The annual progress report on partner country achievements within the framework of the European Neighbourhood Policy is out. What has Egypt accomplishment so far? Despite a difficult context in 2008 marked by political and economic challenges, many achievements have been registered by the partner countries in key areas such as increased trade and deeper cooperation on research and innovation. Sherine Nasr reports on the latest annual progress report. As an active European Neighbourhood Policy (ENP) partner, Egypt made progress in various economic areas with the EU during 2008. Trade negotiations on agricultural products, processed agricultural goods and sea food products were concluded in June while negotiations on the libralisation of services are still ongoing, alongside negotiations concerning dispute settlement mechanisms. "The partnership between Egypt and the European Union continues to grow stronger, as evidenced by our increasingly active cooperation across a broad range of issues of mutual interest," said Benita Ferrero-Waldner, commissioner for external relations and neighbourhood policy, commenting on the report. During 2008, the EU continued to be Egypt's main trading partner. Egypt's exports rose by 13.1 per cent while EU exports to Egypt increased by 22.2 per cent. The total trade volume with the EU in 2008 is estimated at 20.66 billion euros. On the energy level, Egypt and the EU signed a Memorandum of Understanding on a strategic partnership on energy in December. Key areas for cooperation include energy market reforms, promotion of renewable energy and energy efficiency as well as the development of energy networks. Moreover, a nuclear safety cooperation programme will be developed in 2009 to support capacity building of the Egyptian Atomic Energy Authority and its Nuclear Radiation and Regulatory Authority. Egypt remains one of the main beneficiaries of EU support in the region. Under the European Neighbourhood Partnership Instrument (ENPI), a total of 558 million euros, and an additional 10 million euros for education have been allocated for the period of 2007 to 2010 to support Egypt's reform process. In 2008, Egypt received 149 million euros to strengthen national efforts to improve good governance in public administration, to introduce a policy support programme aimed at improving access and quality of transport, to further upgrade the education system and to provide investment financing and technical assistance to the Improved Water and Wastewater Services Programme (IWSP). Moreover, contributions were approved in 2008 for projects in Egypt under the Neighbourhood Investment Facility (NIF), committing 10 million euros in grant support and 5 million euros in technical assistance, expected to leverage some 420.5 million euros in loans from European Finance Institutions for the IWSP and Al-Zayat Wind Farm project. In the area of institutional capacity building, Egypt continues to make use of the Twinning Instrument which provides study trips and experts' workshops to share the EU's experience in a wide range of policies. A total of 14 twinning projects are currently being implemented, of which 10 were launched during 2008. Twinning projects cover sectors such as transport, tourism, postal services, telecommunications, statistics and environment.
