Reforming Economic Reforms: Europe and the Ongoing Transformation in Mediterranean Countries

As revolts spread throughout Mediterranean countries, the EU Mediterranean policy was experiencing a phase of great uncertainty. However, the ongoing transformation in Mediterranean countries would have deep political and economic consequences to which EU policies had to adapt. While political modernization would overshadow economic issues, the latter would play a central role in ensuring the sustainability of the transformation process. Moreover, Europe’s evolving cooperation with Mediterranean countries would be built upon the EU’s existing economic instruments of cooperation. Egypt was turning against the economic reforms of the last decade. This could trigger the adoption of new populist economic policies, with possible long-term negative consequences. The EU could implement new tools for financial assistance helping Egypt and Tunisia to 'reform their economic reforms.' While preserving past economic reforms, these new tools should be modified to align their objectives more closely to the new political situation.