The Palm Beach Post

Egypt’s president facing dissent over rising prices

- By Sudarsan Raghavan, Heba Farouk Mahfouz

CAIRO — Egyptian President Abdel-Fattah el-Sissi is confrontin­g one of the toughest challenges he has faced since seizing power five years ago, as rising prices linked to economic austerity measures take a toll on his core middle-class supporters.

While the economy is growing and winning applause from Western donors, Sissi’s austerity program is squeezing a broad spectrum of Egyptians and fueling heightened criticism of his rule.

In recent weeks, cost-ofliving increases have triggered public outrage. Steep subsidy cuts have driven up prices for fuel, cooking gas and electricit­y. The government has also introduced a new value-added tax and floated the currency, which has subsequent­ly lost value. A hike in fees for using the metro sparked street protests.

Thousands of Egyptians have taken to Twitter and other social media demanding that Sissi step down, voicing their frustratio­ns under the hashtag #Sissi-Leave.

Sissi acknowledg­ed in recent televised speeches that the economic reforms are tough on the population, even as he insisted that the country is on the right track.

“The path of real reform is difficult and cruel and causes a lot of suffering,” Sissi said in a June 30 address commemorat­ing the anniversar­y of the protests that led to his seizure of power in a military coup. “But there is no doubt that the suffering resulting from the lack of reform is much worse.”

In exchange for a $12 billion loan from the Internatio­nal Monetary Fund, Sissi agreed in 2016 to put in place a series of austerity measures. These included reducing government subsidies for fuel and other products and services, as well as devaluing the Egyptian pound by more than half in November of that year.

Last week, the IMF praised Egypt’s efforts in a review, projecting that economic growth would reach 5.2 percent this year and 5.5 percent next year.

But that expansion is accompanie­d by a dramatic rise in prices at a time when poverty and unemployme­nt remain high. For long-suffering Egyptians, such as Nancy Attia, inflation translates into daily frustratio­ns and dreams deferred.

Attia postponed her wedding, not because of illness or last-minute jitters, but due to rising prices. In Egypt, tradition dictates that a couple live together in their own home after marriage, but that arrangemen­t has become increasing­ly unaffordab­le.

“Rent, furniture, electronic devices, everything has doubled in price, or even more. Every little step that drove us closer to our beautiful dream became harder and harder,” said Attia, 33, an unemployed journalist. Marriage now seems out of reach. “We can’t even set a date,” she said.

 ?? SIMA DIAB / BLOOMBERG ?? Egypt’s currency has lost value, fuel prices are up and the cost of living is skyrocketi­ng. Middle-class Egyptians are blaming President Abdel-Fattah el-Sissi and his austerity program.
SIMA DIAB / BLOOMBERG Egypt’s currency has lost value, fuel prices are up and the cost of living is skyrocketi­ng. Middle-class Egyptians are blaming President Abdel-Fattah el-Sissi and his austerity program.

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