G7 to the rescue?

The recent announcement by the G7’s Deauville Partnership that it will soon deliver on its earlier promise of a $20 billion ‘Arab Spring’ package to Egypt, Morocco, Tunisia, Libya and Jordan, could not have come at a better time. Given the turmoil in global financial markets and the region’s own domestic political troubles, most of these countries will struggle to meet their external financing needs this year without outside assistance. We’ve been here before of course. But given the risk of an imminent financial crisis in important countries, such as Egypt, international help may be forthcoming this time.