EN    EN EN 
EN    EN  EUROPEAN COMMISSION  
Brussels, 12.5.2010 
SEC(2010) 517 final 
  
COMMISSION STAFF WORKING DOCUMENT 
Accompanying the 
 
COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIA MENT AND THE COUNCIL 
Taking stock of the European Neighbourhood Policy (ENP) 
  
Implementation of the European  Neighbourhood Policy in 2009: 
Progress Report Egypt  
 
  
{COM(2010) 207 final} 
{SEC(2010) 513 final} {SEC(2010) 514 final} {SEC(2010) 515 final} {SEC(2010) 516 final} {SEC(2010) 518 final} {SEC(2010) 519 final} {SEC(2010) 520 final} {SEC(2010) 521 final} {SEC(2010) 522 final} {SEC(2010) 523 final} {SEC(2010) 524 final} {SEC(2010) 525 final} 
EN 2   EN 1. BACKGROUND AND OVERALL ASSESSMENT  
Egypt and the European Community first estab lished contractual relatio ns in 1976 by signing 
a Cooperation Agreement. An EU- Egypt Associat ion Agreement entered into force in June 
2004. It sets out in more detail the specific areas that can be  developed bilaterally. On this 
basis, the EU-Egypt ENP Action Plan was appr oved in March 2007 for a period of three to 
five years. The framework for regional co-ope ration is the Euro-Mediterranean Partnership, 
inaugurated in 1995 and reinforced in 2008 with the creation of the Union for the 
Mediterranean (UfM), which establishes a pol icy with ambitious and long-term objectives. 
EU-Egypt meetings took place at the level of  the Association Council, the Association 
Committee, and seven of the eight subcommitt ees. An Economic Dialogue took place and the 
Working Group on Migration, Social  and Consular Affairs met. 
This document reports on progress made on the implementation of the EU-Egypt ENP Action 
Plan between 1 January and 31 December 2009, although developments outside this period 
are also taken into consideration when deemed relevant. It is not  a general review of the 
political and economic situation in Egypt. In addition, for information on regional and multilateral sector processes, please refer to the sectoral report. 
In April 2009, Egypt and the EU jointly decide d to work towards enhancing relations, as 
proposed by Egypt in 2008. It was agreed that an ad hoc  group would be created to consider 
ways for enhancing relations, present policy op tions for strengthening bi lateral relations, and 
explore possibilities for incorporating the resu lts of reflections into the ENP Action Plan. A 
first meeting of the Ad hoc  Group took place in Ju ly 2009. Ideas for enhanc ing relations were 
also discussed by the different technical sub-committees. 
Egypt continues to show commitment to its ENP Action Plan and to be active in the different 
sectoral sub-committee meetings, enabling wide-ra nging and fruitful discu ssions to take place 
on the implementation of priori ties set down in the Associat ion Agreement and the Action 
Plan. In many technical areas progress is enco uraging, while much work still lies ahead.  
2009  was a year marked by Egypt’s commitment to continue its reforms, despite the 
slowdown of the economy  as a result of the international financial crisis. Economic growth 
was at an overall 4.7%, outperforming expect ations, yet not enough to cope with the 
combined challenges of poverty, inflation and unemployment.  
Concerns remain on the pace of the implementati on of reforms in the field of democratisation 
and human rights, although the Government s eems increasingly convinced of the need to 
tackle governance issues as part of its domestic reform agenda. 
Egypt remained an important tr ading partner for the EU desp ite the slowdown of bilateral 
trade in 2009. With the free trad e agreement in the field of ag ricultural products adopted in 
2009, there are good prospects that the economy w ill move up quickly to  take advantage of 
the new opportunities offered by this agreement. Negotiations on the liberalisation of trade in 
services continued through 2009. 
Overall progress on the implementation of the Action Plan in 2009 can be summarised as 
encouraging, with a strong commitment to social, economic and sector reforms, and to a lesser extent to political reform . Moving towards enhanced relati ons is a shared objective of 
EN 3   EN both Egypt and the EU. Continued and consolidat ed progress in areas re lated to human rights 
and democracy will be an important foundation for these. 
2. POLITICAL DIALOGUE AND REFORM  
Democracy and rule of law 
The state of emergency,  instituted in 1981, continued to be in force, having been extended in 
May 2008 for a further two year period, or until new anti-terrorism legislation is passed. A 
draft counter-terrorism law is still under preparation. The furt her extension of the state of 
emergency is cause of concern and disappointme nt. While its lifting as soon as possible is 
important, it will be equally important that the counter-terrorism legislation adopted is in line 
with international standards, thus striking an effective balance between security and individual rights.  
Amendments to the Electoral Law in advance of the 2010 parliamentary elections  had been 
anticipated, but are now unlikely. Such amendmen ts, which would be in accordance with the 
last constitutional amendments, would allow for parties and candidates' lists to coexist with the current individual candid acy system. Egyptian NGOs will be permitted to monitor the 
2010 parliamentary elections. The EU reiterated its offer for t echnical assistance to improve 
the electoral framework including voter registration, but this was not taken up. 
No progress was made on the independence of the  judiciary  which remains subject to the 
Emergency Law. Special courts, such as the emergency state security courts and military 
courts, continue to exercise ju risdiction over security offences. Civilians, especially in cases 
involving national security or terrorism, continue to be tr ied before such courts. No 
amendments to the law of judici al authority aiming at  enhancing judicial independence were 
presented to Parliament. The Ministry of Justice is still capable of infl uencing the career of 
the judges. There have been continuous calls by a growing number of judges to move the 
judicial inspection to the Supr eme Council of Judiciary in orde r to minimise the possibilities 
of the executive intervention in  the judicial affairs. With regard to the reform of the 
administration of justice , Egypt continues to strive to improve efficiency, working on 
training and capacity building for legal professi onals and moving into a second stage of court 
modernisation and making progress towards auto mation in the seven main Governorates. All 
courts of appeal and all primary courts now ha ve some level of auto mation. A legal assistance 
programme was launched within so me family courts, and literature is available to inform the 
public about legal provisions in place for domestic and international family disputes. A performance evaluation programme for primary courts, based on a decree passed in 2009, was 
introduced, and a permanent committee for econo mic courts was established, charged with 
monitoring the performance of such courts. 
Egypt has still not adopted legislative amendments  in the area of pre-tr ial detention, already 
announced in its 2007 voluntary pledge s to the UN Human Rights Council. 
During the first quarter of 2009 the nationa l Transparency and Integrity Committee  (TIC) on 
corruption held three meetings aimed at maintaining, developing and implementing anti -
corruption  policies. The TIC is currently worki ng to develop a national anti-corruption 
strategy. Egypt’s position improved in terms of perceived corruption in international 
comparison. 
EN 4   EN With regard to local administration reform , the Government is finalising a National 
Decentralisation Strategy and a decision was take n to roll out nationwide a pilot project in 
three governorates, designed to strengthen the local  authorities’ financial and administrative 
competences especially in key sectors such as education.  
The EU-Egypt subcommittee on Political Matters , Human rights and democracy, international 
and regional issues met for the second time in July 2009. Dialogue was constructive. 
Human rights and fundamental freedoms 
Egypt was among a number of countries for wh ich a Universal Periodic Review (UPR) under 
the UN Human Rights  Council took place in February 2010. Considerable preparatory work 
was carried out by the Governme nt in 2009, through, for instan ce consultations  with civil 
society organisations and other stakeholders. The Government issued a National Report with 
voluntary pledges. Several civil society organisations submitted their own reports in preparation for the UPR. The Government agre ed to accept 119 of the 165 recommendations 
made during the review, covering inter alia such issues as release of administrative detainees, 
amending the definition of tortur e, investigating and prosecuting torture cases, lifting the state 
of emergency, ensuring compliance of any new an ti-terror law with international human rights 
standards, and protecting the rights of human right s defenders. Fourteen recommendations 
were rejected, seven considered factually in correct, and 25 were deferred to later. 
