Luxembourg, 14 April 2025
The EU Council officially adopted a decision to provide up to €500 million in macro-financial assistance (MFA) to Jordan.
The EU assistance will 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).
Next steps
The decision will enter into force on the third day after publication in the Official Journal.
Background
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 mobilised around €4 billion for Jordan since the beginning of this crisis in 2011.
- Decision of the Council and the EP
- Council decision on macro-financial assistance to Jordan, 4 March 2025
- EU’s Macro-Financial Assistance (MFA)
- EU-Jordan Partnership Priorities