Egypt’s benchmark stock index plummeted 4.6 percent to its lowest in almost five months on Tuesday. The fall was triggered by fears of the potential political vacuum following Egypt’s un-ceremonial passage into democracy, which has cast a bleak shadow on the country’s monetary interests.
From revolution to democracy, Egypt is criticised for its inability to reach a democratic consensus which has set off a red flag within the international community. Egypt remains in limbo after the Muslim Brotherhood claimed victory in a presidential election while the generals who took over from Hosni Mubarak decreed it was they who would remain in power legislatively.
These factors play a leading role in offsetting EU and US aid and pledges to a geo political hub once known for stability now a region of lawless and sporadic decrees. The US has always been Egypt’s financial sponsor, but the US administration has reiterated sharp messages regarding the military’s junta, who until this point have not kept their promise in handing over authority to the civilian rule.
Whether Europe or America decides to purge foreign aid, all remains unclear till a new President is in place from a legislative and judicial standing point. Earlier this year, Egypt’s military junta accused, a total of 43 foreign and Egyptian activists, including the son of the US Transportation Secretary Ray LaHood, accused of receiving illegal funds and carrying out political activities in the country. The case, which involves American employees of 4 US-based Non-Governmental Organizations (NGO) has caused a crisis in US-Egypt relations as Egyptian authorities called it US meddling in the country’s internal affairs and ignited further negotiations in Washington regarding Egypt’s long term status of receiving foreign aid.