The application of the Emergenc y Law continues to represent a major obstacle to the full 
enjoyment of human rights and fundamental fr eedoms. Provisions allo w for, in particular , the 
imposition of administrative detention for 45 days without trial, which is renewable 
indefinitely. The state of emergency also provides  for the curtailing of the right to assembly at 
any moment, for the lawfulness of the use of force by the police being judged by the 
executive only, and for administrative detention cases being tried by State Security (military) courts. Court rulings under the Emergency Law often circumvent constitutional and 
international safeguards such as the gua rantee for a fair and impartial trial.  
The National Council for Human Rights (NCHR ) continued to become more active, for 
example by working, together with th e Human Rights Ombudsman’s Office, to  resolve 
complaints made against the police in remote areas through the use of mobile units. The NCHR has also increasingly made  its voice heard, for instance in its report in advance of the 
UPR, and could still be further empowered.  
Egypt is party to the main internationa l and regional human rights instruments
1, but still not to 
most of their optional protocols. Egypt has lodged special or general reservations when 
ratifying treaties when they were judged incompatible with Islamic law.  
Egypt is currently late in submitting a total of si x mandatory periodic reports to five UN treaty 
bodies. In 2009, Egypt accepted for the first time a visit of a UN Special Rapporteur, on the 
Protection and Promotion of Human Rights and Fundamental Freedoms while Countering 
Terrorism (April), and hosted a visit of the Independent Expert on Water and Sanitation. 
                                                 
1 e.g. The International Convention on the Elimination of All Forms of Racial Discrimination (ICERD), 
the International Covenant on Economic Social and Cultural Rights (ICESCR) , the International 
Covenant on Civil and Political Rights (ICCPR), the Convention on the Elimination of Discrimination against Women (CEDAW), the Conven tion against Torture (CAT), the  International Convention on the 
Protection of the Rights of All Migrant Worker s and Members of Their Families (ICRMW), and the 
Convention on the Rights of Persons with Disabilities (CPRD). 
EN 5   EN Egypt retains  the death penalty for 29 crimes and uses it as a deterrent . Death sentences are 
regularly handed down, including for less serious crimes, but th e number of executions is not 
known. There are no reliable statistics on the death penalty.  
Although the problem is acknowle dged by the authorities, lim ited progress was made in 
tackling the practice of torture and ill treatment , mainly in police stations and premises of 
the State Security Investigations. This remain s one of the most serious human rights issues. 
The definition of torture as a criminal offence does not yet fully comply with the UN Convention Against Torture. Egypt has not ye t responded to repeated requests made since 
1996 (and echoed by the EU) for an invitation to the UN Rapporteur on To rture to visit Egypt. 
It is not a party to the Optional Protocol of the UN Convention Against Torture. 
The Egyptian authorities made efforts in 2009 to improve prison conditions  and to respect 
prisoners’ rights. A human rights department was established within the Prisons Sector at the 
Ministry of the Interior with the mandate of  examining any ill-treatment allegations and 
ensuring prisoner protection. There was some progress in 2009 as regards access of international human rights observers to prisons  and detention centres , as both the Executive 
Director of the UN Office on Drugs and Crime and the deputy Head of the African 
Committee on Human  Rights were able to visit prisons. The National Council for Human 
Rights, the National Council for Women and some local independent organisations were also 
allowed to carry out prison in spections. However, most prisons continue to suffer from 
overcrowding and poor sanitation,  and conditions in police stat ions and temporary detention 
centres are a further cause for concern. The I CRC and the Special rapporteur on terrorism has 
not been granted prison access. 
Freedom of expression  is guaranteed by the Egyptian const itution and protected by law. The 
number and readership of independent news papers continued to grow in 2009, generally 
adopting a critical line on Government and Stat e policy. The number of court actions against 
internet bloggers and activists  increased in 2009, with several tried under emergency rather 
than civil law and sentenced to prison. A dr aft broadcast law under preparation in 2008 was 
not finalised for submission to the People's A ssembly in 2009. Under the draft law a national 
authority for broadcasting regulation is to be established, vested with powers to regulate both 
broadcasting and trade in broadcasting equipment,  including licensing of broadcasters and the 
issue of permits. It also provides for the regulat ion of broadcast content and the imposition of 
fines or imprisonment in certain circumstances . A draft law on the regulation of audiovisual 
and the internet has been under preparation for some time.  
With regard to freedom of association and assembly , although these are guaranteed by the 
constitution, they are restrict ed by the provisions of the Emergency Law and the NGO law. 
Associations face restrictive re gistration processes, require pr ior clearance of foreign funds, 
are required to work within a narrow scope of  activities, face repeated security and audit 
inspections and are vulnerable to  closure by ministerial decision.  
With regard to freedom of religion , the Egyptian constitution pr ovides for freedom of belief 
and the free practice of religion. Islam is the of ficial religion and the Islamic Sharia law the 
primary source of legislation. In March 2009 the Minister of the Interi or issued a decree 
recognising the right of adhe rents of non-recognised religi ons to obtain identification 
documents without having to declare themselves as Christian, Jews, or Muslims. Two Bahá'ís  
had their first national identity cards issued in August 2009 that did not specify a religious 
affiliation. A unified code on places of worship wa s to be presented to the National Assembly 
in November 2009, but was withdrawn. Acts of  discrimination and sectarian violence 
continue to be reported. 
EN 6   EN Although Egypt is a signatory to the 1951 Refug ee Convention and to its 1967 Protocol, there 
continue to be reports  of violations of rights of migrants, refug ees and asylum seekers.  
According to official reports, 28  illegal migrants of sub-Sahara n origin were killed at the 
Egyptian-Israeli border in 2009, and in June 2009 up to 1,200 Eritrean asylum-seekers were forcibly returned to their country of origin. Migrants and refugees are subject to arbitrary 
arrest and detention, trials before military courts, and forcible deportation without the 
opportunity to make asylum claims. It is estim ated that several hundred were arrested in 2009.   
Although Egypt continued to enhance the partic ipation of women in political, economic and 
social life (see also "Employmen t and Social policy"), limited progress can be reported in the 
promotion of women’s rights . Egypt maintains reservations on the provisions of the 
Convention on the Elimination of all forms of Discrimination against Women (CEDAW) on 
marriage and divorce and is  not party to its op tional protocol. The Government pledged to 
enact legislation on violence against women before its UPR. A draft law on sexual 
harassment, including amendments to the Pe nal Code, is currently under review by the 
People’s Assembly Legislative Committee. Th e National Council for Women is currently 
working on a strategy to combat violence agai nst women and is expected to produce the 
document in 2010.  
The Government, including the Mi nistry of State for Family and Population established in 
March 2009, made continued progress in its e fforts to combat Female Genital Mutilation 
(FGM). Following the legal proscription of FGM in 2008, the first person was charged for performing it in 2009.  
Good progress continues to be  made to consolidate the rights of the child , following the 
introduction of new legislation in 2008 in lin e with the UN Convention on the Rights of the 
Child. The National Council for Childhood a nd Motherhood carries out a number of 
programmes to protect and enhance children’s  rights. However, sc hool drop-out rates, 
especially among girls, are high and child labour, desp ite the existe nce of legisl ation banning 
it, continues, especially in agricu lture. In January 2009, Egypt launched its  National Child 
Rights Observatory. It aims at promoting child  rights-based and evid ence-based legislation 
and programmes by carrying out surveys on children rights and managing a dedicated 
database.  
