Prime Minister Ahmed Nazif has admitted that the Egyptian economy would be affected by the global economic crisis. In his first periodical statement before the People's Assembly [Egypt's lower chamber of parliament], he said the crisis would cut growth rates, lead to a shortage of exports and foreign investments, and reduce national income from the Suez Canal and tourism. He talked about the series of measures of the government to deal with this crisis. He said it would raise public spending by some LE 15 billion over the next six months - until the end of the current fiscal year - to carry out urgent projects requiring much workforce; it would devote LE 10.5 billion to increase investments in sanitation, roads and bridges, to make the railway system more efficient, enhance the infrastructure of eastern Port Said Port, make Red Sea ports more capacious, build health units and schools, and carry out local development projects nationwide. He said the government would also allocate LE 2.8 billion to shore up industry and exports and cut tariffs on intermediate commodities and capitals by between LE 1.5 billion and LE 1.7 billion in order to encourage investments. Meanwhile, a row broke out between People's Assembly's Speaker Fathi Sorour and the Muslim Brotherhood (MB) MPs, as they objected to their block leader not being given the floor. "Form a party and you'll be given the floor" replied Sorour. The MB block vice-leader, though, said: "We hoped the PM statement would also touch on the plunder of Egypt's wealth through gas exports to Israel.
