Mr President, Commissioner, I am pleased and honoured to have been appointed rapporteur for the association agreement between the European Union, the Member States and the Arab Republic of Egypt, given the importance of this agreement for both the European Union and Egypt. I believe it is a balanced agreement which treats both parties in an equitable way. The Arab Republic of Egypt is the largest Arab country in terms of population: it has over 66 million inhabitants. It occupies a pivotal position in terms of geopolitical affairs and plays a leading role. Egypt was the first Arab country to establish diplomatic relations with Israel. Since that time, it has continued to have a moderating influence in the region. Relations between the European Union and Egypt go back a long way. The first cooperation agreement was signed in 1972. We must remember that the European Union is Egypt’s most important trading partner. Egypt also receives significant funds from cooperation with the European Union: it received EUR 686 million through the MEDA I programme between 1996 and 1999. The report we are discussing today has been called a new generation report. Its fundamental objective is to help achieve peace and security in the region. It also aims to provide an impetus for the development of commercial and economic relations between Egypt and the European Union, and between Egypt and its Mediterranean partners. The draft agreement is based on respect for democratic principles and fundamental human rights. The main objectives of the agreement are as follows. Firstly, the establishment of an area of free trade between Egypt and the European Union. This will entail the abolition of customs tariffs on industrial products within a period of 12 to 15 years after the agreement enters into force. Secondly, regional cooperation, including the creation of a Euro-Mediterranean area of free trade. Thirdly, it establishes the basis for economic and financial cooperation in many areas, including the fight against terrorism. Lastly, an in-depth dialogue on social issues and cooperation as regards the prevention and control of illegal immigration. I am delighted that this proposal has received the unanimous support of the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy. This shows the interest the report has generated. It has also allowed people to express their concerns and fears; some of these are well founded, others less so. I would like to outline two of the concerns put forward. Firstly, there is the problem of the Coptic minority. Coptic Christians represent more than 10% of the population. It appears that, while they are not systematically persecuted, they do not have the same rights and responsibilities as their fellow Muslim citizens. It is also clear that extremists are to blame for some of the problems as they do everything they can to exacerbate tension between the two religious groups. However, some progress has been made, as confirmed by the Coptic religious leaders. One example is the recent construction of new monasteries and churches, despite the red tape involved. Secondly, certain individuals and groups have been brought before the courts. This has been highly publicised in Egypt and elsewhere. We need to look beyond the initial verdicts. The local court judges are sometimes influenced by fundamentalist teaching and hand down harsh sentences. But, in some instances, higher courts overturn these initial verdicts and act more leniently, in accordance with democratic principles. I am aware that a lot of work still remains to be done on the issues of fairness and justice, but clearly some progress has been made. The leaders from the opposition and from NGOs, who I have met with in the country, confirm this. The report has raised a number of more general concerns. I share some of these, but I must caution those who very willingly step forward to preach to us and to give eulogies on human rights. They should be aware of the need to put their own house in order. It is all too easy for the Egyptians to remind us of our own deficiencies, and they are right to do this. We are open to criticism for having been so lax on a number of issues, particularly as regards the fight against terrorism. We have been reminded that our Member States provide terrorists and murderers, including some Egyptians, with a safe haven where they can live and act with impunity. We must be on our guard. Many Egyptians, including some in important positions, do not wish this agreement to be ratified. They insist that the agreement strongly favours the European Union, especially as regards economic issues, and that it will allow random intrusions into the internal affairs of the State. The recent letter from the People’s Assembly on this matter is inopportune but significant. Given these circumstances, I hope that the great majority of Parliament will vote in favour of ratifying this agreement. It is to be hoped that the agreement will strengthen the role of the European Union in this region and will contribute towards achieving peace. IN THE CHAIR: INGO IEDRICHVice-President

Political group: PPE-DE