No progress was made in 2009 as regards fundamental social rights and core labour 
standards , including guaranteeing the independen ce of trade unions. The Unified Labour 
Law of 2002 continues to govern trade union ri ghts and excludes the es tablishment of new 
trade unions that are not federated in the Gene ral Federation of Trade Unions, thus does not 
allow for trade union pluralism. Effective implementation of the Conventions of the 
International Labour Organisation (ILO) on the right to organise and collective bargaining as 
well as on the freedom of associat ion and the right to organise is still not ensured. A union of 
Real Estate Tax Authority tax collectors wa s formed in 2009, initially tolerated by the 
Government, but their activities have since me t with resistance, placing in doubt the legal 
status of the independent union (not registered with the E gyptian Trade Union Federation – 
existence of trade unions outside this entity is prohibited.) A Memorandum of Understanding 
was signed in April 2009 at the occasion of an  ILO technical coopera tion mission. It includes 
a number of commitments, including an organisation of a workshop with the ILO on 
exchanges of best practices in the field of labour rights. This workshop, initially foreseen for 
July 2009, was postponed twice sine die during the reporting period at  the request of Egypt.  
EN 7   EN With regards to rights of minorities , relations between the Bedouin and the Egyptian 
authorities remain tense, especially over land issues. 
Cooperation on foreign and security policy 
Egypt is an active partner on CFSP  matters. Egypt continued to explore ways for a 
comprehensive solution to the MEPP, in particul ar through its mediation efforts between the 
Palestinian factions, although these did not ach ieve success during the reporting period. Egypt 
hosted a Pledging Conference for the occupied Palestinian terri tory in March 2009 following 
the Gaza conflict. Egypt is al so actively engaged in Africa,  and continues to play an active 
role in the Africa-EU political dialogue taking place in the framework of the Joint Africa-EU 
partnership, in particular th rough its role of lead  country in the implementation of the 
partnership on Democratic Governance and Human Rights and in the partnership on 
Migration, Mobility and Employment.  
Egypt actively supported the continued unificati on of Sudan and backed Arab League and 
African Union moves to foster peace in Darf ur, providing humanitarian assistance and 
contributions to peace-keeping forces. It invite d rebel movements to Cairo for peace talks. 
Egypt backs anti-piracy efforts in the Horn of  Africa, and continues negotiations with Nile 
Basin states who seek a greater  share of Nile rive r waters. Egypt was co-president of the 
Union for the Mediterranean (UfM) throughout 2009 (its two year term ends in mid-2010).  
Egypt continued to work with the EU to iden tify opportunities for tri-lateral co-operation, in 
the context of which Egypt and the EU would join forces as donors to provide support to Sub-
Saharan African countries consistent with the joint Africa-EU Strategic Partnership. 
Discussions between the EU and Egypt on counter-terrorism  took place in March 2009, 
concluding with a call for furt her cooperation of a concrete/operational nature. The UN 
Special Rapporteur on the protection of huma n rights while countering terrorism made his 
first ever visit to Egypt in April 2009, albeit under a limited mandate (only to discuss Egypt's 
draft anti-terror law). A request to make a follow-up visit to Egypt was not accepted. Egypt 
seeks EU and international backing for its initiative to combat th e use of internet for terrorist 
purposes (such as recruitment, inciteme nt, training and production of weapons and 
explosives), arguing that gr eater effectiveness could be  achieved on controlling and 
monitoring internet si tes with international cooperation, without sacrificing freedom of 
expression.  
Egypt continues to activel y pursue a regi onal policy of disarmament and non-proliferation of 
weapons of mass destruction , in particular in the Middle East . Bilaterally and in its capacity 
as chair of the Non-Aligned Movement, Egypt is pressing for a NPT review in 2010 which 
includes the issue of a nuclear-free Middle Ea st. Dialogue between the EU and Egypt on 
disarmament issues continued in 2009, with the EU agreeing in January 2010 to putting the dialogue on a regular basis. 
Egypt has not yet signed the Ottawa Conventio n on the Prohibition of the Use, Stockpiling, 
Production and Transfer of An ti-Personnel Mines and on their Destruction, thus hindering 
possible EU support for mines clear ance in Sinai and El Alamein. 
The Rome Statute of the International Crimin al Court was signed by Egypt in 2000, but it has 
not been ratified. 
EN 8   EN 3. ECONOMIC AND SOCIAL REFORM  
Macroeconomic framework and functioning of the market economy 
The Egyptian economy fared quite well during th e global economic and financial crisis in 
2009. GDP growth decelerated to 4. 7% in fiscal year 2009 that r uns from July 2008 until June 
2009, after growth of around 7% in  the years before. Meanwhile  the Government has been 
stimulating economic activity by  monetary easing and the impl ementation of three fiscal 
packages. 
In February 2009, despite high inflation, the Ce ntral Bank of Egypt lowered its policy rate 
from 11.5% to 8.25% in order to support economic  growth. In June 2009 the fiscal authorities 
launched a second fiscal stimulus package (a fter the first package of EGP 15 billion in 
October 2008) that amounted to EGP 8 billio n and in October 2009 a third one of EGP 10 
billion.  
Although the gross debt is still high at 73% of GDP , public finances deteriorated only slightly. 
The Government kept to its comm itment of a deficit of around 7%  of GDP in fiscal year 2010 
and seems on track for further fiscal consolid ation, which initially would imply a gradual 
reduction of the deficit to 3% of GDP by fiscal year 2011.  
The current account became negative in fiscal year 2009, after severa l years of surplus. 
Revenues from tourism, private transfers, remittances and th e Suez Canal no longer counter-
balanced the trade deficit. The negative curren t account and lower foreign direct investments 
also pushed the balance of payment into deficit. 
The Central Bank pursued an infl ation targeting policy,  but started to manage the float more 
strictly when the global crisis started, by inte rvening occasionally in the foreign exchange 
market. Nonetheless, official foreign exchange reserves remain stable, at more than 15% of 
GDP. 
As already reported last year, the drying up of liquidity in th e banking sector of developed 
countries hampered the process of  privatisation in the Egyptian  banking sector. Strengthening 
of the financial regulatory framework is in progress, in agreement with international 
arrangements and current reforms of the international framework (the Basel II principles for effective banking supervision), in order to maintain financial st ability. Broadening and 
deepening of the financial sector is however  needed to develop an efficient and well-
functioning market sector.  
Major reforms are still ongoing in the pension a nd health insurance systems. The National 
Investment Bank and Social Insurance Funds are being restructured with the result that the 
Government no longer borrows from these institutions.  
The Egyptian economy remains vulnerable. While the main risk for the economy has changed 
in the aftermath of the economic and financial cris is, it is still e ssentially fiscal sustainability 
that is most at stake.  
Employment and social policy 
In 2009, Egypt faced set-backs in terms of human development. It is still committed to reduce  
poverty to 6% of the population by 2022. However, the international food crisis and the rise 
in oil prices hampered the Government’s effo rts to combat poverty: living conditions remain 
EN 9   EN poor for the estimated 20% of Egyptians livi ng under the national pove rty line. Getting the 
right social policy mix to provide access to education and health remains challenging. The 
Government’s food subsidy programme covered up to 63 million people (compared to 38 million in 2008). Poverty is particularly widespr ead in the South of the country and in rural 
areas. 
Social dialogue  remains over-structured and bilateral social dialogue is underdeveloped. The 
Economic and Social Council has still not been  established and the draft decree on its 
establishment, currently under the President’s review, was not  consulted with the social 
partners. Criteria for the distribution of seats remain unclear. The global crisis exacerbated 
social tensions and led to workers’ strikes.  
In October 2009, Egypt hosted the Euro-Medit erranean Summit of Economic and Social 
Councils and Similar Institutions. Egypt conti nued to work with the International Labour 
Organisation on a Decent Work Country Programme. 
The labour market was hit hard by the financial crisis with the return of many Egyptian 
workers from Gulf countri es (approximately 500,000 migrant workers). Official  
unemployment  remains estimated at 9% with a s ubstantial gender gap: around 5.5% for men 
and 18% for women. Youth unemployment is st ill high and job creation for newcomers 
remains a key challenge (around 600,000 young wo rkers per year). In May 2009, Egypt 
launched the National Action Plan dedicated to youth employment for 2010-2015. It aims to 
increase youth employability, promoting dece nt work and vocational training and easing 
recruitment in SMEs. A national employment agency  is yet to be established. The Ministry of 
Manpower and Migration benefits currently from a twinning project in th e field of health and 
safety at work. 
