GO-EuroMed Macroeconomic Policy Standing Group
- Egypt’s Role in Euro-Mediterranean Governance -
In order to provide an Egyptian perspective on the Euro-Mediterranean Partnership (EMP) economic reform process, the GO-EuroMed Macroeconomic Policy Standing Group (MPSG) has been established recently. Its aim is to consider implications of Egyptian governance as a benchmark case for economic reform in the wider south Mediterranean region. In this regard the MPSG builds on the GO-EuroMed consortium’s work on trade and investment in 2006. It will also complement research in 2007 and 2008 dealing with the challenges of regional integration and domestic reform in MENA countries as well as institutional governance strategies for the EMP during the next decade. Research will be guided by the question of whether the EMP framework is having a significant influence on domestic macroeconomic policymaking and the governance of financial markets in Egypt and other Mediterranean Partner Countries (MPCs).
As economic prosperity is a key focus of the GO-EuroMed project, the role of good macroeconomic governance represents a natural starting point to assess the sustainability of economic convergence process and integration towards the European Union.
- MPSG working paper no. 1 aims to identify key channels through which EU policy instruments set incentives for the implementation of institutional reforms in Egypt and throughout the MENA region. Issues to be raised include the incentives for governments to restrain popular expenditure policies and the coordination between the Central Bank and fiscal authorities in Egypt and other MPCs.
- MPSG working paper no. 2 aims to identify opportunities for the EU to actively support the implementation of a reform agenda for governing financial institutions and markets in the MENA. Issues to be raised include implementation strategies for financial sector governance and management of the regulatory environment. Further aspects of regional financial integration and regulatory cooperation in Mediterranean Partner Countries will be investigated.
The Macroeconomic Policy Standing Group is expected to contribute to the GO-EuroMed project’s work on sound macroeconomic governance practices in the MENA. Furthermore it aims to deliver valuable insights to the role of the EMP framework for the financial reform process, contributing to the GO-EuroMed consortium’s research into bilateral and multilateral institutional design and management strategies in 2008.
Partners and Organisational Features
The research will be carried out by Professor Mohammed Omran, Professor of Finance at Arab Academy in Alexandria in October 2007 and in December 2007 in Berlin at the Jean Monnet Centre of Excellence. Professor Omran will present his findings at the Macroeconomic Policy Standing Group Workshop in Cairo in Mai 2008.