Brussels/Amman — The European Commission has put forward a proposal to provide Jordan with up to €500 million in new Macro-Financial Assistance (MFA), deepening a partnership that European officials describe as vital for regional stability.
The plan, adopted on August 5, comes just months after the European Parliament and the Council approved another €500 million package in April. Together, the two programs would bring total EU financial assistance to Jordan to €1 billion, making the country one of the largest recipients of EU support in the region.
Support for Reforms and Stability
According to the Commission, the new package is designed to help Jordan cover its external financing needs, ease fiscal pressures, and sustain economic reforms. Funds would be delivered through long-term concessional loans in three installments, each tied to specific policy commitments.
Those commitments are expected to focus on public finance management, tax administration, labor market policies, anti-corruption efforts, governance reforms, and improvements in the energy sector and business environment. Disbursements will also depend on Jordan’s adherence to democratic principles, rule of law, and human rights, as well as positive assessments under the country’s ongoing IMF-backed program.
A Strategic Partner in the Middle East
European Commission President Ursula von der Leyen described Jordan as a “key strategic partner” for the EU.
“Today’s proposal reaffirms our steadfast commitment to supporting Jordan’s economic resilience and reform efforts,” she said. “With this support, we are reinforcing our shared ambition for Jordan to advance vital reforms, strengthen its resilience, and foster long-term stability.”
Longstanding EU Support
Since 2014, the EU has already provided Jordan with €1.08 billion in MFA, helping the country navigate the COVID-19 pandemic and stabilize its economy. Beyond macro-financial assistance, the EU has mobilized about €4 billion in overall support since 2011, combining bilateral aid, humanitarian assistance, and concessional financing.
Brussels frames this engagement as part of its broader Strategic and Comprehensive Partnership with Jordan, endorsed in January 2025, which builds on earlier commitments to support good governance, economic stability, social cohesion, and sustainable development.
Next Steps
The proposal for this fifth MFA program must still be approved by both the European Parliament and the Council before disbursements can begin. If confirmed, the funds will be released in parallel with the €500 million package approved earlier this year.
European officials argue that the move comes at a critical time, as Jordan grapples with the economic fallout of regional instability — including the Syrian refugee crisis and the ongoing war in Gaza — while seeking to push forward domestic reforms aimed at growth and job creation.
Source: European Commission