Concerning social inclusion and social protection , a special support scheme already exists 
for those not covered by existing funds and the very poor. The new system of pensions and social insurance was not yet introduced. E gypt also worked over the reporting period on a 
new law for a comprehensive social assistance system (a safety net). 
Egypt continued to enhance participation by women in political, economic and social life. A 
limited Cabinet reshuffle took place in March 2009 with the appointment of Egypt’s third 
female Minister in charge of the new Ministry  for Family and Population Affairs, created in 
March 2009, to supervise e.g. the Nationa l Council for Childhood and Motherhood, the 
National Council for Population as well as the Anti-Narcotic s General Administration. The 
Law on the People's Assembly was amended in June 2009 to add an additional 64 seats reserved solely for women to the total 454 seat s in the People's Assembly, bringing their total 
number to 518 with a 12 % allocation for women.  
The Egyptian Environmental Affairs Agency unde r the aegis of the Ministry of State for 
Environmental Affairs continued to  develop of a national strategy on sustainable 
development , which is expected to be finalised it in 2010. 
A new Strategy for the Sustainable Agricultural Development (SADS) towards 2030 was 
finalised during the reporting period with the support of the Food and Agriculture 
Organisation (FAO), and inputs from the Inte rnational Fund for Agricultural Development 
(IFAD) and the World Bank. The aim is to modernise Egyptian agriculture  based on 
achieving food security and improving the liveli hood of rural inhabitants through the efficient 
use of development resources, the utilisation of  geopolitical and environmental advantages, 
and the comparative advantages of the different  agro-ecological regions . The strategy pursues 
EN 10   EN several strategic objectives, among them the sust ainable use of agricultural natural resources, 
the improvement of the competitiveness of th e agricultural products in local and foreign 
markets, higher rates of food security in st rategic goods, better opportun ities for agricultural 
investment and the improvement of the living standards of rural inha bitants. The proposed 
implementation mechanisms for achieving these strategic objectives include institutional reform and support of the Minist ry of Agriculture and Land Reclamation, of the civil society 
organisations engaged in rural development as well as of agricultural cooperatives. 
Consequently they will also requi re the review and development of all policies related to the 
above-mentioned objectives. 
Despite the existing incentives, including the si gnature of the agreemen t on liberalisation of 
trade in agricultural, processed agricultu ral and fisheries products with the EU (see section 4) , 
the share of investments in agriculture fell from 4% in 2008/9 to 3% in 2009/10. 
In June 2009, the Government decided to abolish the right to acquire land under the 
jurisdiction of the General Au thority for Construction and Ag ricultural Development, known 
as the Agricultural Development Authority, in all national projects such as Toshka, Sinai, Western Delta and East Oweinat. This right is to be replaced by the right of usufruct for a 
period of between 49 and 90 years, especially with regard to the lands that will be open for 
agricultural investment.  
The General Authority for Fish Resources De velopment implements its strategy covering 
fisheries  resources development as well as marine  and freshwater aquaculture. During 2009 
the Authority was working on amendments to th e existing fishing law in order to make it 
compatible with the recommendations and reso lutions of the main international fishing 
organisations, such as the General  Fisheries Commission for the Mediterranean. These 
include measures against illegal unreported and unregulated fishing, as well as monitoring of 
vessels fishing in the Med iterranean by creati on of the Vessel Monitoring System. 
4. T
RADE -RELATED ISSUES , MARKET AND REGULATORY REFORM  
During the reporting period bilateral trade  between Egypt and the EU slowed down 
compared with 2009: Egypt’s exports to the EU contracted by 26.2% and EU exports to Egypt 
in the same period decreased by 0.9%. The tota l volume of trade with the EU was EUR 18.7 
billion in 2009. The EU remained  the first trading partner of Egypt in 2009. The agreement on 
further liberalisation of bilateral  trade  in agricultural, processed ag ricultural products and fish 
and fishery products, was signed by the two parties in October 2009 and following the 
approval by the Egyptian Parliament, is expect ed to enter into force in June 2010. The 
agreement provides for the dismantling of tariffs a pplied to the trade of agricultural, processed 
agricultural and fish and fish ery products, leaving only a very  limited number of sensitive 
products subject to certain protections on both sides.  
During the reporting period the di smantling of industrial tariffs proceeded in line with the 
Association Agreement. However, for a limited number of industrial a nd agricultural products 
the Ministry of Trade and Industry adopted trade-distortive measures aiming either at 
protecting some sectors from international co mpetition or at supplying the domestic market 
with low priced products. In October 2009, the ban applicable to exports of rice was modified: 
export is currently allowed only for holders of export licences, which may be obtained after a 
procedure of a public tender and may not be tr ansferred from one comp any to another. In 
January 2009, the Egyptian Government imposed a duty of EGP 500 per tonne on imports of 
EN 11   EN white sugar to protect the local sugar industry. In August 2009, all import duties on sugar 
(whether on raw or refined sugar) were lifte d until the end of December 2009. In December 
2009, the exemption of duties on sugar was exte nded until the end of June 2010. The measure 
aims at lowering domestic prices for sugar, in line with the policy of subsidising basic 
foodstuffs for citizens, especially those of the low income segment. 
In April 2009, Egypt re-established an export ban on cement and clinker, as a measure to 
reduce prices on the local market. In July 2009, Egypt decided to extend this export ban. 
No progress was registered in the negotiations  on the establishment of  a dispute settlement 
mechanism. An action plan to set up a custom s union with Jordan was adopted in December 
2009. The two countries have agreed to aim fo r a unified customs law and common external 
tariff and to harmonise other relevant laws. 
The new customs  law which was expected to be adopt ed during the reporting period has yet 
to be approved by Parliament. The interactive E nglish version of the we bsite of the Egyptian 
Customs Authority is still not operational. 
On free movement of goods and technical regulations, Egypt speeded up preparations for 
negotiations of an Agreement on Conformity  Assessment and Acceptance of Industrial 
Products (ACAA) and requested opening of the negotiations soon. In December 2009, an EU 
expert mission reviewed the progress of E gypt’s ACAA preparations. A new harmonisation 
strategy was adopted by the Egyptian Organi sation for Standardisation. The Egyptian 
Accreditation Council was recognised as an a ssociate member of European Cooperation for 
Accreditation and as a full member of bo th International Laboratory Accreditation 
Cooperation and the International Accreditation Forum in October 2009. Sector legislation in 
harmonisation with EU directives  was issued for toys and elec tric appliances. EU standards 
were adopted as Egyptian standa rds, and conflicting norms were  abolished for toys, vehicles 
and vehicle parts, low voltage equipment as well as milk and milk products. The Consumer 
Protection Agency became fully operational in 2009. Egypt signed cooperation agreements 
with some European laboratories which coul d provide services directly to Egyptian 
companies in 2009. 
In the sanitary and phyto-sanitary  field, the Government submitted to Parliament a draft 
law aiming to establish a single food safety  authority. A unified food law is also in 
preparation. Due to the inte rception of brown-rot infested  potatoes from Egypt during the 
2008/2009 import season, the European Commis sion banned, as from August 2009, imports 
into the EU of Egyptian ware potatoes. Thanks  to Egyptian guarantees, trade has resumed for 
the 2009/2010 season. In April 2009, the European Commission’s Food and Veterinary Office 
carried out a mission to Egypt on the control of fishery products. Egypt subsequently provided 
an action plan to address th e deficiencies identified.  
Egypt continued to combat, on the basis of the National Integrated Plan  for Avian and Human 
Influenza, the serious avian influenza outbreak of 2006, whic h continues to cause human 
fatalities. Referring to the outbreak of A (H1N1)  influenza (‘swine flu’), Egypt decided to 
slaughter pigs raised in the country. It is however noted th at international organisations 
(WHO, FAO, Codex Alimentari us, OIE) stated that pork and pork products, handled in 
accordance with good hygienic practic es will not be a source of infection for human beings 
(see also the section on health).  In 2009, Egypt linked up to the external window of the EU’s 
Rapid Alert System for Food and Feed.   
