Thursday, May 12, 2011

Egypt seeks to 9,000 million euros to keep the country

Three months ago Mubarak is gone, but not a day without representation in Egypt. Tuesday was the turn of the doctors. Like many trade categories, after 30 years of deaf ask for better working conditions and raise salaries. No wonder: the Egyptians paid an average of 329 pounds -40 euros a week, and this according to official statistics Mubarak optimistic.

The problem is that such protest is leaving the economy on the brink of paralysis. Instability has also scared off tourists, the primary source of foreign exchange. In Sharm el Sheikh, for example, hotel occupancy in April was 32%, up from 11% in full apocalyptic revolution, but well below the usual 75%.

"It's not an easy task, says Army Ahmed Nagar, an economist at Al Ahram Center. Must find a balance between meeting the demands of social justice and ensure a climate conducive to foreign investment, which put the economy back on track. " For now, subsidies has risen from 15,000 to 22,000 million euros, but says it can not increase wages without triggering inflation and bulky.

The Government has taken account: it needs investments worth nine billion euros over the next two years, of which 700 are urgently needed to cover this budget. Finance Minister in Washington for help the World Bank and U.S.. UU., Got only promises. "I do not want to commit until you know where this is all about and, above all, as pressure on Egypt not to change its foreign policy, especially regarding Israel," said the veteran columnist Salama Ahmed Salama.

Political pressure also comes from the Gulf, where the democratic experiment in Egypt makes the hair stand like hooks, and even more the (shy) approach to Iran. The prime minister has traveled in recent weeks in Saudi Arabia and Kuwait and will also go to Qatar. The importance of Egypt, the most populous Arab country with 85 million, seems to indicate that the Saudis will eventually giving up.

"They are very upset with our uprising and still cling to the hope of queMubarak again. But sooner or later will realize that it is of interest to the Egyptian economy will not collapse. Because if Egypt falls, falls across the Middle East, "says Hisham Kassem editor. The experiments are not limited to Egyptian democracy, and the eventual change of economic model is what most concerns investors.

El Nagar is one that proposes changing the tax system and eliminate tax breaks for foreign companies. "Egypt can not afford it," he says. But to tax the investors do not have to mean to discourage. We copy the standard tax in developing countries with high foreign investment such as Thailand, China or Turkey.

" It also claims that the situation would improve if they withdraw "the subisidios to energy companies, valued at 4,300 million euros per year, then sell at market price." Quoted France's Lafarge, the Portuguese Cimpor, Britain's Blue Circle or the Mexican company Cemex, which signed contracts with the regime at a time when money was mandatory under the table.

The corruption investigations against the Mubarak regime's leaders are bringing to light obscure agreements and have caused more than a review of the contract. Saudi Prince Talal bin uality has had to return to Egyptian state 75,000 acres of the 100,000 purchased in the south of the country after knowing who paid six euros per acre (or so I came into the public coffers).

At bottom, this is to dismantle the economic model of Mubarak, which was much praise of the International Monetary Fund, but ultimately only served for a corrupt elite is made of gold. "We should not cut with the IMF, but rethink what program is best suited to our development model," says El Nagar.

The IMF can not ignore, is responsible for the situation we are. Supported the scheme, never tired of applauding the privatizations, which are the most corrupt in the history of this country. "

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