US plans aid package to stabilise Egypt

With anti-government protests threatening additional change across the Middle East, the Obama administration and its allies have drawn up plans to help Egypt's new government tide over the transition phase with an aid package.
 
US officials, in their bid to demonstrate they are helping to establish stability in a country that has long been the bulwark of American interests in the region, are soliciting contributions to an emergency financial package for Egypt.

This is being done on fears of further strains overtaxing the economy and jeopardising the reform effort sparking a new round of chaos.

In the four days since president Hosni Mubarak's resignation in the face of a widespread public unrest, US officials who worked to bring about the regime change have been busy putting together a package that would probably total several hundreds of millions of dollars.

This also includes funds to help build political parties and other institutions, according to US and European diplomats. The US aid to Egypt currently totals about $1.5 billion per year, of which the military, the most respected institution in the nation, gets the majority share.

Though public anxiety over the country's floundering economy, with high unemployment and high inflation, was thought to be one of the causes behind the 18-day uprising that ended president Mubarak 30 year reign, analysts say Egyptians may be overly optimistic in expecting rapid economic improvements.

The aid effort comes at a particularly difficult time for the US and many of its allies, who are already struggling with severe austerity budgets. At the same time, the Obama administration is trying to prevent Republicans from making heavy cuts to foreign aid.