EN 12   EN Limited progress can be reported in the field of establishment, business climate and 
company law . The draft Unified Company Law is under deliberation and is expected to be 
passed to Parliament for possible adoption by  mid-2010. Its aim is to unify the rules on 
corporate governance, transparency, limits of  commitments of board s of directors and on 
internal and external audit. It also addresses problems con cerning legal forms, individual 
project systems, mergers and acqui sition as well as exit rules and liquidation. Since July 2009, 
the General Authority for Investments has been  the only institution responsible for company 
registration. It is working on  a system of electronic registration for companies. 
Bilateral negotiations on liberalisation of services  and establishment continued in 2009.  
On financial services , banking supervision reforms are on-going. Since 2009, they have been 
focusing on restructuring specialised banks, sust aining operational structures of state owned 
banks, developing access to finance and enforci ng corporate governance in the banks. Draft 
regulations are under prep aration. Banks continued to prepar e for adoption of International 
Financial Reporting Standards (IFRS) by the end of 2010. A project on the adoption of the 
Basel II principles for effective banking superv ision started in January  2009. The initial phase 
is focusing on strategic issues. Ro ll-out of the system is expected by 2011. A unified financial 
supervision authority, the Egyptia n Financial Supervisory Authority, was established in July 
2009 on the basis of the February 2009 law. Th e new Authority replaced the Capital Market 
Authority, the Egyptian Insurance Supervis ory Authority and th e Mortgage Finance 
Authority, and will supervise all non-banking fi nancial transactions and markets including 
capital markets, derivative markets on financia l assets and commodities, insurance contracts 
and services, mortgage finance, financial leasin g, factoring and secur itisation. Amendments to 
the mortgage law are underway. In October 2009, in order to develop the micro-finance 
sector, the Ministry of Investment finalised  the preparation of a law on micro-finance 
companies.  
Other key areas 
Modernisation and simplification of the tax administration conti nued during 2009, including 
external assistance. The average time necessary  needed by businesses to prepare and file tax 
returns and to pay taxes decreased considerably. 
The Egyptian Competition Authority (ECA) continued to pursue violations of competition  
rules on the basis of its st rengthened powers, granted by the 2008 amendments to the 
competition law. The law addresses three types of violations: horizontal agreements, vertical agreements and abuse of dominance. Criminal  cases are dealt by the Economic Courts which 
have been operational since 2008. In 2009, the ECA organised several training courses, 
conducted research and advocacy activities, and coordinated with regulatory bodies. ECA staff have law enforcement powers and may sei ze documents. ECA also participates actively 
in the working groups of the International Competition Network (ICN). With regard to state 
aid, the Egyptian authorities expressed interest in  developing legal prov isions for state aid 
based on the EU model and in  conducting a technical dialogue  on the subject with the 
European Commission. 
Limited progress was made on intellectual property rights . In September 2009, Egypt 
ratified the Madrid Protocol relating to the Madrid Agreement concerning the International 
Registration of Marks. It is also in the fina l stage of acceding to the International Convention 
for the Protection of New Varieties of Plants  (UPOV). In order to fulfil its Action Plan 
commitments, Egypt still needs to accede to the Rome Convention for the Protection of 
EN 13   EN Performers, Producers of Phonograms and Broad casting Organisations and to the Budapest 
Treaty on the International Recogni tion of the Deposit of Micro-organisms for the Purposes of 
Patent Procedures; as well as to ensure s ound enforcement of intellectual property rights. 
A public procurement  gap analysis was completed in  September 2009 with a view to 
amending the legislation by May 2010. The Governme nt continued to work closely with the 
OECD to prepare a public procurement assessmen t of the country. A numb er of measures are 
also on-going to strengthen the capacities of  the procurement operators in the public and 
private sectors. Provisions for e-bidding and e- evaluation are under preparation. In the area of 
statistics , Egypt cooperated fully over the reporting period in the regional working group 
bringing together representatives of the statis tical offices of Israel, Jordan, the Palestinian 
Authority and Egypt which aims in particular  at defining a work  programme to reduce 
asymmetries in the future. Egypt worked over the reporting period on a draft national  statistics 
law. Draft action plans were al so developed with a view to improving input data to national 
accounts and to enhancing the quality  of domestic trade statistics. 
As regards  accounting, translation of international financ ial reporting standards into Arabic 
was completed over the reporting period and E gypt worked on the revision of its accounting 
law. Discussions about inter-Arab auditing and accounting standards are on-going. A new 
authority, the Audit Oversight Board, is now responsible for supervising the quality of the 
work of registered auditors.  
With regard to public internal financial control, the Ministry of Finance received an IMF 
mission in June 2009 to advise on fiscal decentralisation and on the public finance management measures necessary to implement it, including the priority areas of internal audit and control. In addition, a public expenditure financial accountability assessment carried out by the European Commission and the World Bank in  December 2009 raised the need to put in 
place an effective internal audit and financial control system. However, the pace of reform 
remains slow with no internal audit function established for overall budgetary expenditure. 
On enterprise policy , Egypt continued to implement the Euro-Mediterranean Charter for 
Enterprise.As part of wider banking reforms, acc ess to finance for SMEs has been facilitated 
since the end of 2008. In 2009, Technology and I nnovation Centres also expanded their range 
of services, increased a number of industria l sectors, and enhanced innovation capacity in 
existing priority sectors. There is now better geographical coverage of  services in greater 
Cairo and beyond. Egypt also part icipated in a pilot projec t on entrepreneurial skills 
development in higher education and established a National Entrepreneurship Committee whose mandate includes lifelong en trepreneurial learning.  Preliminary results of a joint study 
on business climate conducted under the Busine ss Climate Development Strategy (BCDS) 
were presented in October 2009. 
5. COOPERATION  ON  JUSTICE,  FREEDOM  AND  SECURITY 
The third meetings of the EU-Egypt subcomm ittee on Justice and Security and the Working 
Group on Migration, Social and Consul ar Affairs took place in May 2009.  
No progress was reported on border management . Egypt has declined to enter into dialogue 
on this issue. 
Egypt has bilateral migration agreements in place including provisions on the economic and 
social rights of migrants. No major devel opments were noted in the reporting period (see 
further chapter 2).  
EN 14   EN In the fight against organised crime , in June 2009 the National Committee to Combat and 
Prevent Trafficking in Persons prepared compre hensive anti-trafficking legislation covering 
penalties, measures to assist victims, es tablishment of a special assistance fund and 
international cooperation. The legislation a dopts a victim-based approach, emphasising de-
criminalisation of illegal acts committed by vict ims in line with international standards and 
practice. In this context, the Ministry of the Interior established speci al anti-trafficking units 
for illegal migration, women and children. In addition, separate draft legislation to control 
transfers of human or gans was prepared.  
Egypt co-chaired the first comprehensive world report on trafficking in persons in February 
2009 and continued negotiations, initiated in 200 8, on the adoption of a Global Action Plan to 
combat trafficking in human beings in the cont ext of the UN and the African Union. In April 
2009, members of the National Committee and repres entatives of relevant line ministries 
participated in a TAIEX study visit on border control and organised crime organised by the 
Serious Organised Crime Agency in the UK.  Moreover, the National Committee cooperated 
with the National Centre for Social and Cr iminological Research on a survey of human 
trafficking including forced marri ages and trafficking of childr en for labour exploitation. To 
combat cybercrime, the National Centre for Judi cial Studies organised a specialized training 
for judges and prosecutors in c ooperation with the Ministry of  the Interior. Egypt made no 
progress with ratification of the Third A dditional Protocol to the 2003 United Nations 
Convention against Transnational Organise d Crime on the Illicit Manufacturing of and 
Trafficking in Firearms, Their Parts, Components and Ammunition. 
