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With the US giving up on various types of engagement in assistance worldwide, the EU is trying to step in, especially since in many cases, the legal framework is already there. The EU, in principle, is focusing on the most relevant regions to European security and its relationships based on democracy and rule of law, seen as basic principles for good and mutually beneficial partnerships.
The Council of the EU officially adopted a decision to provide up to €500 million in macro-financial assistance (MFA) to Jordan.
The EU assistance is meant to bolster Jordan’s economic stability and support its ongoing reform agenda in the face of mounting internal and external challenges. It will help the country meet its outstanding external financing needs while creating the fiscal space necessary to sustain reform efforts.
The assistance, provided in response to Jordan’s request for additional support in October 2023, will be available for two and a half years and will be provided in the form of concessional loans, granted at terms that allow Jordan to repay them during a long period, including a possible grace period. Loans will be disbursed in three instalments.
The new support for Jordan will be provided under conditions outlined in a memorandum of understanding (MoU) between Jordan and the European Commission. The disbursement of instalments will be contingent on Jordan’s progress with the reforms specified in the MoU. Additionally,
Jordan must continue to uphold democratic mechanisms, the rule of law, and human rights throughout the programme. Monitoring will be conducted by the Commission and the European External Action Service (EEAS).
The decision will enter into force on the third day after publication in the Official Journal.
Since 2013, the EU has provided Jordan with €1.08 billion through three previous macro-financial assistance (MFA) programmes, with the latest MFA-III programme (2020-2023) offering €700 million to support key reforms in public finance management, social policies, and governance.
The EU and Jordan have been linked by an Association Agreement since 2002. In 2022, they signed the Partnership Priorities, which aim to strengthen cooperation further and will guide the partnership until
2027. The EU’s support to Jordan assists the country in mitigating the impact of the war in Syria and the resulting large number of refugees. Overall, the EU has already mobilized around €4 billion for Jordan
since the beginning of this crisis in 2011.
