BREAKING NEWS

EU weighs aid, commercial ties with Egypt

By REUTERS

AUGUST 18, 2013 21:34

BRUSSELS - European Union governments will this week question how to best use their economic ties with Egypt to pressure Cairo's army-backed rulers into finding a peaceful compromise with supporters of deposed Islamist President Mohamed Morsi.

At stake could be a 5 billion euro ($6.7 billion) package of grants and loans promised by the EU, its member governments and international financial institutions last year, as well as various trade incentives, EU officials and experts say.

The EU's ability to exert immediate economic pressure on Cairo is limited - much of its current aid is already stopped because of inadequate democratic reforms.

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