In the fight against drugs , limiting drug supply and trafficking remained Egypt’s priority 
with particular attention to eradicating drug cultivation, trade networks and precursors. Cooperation with EU and international counterpa rts and with authorities in neighbouring ENP 
and Arab countries yielded positive results in terms of increased seizures. The Fund for Drug 
Control and Treatment of Addiction and th e National Council on Addiction Control and 
Treatment were placed under the authority of th e Ministry of the Family and Population, now 
vested with overall responsibility for implemen tation of the National Dr ugs Strategy. In this 
respect, preventive and harm reduction prog rammes were implemented via schools, youth 
networks, family empowerment initiatives and hi gher education institutions. Cooperation with 
civil society groups on implementation of the st rategy continued. However, to fulfil the ENP 
Action Plan commitment, a greater flow and exch ange of information is needed between all 
agencies involved, with renewed attention to developing drug-abuse and harm-reduction 
programmes in prisons.  
With regard to the fight against money laundering , the relevant supervisory authorities 
continued to implement the national contro l regime based upon the ‘40 plus 9’ Special 
Recommendations by the Financial Action Task Force (FATF) while the financial services 
industry pursued application of KYC (‘know your customer’) and KYB (‘know your business’) practices. The National Centre for J udicial Studies added ba sic training on anti-
money laundering for both prosecutors and judg es to its curriculum in 2009. Egypt pursued 
regional cooperation within the Middle East and North Africa Financial Action Task Force (MENAFATF) and Egmont Groups. 
With regard to international police and judicial cooperation, Egypt participated in the Hague 
Conference on Private International Law and con tinued work on the signature and ratification 
of the various instruments to which it is part y. Legal jurisdiction issu es may possibly hinder 
Egypt’s accession to instruments such as  the 1996 Hague Convention on Protection of 
Children and the 1980 Hague Convention on Child  Abduction. However, international police 
EN 15   EN and judicial cooperation was successfully pursued  particularly in the area of cross-frontier 
family disputes.  
6. TRANSPORT , ENERGY , ENVIRONMENT , THE INFORMATION SOCIETY , RESEARCH AND 
DEVELOPMENT  
In the field of transport , Egypt’s reform agenda is s upported by the EU under a EUR 80 
million transport sector policy support progra mme, signed in March 2009. These reforms aim 
to establish an institutional and regulatory fram ework best suited for an efficient, competitive, 
safe and sustainable multimodal land (“rail & road”) and inland waterway freight transport system. This target will be achieved through establis hing an appropriate legal framework and 
institutional set-up for policy making and plan ning, improving the efficiency of state-owned 
and private operators, preparing for independe nt market regulators and applying adequate 
safety and environmental rules and standard s. The reforms also encourage effective 
investment planning and appropriate budge t allocation for the necessary transport 
infrastructure and through f acilitating public private part nerships. Three ongoing twinning 
projects on road safety, railway safety and ma ritime safety are complementing this reform. 
In the road sector, Egypt took st eps to establish a transparent regulatory process for issuing 
road freight transport operator licenses and gr anting access to the profession in line with EU 
standards. Egypt is also preparing a law and re levant regulations which will make road safety 
audits (RSA) and road safety inspecti ons mandatory for all public roads. 
In the rail sector, a number of structural re forms (such as on safety, customer service and 
freight transport) are being implemented in thr ee phases over five years (until 2011) albeit at a 
somewhat slower pace in 2009. 
In the field of civil aviation, Egypt made effort s to reform the sector and upgrade the existing 
infrastructures. In April 2009, th e third terminal was officially opened at Cairo international 
airport. It is now fully operational. Negotia tions between the European Commission and the 
Egyptian authorities on the horiz ontal agreement con tinued in 2009 and the two parties agreed 
to hold a final round of negotiations by July 2010. As regards aviation safety, certain Egyptian 
air carriers had difficulties comp lying with internati onal safety standards in 2009. This led to 
the introduction and implementation of corrective actions under the supervision of the Civil 
Aviation Authority of Egypt. 
In 2009 the Egyptian Government continued to promote inland waterways as an alternative 
mode of transport. Dredging and setting of na vigation aids for some routes were completed 
during the reporting period. 
In the maritime sector, Egypt continued to strengt hen its administrative ca pacity, in particular 
regarding the training of Port State surveyors and the setting up of an accident investigation 
bureau. A maritime framework law, bringing Egypt’s maritime legislation closer to 
international and EU standards, wa s sent to the Cabinet for approval . However, the October 
2009 decree stating that the Egyptian ‘partner shar e’ in all companies in  the maritime services 
must be not less than 51% creates a barrier to  liberalization of services. Foreign companies 
have one year to make the necessary adaptations. Although Egypt took steps to improve flag state implementation, the Egyptian flag is still on the black list of the Paris Memorandum of 
Understanding on Port State Control.  
EN 16   EN Egypt and the EU further strengthened energy  relations inter alia  in the context of the 2008 
Memorandum of Understanding on a strate gic partnership on energy. Egypt, a major 
hydrocarbons producer and consumer, re called that it wished to play  a role in the EU’s energy 
security and to become an energy bridge conn ecting the Mashraq countries, Iraq, the Middle 
East, Africa and the EU. In this context, Egypt  supported the development of the Southern gas 
corridor inter alia  by participating, in  May 2009, in the Prague  Summit on the Southern 
Corridor. Egypt also promoted completion of th e Arab Gas Pipeline, which currently reaches 
Syria and should - via Turkey - connect with the EU. Egypt also supported the establishment 
of Mediterranean electricity and gas intercon nections and the Mediterranean Solar Plan, 
which, once realised, could be a basis for electricity exports to the EU. 
During 2009 Egypt moved forward with the pr eparation of a new energy strategy until 2030. 
The strategy should become the framework for energy sector liberalisation including reform 
of the current system of energy subsidies. E gypt continued its preparations for necessary 
reforms in the electricity, gas and petroleum sectors. The reforms would include the establishment of a gas and oil regulator. Egypt  pursued studies to assess potential use of 
domestic oil shale and uranium reserves.  
Egypt further constructed domestic gas pipeline s and completed the Gizah-Aswan pipe with a 
view to expand the number of households connect ed. It pursued work on gas interconnection 
options with the occupied Palestinia n territory (Gaza), Libya and Sudan.  
In 2009, Egypt upgraded and extended domestic el ectricity networks in cluding in rural areas, 
which contributed to reduci ng network losses. It conti nued to promote electricity 
interconnections between Mashra q and Maghreb countries and to  study interconnections with 
the occupied Palestinian terr itory (Gaza) and other neighbours. Egypt started to export 
electricity to Lebanon, through Jo rdan and Syria. Plans were made to upgrade the undersea 
cable to Jordan. 
Egypt continued working towards in creased use of renewable energi es with a view  to reach its 
objective to meet 20 % of el ectricity demand by renewable energy by 2020. A renewable 
energy plan is being prepared. Regarding energy  efficiency, it created a special unit directly 
attached to the Prime Minister's office. Egypt continued to implement a package of measures 
in this area such as on labelling of domestic a ppliances and on the deve lopment of major wind 
farms and solar projects.  
Egypt prepared the future cons truction of nuclear power plan ts including by advancing the 
draft nuclear energy law. This law provides, inter alia , for the establishment of an 
independent nuclear regulator. The EU and Egyp t started a project, under the Nuclear Safety 
Cooperation Instrument, aiming at develo ping and strengthening Egyptian nuclear 
institutions. 
The National Steering Committee for Climate Change  started operations focusing on 
adaptation. Egypt continued to prepare it s Second National Communication to the UN 
Framework Convention on Climate Change, including a greenhouse gas inventory, an 
assessment of climate impacts and adaptation measures. Egypt also took some steps to 
prepare a national strategy on adaptation to c limate change. Egypt adopted guidelines on 
Clean Development Mechanism Projects (CDM ) and took steps to prepare and approve 
further CDM projects. One new such project was registered at UN level,  bringing the overall 
number of registered projects to five. Egypt di d not yet associate itself with the Copenhagen 
EN 17   EN Accord and is therefore encouraged to do so as  soon as possible and to provide information on 
the targets or actions that it will implement.  
