Can Egypt’s Economy Be Saved?

Caroline Freund encourages Egypt to institute economic reforms:

The right approach to Egypt’s economic problems would be to force it to bite the economic reform bullet now by ending wasteful expenditures, especially fuel subsidies. These cost almost half of government revenue at a time when Egypt’s budget deficit is more than 10 percent of gross domestic product and growing, and they encourage energy consumption, especially among wealthier Egyptians, while doing little to help the most vulnerable. Smart budget rebalancing would cut the subsidies, add more to the social safety net for the poor, and reduce the fiscal deficit.