Brussels, 11/07/2011 (Agence Europe) - The finance ministers of the countries of the Euro-Mediterranean area are meeting in Brussels on Tuesday 12 July for the annual examination of the operations of FEMIP (Facility for Euro-Mediterranean Investment in Partnership). This meeting comes against the specific historic backdrop of recent political change on the southern shore of Mediterranean and the announcement of international mobilisation in favour of the “Arab revolutions”, firstly in Tunisia and Egypt. The meeting will also take place in a context of continued crisis, which has hit the donor countries in the pocket.
In 2010, however, according to the annual FEMIP report, which will constitute the basis for Tuesday's discussions in Brussels, “economic activity strengthened progressively in the course of 2010, with all countries in the region recording robust growth”. Recovery was noted in the region, as was an increase in exports (18%) of the partner countries. Despite these good results, foreign direct investment (FDI) has responded sensitively to the political climate. According to the report, the volume of FDI fell (30% drop in nominal value, from US$23 billion in 2009 to US$16 billion). The report indicates that there is a danger of “heightened risk aversion towards the region (which has already) negatively affected FDI and private capital flows more generally in 2011”. On top of this come the repercussions (in the case of Tunisia and Egypt) of the crisis in Libya.
In the FEMIP report, the EIB reaches the conclusion that the fallout will be disastrous in both Tunisia and Egypt. This forecast led the countries of the G8, meeting in Deauville (France) on 27 May, to announce the setting in place of exceptional long-term aid of US$40 billion in favour of Tunisia, Egypt and other countries following their lead. The implementation of this programme will be on the agenda of Tuesday's meeting. (F.B./transl.fl)