In the field of environment,  implementation of the national environmental action plan (2002-
2017) continued during 2009. The legislative fr amework continues to require further 
development, in particular wi th regard to implementing legislation. In this respect, 
amendments to the Law for the Protec tion of the Environment were adopted, inter alia  
strengthening requirements with regard to environmental impact assessments.  
Existing implementing legislation was modified  and new legislation adopted to further 
strengthen the protection of the Nile River and waterways from pollution.  New legislation on 
water and wastewater as well as on waste mana gement is under preparation. A national master 
plan for water and wastewater was approved. A national solid waste management strategy and 
an integrated coastal zone management strategy are under preparation.  Steps were taken to 
provide training and capacity bu ilding on air quality i ssues and to increase the number of air 
pollution monitoring stations.  Continued attention is  required to implemen t existing strategies 
and plans and to further enhance monitoring and enforcement.  
Training was provided to judges to enable their participation in the specialised courts (Green 
Courts) for environment-related cases. Some steps were taken to enhance the capacities of the 
regional administration with regard to environm ent issues, but a major challenge is still to 
strengthen administrative implementation capac ity at all levels of the country, including 
coordination between authorities. Some actio ns were taken promote the integration of 
environmental considerations into other polic y sectors such as energy and transport.  
Egypt continued to publish environmental informa tion on a regular basis, such as reports on 
the state of the environment, and carried out so me activities to inform and involve the public. 
Steps were taken to implement the co mmunication strategy which addresses, inter alia , 
environmental education and public par ticipation. Requirements for conducting 
environmental impact assessments (EIA) were  strengthened. However, public consultation 
continues not to be mandatory for all EIA stud ies. Some preparatory steps were taken to 
strengthen the capacity of the administration to undertake strategic environment assessments, 
such as with regard to th e Gulf El Zeit wind park.  
Egypt took steps towards ratifying the amendments  to the Land-Based Sources Protocol to the 
Barcelona Convention for the Protection of the Marine Environment and the Coastal Region 
of the Mediterranean, and took so me steps towards acceding to its Integrated Coastal Zone 
Management Protocol and its Emergency Protocol. However, the implementation of already 
ratified agreements requires particular attenti on. Egypt continued to participate in the Horizon 
2020 Initiative and the Mediterran ean Action Plan. Egypt has contri buted to the pr eparation of 
a strategy for water in the Mediterranean (which failed to get approval at the recent ministerial 
meeting of the Union for the Mediterranean),  and the EU Water Initiative, including a 
national policy dialogue. Cooperation and info rmation exchange took place between the 
European Commission and Egypt, including on water, pollution reduction in the 
Mediterranean region and environmental reporting. 
In the field of civil protection,  Egypt took part in a new phase  of activities of the Euro-
Mediterranean Programme for the Prevention, Preparedness and Response to Natural and 
Man-Made Disasters that st arted in 2009, continuing the pr ocess of strengthening civil 
protection activities in the regi on, enhancing capacities at regi onal, national and local levels, 
and promoting institutional coop eration. Hereby, further steps were taken to bring Egypt 
EN 18   EN closer to the European Civil Protection Mechan ism, contributing at the same time to the 
development in the region of a civil protectio n culture based on an integrated approach 
covering disaster prevention, preparedness and response. 
In the field of the information society , the Ministry of Communi cations and Information 
Technology continued in 2009 to advance its ”Strateg ic Plan of Information Technology” 
promoting the application of ICT to various sect ors, such as the health sector through the e-
Health, which includes initiatives such as remo te diagnosis possibilities. Egypt continued to 
improve access to ICT throughout its school ne twork, through the provision of hardware, 
teacher training, and community involvement in school management.  
In order to promote access for all to high-qualit y digital content, including Arabic language 
content, and the safe use of internet for child ren, including raising awareness of the risk of 
child pornography, a draft law on data protection, privacy and cyber crime is being prepared. 
Egypt announced in November 2009 that it w ould open the world's first Arabic language 
Internet domain, called ". masr ". 
The National Telecommunication Regulatory Aut hority continued to align the regulatory 
framework with that of the EU, in 2009 not ably to enhance licensing and competition, 
regulate interconnection and local loop unbundli ng. A public consultation took place on the 
framework for assessing dominance in coopera tion with the national competition authority. 
The Authority issued a decision to tender the pr ovision of triple play services (cable, voice 
and internet) in 'closed resi dential compounds' of up to 5,000 re sidential units  per compound. 
The deadline for submitting applications is Ma rch 2010 and the two licences will be granted 
after evaluation.  
The procedure to grant a second fixed license wa s postponed due to the financial crisis and a 
new deadline has not been set yet. 
In the audiovisual sector, the draft broadcasting law has yet to be agreed by the Cabinet of 
Ministers for presentatio n to the Government (see chapter 2).   
In the area of research and innovation,  the Egyptian Ministry of Higher Education and 
Scientific Research continued to implement its reform strategy ( 2007-2012). In October 2009 
the Ministry launched the Innovation investme nt initiative, which focuses on marketing 
products that emerge from research, bu ilding on the EU-Egypt Innovation Fund. This 
Initiative is a new funding inst rument with a total budget of some EUR 2 million to exploit 
opportunities for investment in innovative R& D-based products or services by Egyptian 
Research Centres affiliated to the Ministry of Scientific Research. 
Egypt significantly increased the participatio n of Egyptian researchers in the European 
framework programme for research (FP7), also thanks to the setting up of a network of 
National Contact Points. Three new thematic National Contact Points were appointed for 
Energy, Environment and Science in Society, bri nging the total number of Focal Points to 42. 
The total number of Mediterranean partner countr ies' applicants in FP7 since its start until end 
2009, was some 1,600. Egypt is the Mediterranean  country with the highest number of 
applicants - 464, of which 59 we re successful in submitting a proposal, rece iving a total 
contribution of about EUR 3.4 million. H ealth, Environment, Food, Agriculture & 
Biotechnologies and ICT are the thematic areas of  main interest. A project to further enhance 
the participation of Egyptian R&D st akeholders started in December 2007. 
EN 19   EN 7. PEOPLE-TO-PEOPLE  CONTACTS,  EDUCATION  AND  HEALTH 
Egypt continued education reforms in line with the National Strategic Plan 2007-12 
increasing budgetary resources fo r its implementation, in particular for the modernisation of 
the three-level schooling system  (early childhood, ba sic and secondary e ducation). In this 
respect, policy commitments to the reorgani sation of education as well to its fiscal 
decentralisation on a pilot basis remained cons istent and solid. The Ministry of Education 
implemented specific measures to address the quantitative gap between teacher supply and demand, definition of teacher quality and performance standards coupled with a corresponding reform of the salary structure (impleme ntation of the teachers’ cadre ). New 
curricula and the revised textbooks apply activ e learning methods a nd integrate education 
technology into teaching and learning processes.  In terms of inclusion of vulnerable groups, 
the enrolment rate of children w ith special needs increased as well as that of special schools 
providing services for students w ith learning difficulties. Similar advances were noted in the 
area of enrolment ratios for girls and out-of-sc hool children. However, significant challenges 
remain in terms of expanding institutional capacity, availability of adequate human and financial resources and retaining st akeholder support and consensus. 
The Ministry of Higher  Education  updated the Master Plan for a reform vision until 2022 
identifying amongst others, lifel ong learning, equity and access, human resource development 
and quality assurance as well as accreditation as the main foci for the period 2009-13. Egypt’s 
reforms were implemented with reference to re levant aspects of the Bologna Process, in 
particular the development of student and academ ic mobility, quality assurance and to lesser 
extent, the system of comparable degrees. The Ministry of Higher Education adopted the legal 
framework for university autonomy predicated on a gradual approach to increase flexibility and effectiveness in higher education provisi on. Work continued on enhancing equity and 
transparency by developing standard approaches  for university admission tests including the 
planning of e-tests by 2014. Work on a national qua lifications’ framework with references to 
the European Qualifications Framework made  progress but would benefit from enhanced 
cooperation with all main  sector stakeholders. 
