Strasbourg, 1 April 2025
On Tuesday, MEPs approved two proposals granting Jordan and Egypt loans worth €500 million and €4 billion respectively.
The macro-financial assistance (MFA) for Egypt was adopted by Parliament by 452 votes in favour, 182 against and 40 abstentions. The MFA for Jordan was passed by 571 votes in favour, 59 against and 46 abstentions.
Given Egypt’s critical economic and financial situation and its role as an important stabilising presence amid geopolitical tensions in an increasingly volatile region, the Commission proposed to support the country on 15 March 2024 with macro-financial assistance in the form of loans worth up to €5 billion. These break down into a short-term loan of up to €1 billion – already disbursed at the end of 2024 – and another, regular, loan of up to €4 billion to be disbursed in three instalments. Parliament approved the proposal.
For Jordan this is the fourth MFA effort by the EU since 2013. It should help cover the country’s residual financing needs, support its structural reforms, and shore up its fiscal consolidation efforts. In January 2025, the Commission announced an additional financial package to help Jordan deal with existing financial and other challenges.
A pre-condition for the EU granting financial assistance shall be that Jordan respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees for respect of human rights.
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Rapporteur Celine Imart (EPP, France), said:
“This vote underlines Parliament’s support for our partners. The money for Jordan can be delivered quickly, and Parliament will enter into negotiations with member states on the proposal for Egypt with a strong mandate to make a swift agreement. Helping our partners means promoting European interests in an unstable region.”
Next steps
The MFA package for Jordan now needs to be formally approved by the Council before it can take effect. On financial aid for Egypt, negotiations between Council and Parliament are expected to start soon.
Background
These loans are part of financial support packages concluded with EU partner countries struggling with financial, economic, societal challenges, to help with structural political and economic reforms.
Greens EFA: Commission’s blank check to autocratic Egypt undermines EU’s authority
Today, the European Parliament has just voted on the Commission’s proposal on Macro Financial Assistance (MFA) totalling 4 billion EUR to Egypt, as part of a wider package of EU support for the country worth up to 8 billion EUR. The Commission has removed conditionality connected to progress on democracy, human rights and the rule of law in the rollout of MFA for Egypt. The EPP group formed a coalition with the extreme right to even further weaken the Commission proposal.
MEP Vicent Marzà Ibàñez, shadow rapporteur on the file in the INTA Committee, comments:
“The Commission cannot throw democracy and human rights to the wind. Handing tax payers’ money to a military regime without any regard for the rule of law undermines the EU’s standing in the world, is tantamount to endorsing autocracy and will fall short of improving Egyptian people’s economic situation.
“The Egyptian authorities routinely crush all forms of opposition, with the widespread use of arbitrary detention and unfair trials. The Commission cannot just close its eyes and ears to the abuse of power. The delivery of EU financial support must be conditional on clear progress on democracy, human rights, and the rule of law; not only in Egypt, but for all recipients of Macro Financial Assistance. To drop these basic pre-conditions sets a very dangerous precedent. This money should be tied to economic reform that reduces inequalities and poverty in the country and not just to balance the books.”
MEP Tineke Strik, standing rapporteur for Egypt and rapporteur for the opinion on the file in the AFET Committee and, added:
“The EU must be a force for democracy and human rights in the world and we cannot allow third countries to enrich themselves and enhance their grip on power with EU funds. Despite existing EU rules requiring beneficiaries of EU money to uphold human rights, democracy, and the rule of law, the Commission has thrown these rules to the wind. With this violation, it betrays ordinary Egyptians and leaves human rights defenders and all those who advocate for a stronger democracy and rule of law, out in the cold.
“It’s quite clear that the Commission is laying the groundwork for a dodgy deal with Egypt on migration. If the Commission is willing to give up on human rights and democracy at this stage, then the EU will have no leverage or guarantees for proper access to protection that refugees in Egypt are in desperate need of.
The EU must stand firm in its defence of human rights in any deals it makes with third countries, no matter how desperate the Commission is to please the extreme right and show toughness on migration.”
Source – Greens/EFA