Egypt’s budget, UAE welfare, Lebanon election

Egypt’s draft budget reiterated the government’s commitment to keeping fiscal policy tight but, with debt servicing costs rising sharply and the currency set to weaken, there are increasing concerns over Egypt’s debt dynamics. Elsewhere, the UAE unveiled an unemployment insurance scheme this week that will benefit both Emiratis and non-Emiratis as officials seek to ward off competition for the country's role as the region's financial and trading hub. Finally, elections in Lebanon this weekend are unlikely to provide fresh impetus to efforts to secure IMF financing. EM Drop-In (17^th May): Do current EM debt strains point to a repeat of the kinds of crises seen in the 1980s and 1990s? Join our special briefing on EM sovereign debt risk on Tuesday. Register now.