The General Authority for Literacy and Adult Education implemented the National Plan for 
Adult Literacy focusing on integrating l iteracy, adult educatio n and school drop-out 
prevention measures in a comprehensive and fl exible approach in cooperation with civil 
society and community-based organisations. Il literacy has been reduced to only 7% in 
Damietta governorate, serving as a viable m odel in this regard. Retaining active community 
participation will be key to securing success of anti-illiter acy programmes.  
In the area of technical education and  vocational training , an Inter-Ministerial Group 
including representatives from si x Ministries launched a 25 year strategy to reform the whole 
system. The strategy will be implemented over five  stages until 2032, the first of which covers 
the years 2009-12 and through its respective ‘pil lars’ will address among other priorities, 
systemic reorganisation and clarification of  mandates, development of a job-market 
information system, quality enhancement and public  awareness. In this respect, added efforts 
will be required to begin addressing the se rious mismatch between training content and 
delivery and labour-market need s. The TEVT programme is a key catalyst in promoting 
sector reform. In July 2 009, the European Training Founda tion published a study on women 
and work in Egypt, examining the barriers  and opportunities for women‘s training and 
employment with a focus on the touris m and information technology sectors. 
EN 20   EN Egyptian students and scholars continued to benefit from Erasmus Mundus scholarships, 
including 139 mobility grants. Egyptian universities and higher education institutions participated actively in second Call for Proposal s under Tempus IV, resulting in the selection 
of six projects. Through the introduction of di fferent concepts and themes of the Bologna 
Process, Tempus acted as one of the main ca talysts for the modernisation and reform of 
higher education. Egyptian universities are enc ouraged to participate in the Jean Monnet 
programme. 
The National Council for Youth  (NCY) implemented a series of empowerment programmes 
across all governorates on civic education and participation, youth parliament and dialogue, 
youth camp development and volunteering as well as  targeted actions in  support of family 
planning and against female genital mutilation in  remote areas. In 2009, particular focus was 
placed on developing ‘digital citizenship’ for young people through wo rking with NGOs to 
provide improved and safer youth internet conten t as well as on outreac h activities to rural 
areas. Egyptian young people benefitted from exchanges and voluntary service actions under the Euro-Med Youth III programme as well as under Youth in Action. 
In the area  of culture, Egypt participated actively at re gional level in the new Euro-Med 
Heritage IV  programme with involvement in three projects covering areas such as the 
preservation of the diversity of  written heritage, promotion of intangible cultural heritage in 
the context of the 2003 UNESCO Convention on the Safeguarding of Cultural Heritage and 
sustainable development of the cultural specific ity of the Siwa oasis. In the context of 
cooperation with the EU, work be gan inter alia on a project to enhance the cultural action of 
Bibliotheca Alexandrina, focusing on increasing access to culture and cultural activities as a 
means of development. Egyptian cultural organi sations participated in the Call for Proposals 
of the 2009 ENP Special Action under the Culture Programme. 
Egypt continued reform in the health sector by further rolling out the “Family health model”. 
The EU continued providing substantial assist ance to underpin the reform. The aim of the 
reform remained universal coverage, financial sustainability and enhanced quality of 
healthcare. Egypt further expanded, on the basis of the above model, the number of primary 
care “Family health units” in the governorates. The country worked further on a draft health 
insurance law and launched a pilot project on  health insurance management in the Suez 
governorate. In April 2009, the Parliament adopt ed the Law for the care of mental patients. 
Egypt set up an Inter-ministerial Committee to coordinate and monitor the implementation of 
the National Preparedness Plan for Pandemic Infl uenza. On this basis,  Egypt took several 
measures to combat influenza A (H1N1) in cluding by increasing surveillance, quarantine 
measures and drugs stockpiling. In the contex t of the influenza A (H1N1) epidemic, the 
European Commission proposed, in June 2009, to  establish communication channels with 
Egypt for the exchange of epidem iological information in the case of health  crisis situations. 
In October 2009, Egypt participated in the newly established EU enlarged health information 
committee. Egypt pursued participation in the ‘Episouth’ network on communicable diseases 
for the EU, Mediterranean and Balkan countries.  
8. F
INANCIAL COOPERATION – 2009  KEY FACTS AND FIGURES  
The ENPI envelope for Egypt under the Na tional Indicative Programme 2007-2010 is EUR 
558 million. The programme is geared towards supporting the achievement of key policy objectives as outlined in the EU-Egypt Action Pl an and pursues three priorities: political 
reform and good governance; competitiveness and productivity of the economy, and socio-
economic sustainability of the development process. 
EN 21   EN The implementation of the measures covered by the 2007 and 2008 Annual Action 
Programmes is underway. In  the Education Sector , the National Strategic Plan is being rolled-
out to improve the quality and access to educa tion with most of the major system reforms 
advancing, particularly those ta rgeting school-based reform, refo rm of the civil service and 
modernisation of schooling. In the transport sector  the reform programme is at an early stage 
with many steps aimed at benchmarking and analysing the existing  situation. Twinning 
operations are proceeding in the areas of mari time safety, postal ma nagement and tourism 
among others. Other programmes from 2007 and 2008 include a Waste Wate r project, as well 
as support to Good Governance,  Human Rights and Civil So ciety which are now just 
commencing. 
In 2009, the European Commission continued to support Egypt with EUR 140 million of 
assistance. The 2009 Annual Action Programme  (AAP) focused on supporting reforms in 
health sector, in particular by improving prim ary health care for the poorest members of 
society through a EUR 110 million reform support programme. In addition, an 
environmentally sustainable rural developmen t programme (EUR 10 million) and further 
twinning projects (EUR 20 million) are planned. 
An indicative financial envelope of EUR 449. 3 million will be available to support co-
operation activities in Egypt in period 2011-2013, based on a Eu ropean Commission decision 
of March 2010. 
In addition to the bilateral allocation, Egyp t also benefited from cooperation activities 
financed under the ENPI multi-country and regional programmes, as well as horizontal thematic programmes such as the European Instrument for Democracy and Human Rights (EIDHR) and the Non-State Actors and Local  Authorities in Development (NSA/LA). 
Egypt also participates in the Cross-Bord er Cooperation (CBC) Mediterranean Sea Basin 
programme (EUR 173.6 million for the whol e programme in the period 2007-13). The 
priorities of the programme are: social-ec onomic development; renewable energy; cultural 
dialogue and local development.  
Under the Neighbourhood Investment Facility (N IF), two projects in Egypt were being 
implemented in 2009, respectively in the environment and energy  sectors. These projects are 
expected to leverage around EUR 440 million in loans from the European Finance Institutions. The European I nvestment Bank signed lending operations in 2009 for EUR 130 
million, of which EUR 120 million are being linked to NIF projects. 
Other EU Instruments complement the ENPI assi stance package, such as the NSCI (Nuclear 
Safety Cooperation Instrument) strengthening the capabilities of E gypt Atomic Energy 
Authority (EAEA) and its National Centre for Nuclear Safety and Radiation Control (NCNSRC) by linking it to EU nuclear regulatory authoritie s (please see also chapter on 
energy). 
In 2009, the EU Delegation ensure d the coordination of assist ance activities within the 
Development Partners Group (DPG ) and took an active part in the "Cairo Agenda for Action 
on Aid Effectiveness" focusing on Accra and Pari s principles. Within the ENP framework, the 
EU Delegation is also strengthening coordi nation and division of labour between Member 
States through careful monitori ng of aid projects and regular updates of the ENP Action Plan 
matrix, and already implements NIF projec ts together with other important donors: Agence 
Française de Développement , KfW Bankengruppe  and the EIB.