Egypt, South Korea to Cooperate in Transportation, Railway Sectors

The Egyptian and South Korean officials during their meeting. (Egypt Ministry of Transportation)
The Egyptian and South Korean officials during their meeting. (Egypt Ministry of Transportation)
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Egypt, South Korea to Cooperate in Transportation, Railway Sectors

The Egyptian and South Korean officials during their meeting. (Egypt Ministry of Transportation)
The Egyptian and South Korean officials during their meeting. (Egypt Ministry of Transportation)

Egypt discussed with South Korea on Friday ways of supporting and developing joint cooperation in the fields of railways, metro and sea transport.

They also reviewed other projects in progress between them.

Egyptian Minister of Transportation Eng. Kamel al-Wazir met in Cairo with his South Korean counterpart Noh Hyeong-ouk, who is currently on an official visit to the North African nation.

During the meeting, the ministers tackled the projects underway between Egypt and South Korean in the different fields of transport, especially as regards to upgrading the signaling system on the 118 km Naga Hammadi-Luxor line and the 224 km Luxor-High Dam line.

The two ministers also agreed to activate the agreement that was previously signed by Egypt and South Korea to locally manufacture metro train cars in Egypt, the Transportation Ministry said in a statement.

Wazir stressed that the Egyptian government places great importance on improving maritime transport, adding that a comprehensive plan has been implemented to transform Egypt into international hub for trade and logistics.

For his part, the Korean Minister underlined Seoul's keenness on increasing cooperation with Cairo in a number of sectors.

The ministers signed a memorandum of understanding to enhance cooperation in the field of railways and the public and the private sectors.

The agreement also aims at developing cooperation in signaling, communications, control systems and the renovation of railways.

The Egyptian government stressed that developing the railway network focuses on the carriages, railway, updating the traffic signal system, improving safety, installing modern equipment and training workers.

Egypt has in recent years witnessed several railway accidents.



Fitch Revises Italy's Outlook to 'Positive' on Stronger Fiscal Performance

Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights
Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights
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Fitch Revises Italy's Outlook to 'Positive' on Stronger Fiscal Performance

Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights
Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights

Global credit ratings agency Fitch on Friday revised its outlook on Italy to 'positive' from 'stable', citing recent improvements in the fiscal performance of the euro zone's third largest economy and its commitment to EU budget regulations.
The upgrade to the outlook is a boost to Prime Minister Giorgia Meloni's government and comes shortly after Rome reached an agreement with the European Commission on a seven-year budget adjustment, said Reuters.
"Italy's fiscal credibility has increased, and the 2025 budget underscores the government's commitment to EU fiscal rules," Fitch said in a statement.
The agency confirmed Italy's rating at 'BBB'.
In June, the Commission placed Italy and six other countries under a disciplinary procedure due to high budget deficits. Italy's 2023 shortfall came in at 7.2% of gross domestic product, the highest in the 20-nation euro zone.
However, last month the Italian government revised down its targets for the deficit this year and next, to 3.8% and 3.3% of GDP respectively, and said the deficit would fall below the EU’s 3% limit in 2026.
"The judgments of the ratings agencies are the result of the responsible actions of this government and they underscore Italy's credibility," Economy Minister Giancarlo Giorgetti said in a statement after Fitch's announcement.
Earlier on Friday, S&P Global confirmed its rating on Italy at 'BBB' and left the outlook at 'stable'.
RISING DEBT
Despite the narrowing annual budget deficits, Italy's debt, proportionally the second highest in the euro zone, is forecast by the government to climb from 134.8% of gross domestic product last year to 137.8% in 2026, before gradually declining.
The Treasury says the projected increase is due to costly home renovation incentives adopted during the COVID-19 pandemic, known as the Superbonus scheme.
The premium investors pay to hold Italian government bonds over top-rated German ones narrowed on Friday to around 116 basis points, the lowest level since end-2021.
Analysts said earlier this week that positive news from any of the ratings agencies due to review Italy could trigger a further narrowing of the yield spread against Germany.
Fitch said its revision to Italy's outlook was also driven by "signs of stronger potential growth and a more stable political context."
The Italian economy expanded by 0.7% in 2023, and most analysts expect a similar modest growth rate this year, slightly below the government's official 1% target.
Meloni, who took office two years ago, retains high approval ratings and opinion polls show her right-wing Brothers of Italy party is comfortably the largest in Italy, with popular support of almost 30%, up from the 26% it won at the 2022 election.
Italy faces further credit rating reviews by Moody's, DBRS and Scope Ratings over the next few weeks up to No. 29.