Shopping for help

Egyptian officials are currently engaging in diplomatic activities in an attempt to revive economic support for Egypt. 

Foreign Minister Nabil Fahmy met with CEOs of companies with investments in Egypt on Monday in Rome, to encourage them to increase collaborations with the country. 

A statement from the Foreign Ministry spoke of the need for stronger economic collaboration between the two countries, and Egypt's commitment to easing investment procedures for Italian entities. Italy is considered a strategic economic partner for Egypt in Europe with some 1 billion euros of trade volume between the two countries and hundreds of Italian investments in Egyp, particularly within the fields of banking, industry, oil and tourism. 

Meanwhile, Prime Minister Hazem al-Beblawi arrived in Saudi Arabia on Tuesday, according to the state-run Middle East News Agency, for a two-day visit on bilateral relations and economic and commercial collaborations. The prime minister is being accompanied by the ministers of investment, planning, transportation, oil and housing. 

Saudi Arabia was expected to give Egypt US$4 billion, in the form of a Central Bank deposit as well as petroleum products, according to the state run Al-Ahram last week. The package is to be discussed during Beblawi's visit. 

A report by Reuters published Tuesday indicates that with no long-term plans in hand to increase its income, the government may need to resort to reducing expenditures. Currently, the government is depending on two surplus packages, each worth US$4.3 billion, which have been possible through financial support from Saudi Arabia, the Emirates and Kuwait. 

But with the recent implementation of the minimum national wage of LE1200 for some 4.9 million government employees, the government would need to spend an additional LE18 billion, which could lead to possible a budget deficit of LE200 billion, according to Reuters.