged' At Private Fundraiser: 'When He Lost In 2020, Something Snapped In Him'

In a recent private fundraiser, President Joe Biden has characterized his predecessor, Donald Trump, as "clearly unhinged", attributing this change to Trump's loss in the 2020 election.

The Key to Capitalizing on the AI "Gold Rush" - Ad

The AI boom is setting off a $15.7 trillion wealth explosion. Forbes predicts it will unleash the greatest profit engine in history. But only some AI companies and their stock are worth considering. With such rapid market growth, it's crucial to distinguish companies that are fully leveraging AI and more importantly, the ones with mass adoption potential.

Top 3 Materials Stocks You May Want To Dump In May

Three stocks in the materials sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

Could Elon Musk's New Device Save Us from A.I. Apocalypse? - Ad

A strange new era for mankind is upon us... And it's all thanks to Elon Musk's latest creation. So he invented this strange new device to protect us against that A.I. threat. See this strange device you could be wearing some day.

Colombia breaks diplomatic ties with Israel but its military relies on key Israeli-built equipment

BOGOTA, Colombia (AP) — Colombia has become the latest Latin American country to announce that it over its military campaign in Gaza, but the repercussions for the South American nation could be broader than for other countries because of longstanding bilateral agreements over security matters.

America Just Hit a Grim Milestone - Ad

Nearly half of U.S. households currently hold no retirement savings. Retirement expert Dr. David Eifrig says what happens next will separate a small number of winners from a very large number of losers. Learn how to protect yourself and your money with his four simple steps that he shares right here.

Rio de Janeiro set for Madonna’s massive Copacabana beach concert that will be her biggest ever

RIO DE JANEIRO (AP) — Madonna will give a free concrete on Copacabana beach Saturday night, turning its vast stretch of sand into an enormous dance floor. It comes after Rio de Janeiro spent the last few days readying itself for the historic performance by the “Queen of Pop.”

The Next Wave of AI Is Here - Ad

The age of artificial intelligence has been unleashed. The first wave of AI lifted the stocks of Nvidia and other companies producing chips to power AI technology. The new wave of AI has everything to do with software - and it's just getting started.

Federal Judge Indefinitely Postpones Donald Trump's Classified Documents Trial

The trial of ex-President Donald Trump for retaining classified documents has been postponed indefinitely by a federal judge.

Asia Up, Europe Mixed, While Yen Surges Against Dollar - Global Markets Today While US Slept

US stock markets closed higher, driven by strong earnings and mild inflation data. Asian markets also gained, while eurozone and oil prices dipped.

41 Banks Launch Radical New Tech -- Is Yours Next? - Ad

Your bank could soon adopt a powerful new technology that'll have some big implications for your money. At least 41 different banks are already rolling it out, with official support from the Federal Reserve. These changes could leave many people in the dark, but you don't have to be one of them.

Embed-Map-Marijuana-State Laws, ADVISORY

MARIJUANA-STATE LAWS — Map. This AP digital embed map shows the status of state marijuana laws for recreational and medical use. The Biden administration is considering reclassifying marijuana, which remains illegal at the federal level, as a less dangerous drug. This map is current as of May 3, 2024, and will not update. Source: Marijuana Policy Project.

Edmunds: Trade or sell your car? What's best might surprise you

There’s never been a more critical time to know whether it’s better to sell your car privately or trade it in.

"If I Had To Pour Every Single Penny of My Retirement Into Just ONE STOCK..." - Ad

The former Goldman Sachs VP -- who called everything from Microsoft's 1,100% surge... to the death of the 60/40 portfolio -- is now stepping forward with his most explicit message yet: "Make this ONE STOCK the cornerstone of your portfolio."

Why Rivian Stock Is Charging Up Premarket Today

Ahead of a crucial earnings report, Rivian shares have taken off, although the upward move could be due to a reason unrelated to earnings.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright trendadvisor.net
Privacy Policy | Terms of Service