The European Commission and Jordan have signed a Memorandum of Understanding to launch the implementation of €500 million in Macro-Financial Assistance (MFA) to Jordan. This programme forms part of the broader EU-Jordan Strategic and Comprehensive Partnership adopted earlier in 2025, aimed at supporting Jordan’s economic stability, growth, long-term resilience, and structural reforms. The fourth MFA, approved by the European Parliament and the Council in April 2025, will be disbursed over a period of up to two and a half years, contingent on progress in implementing the agreed reform agenda and policy measures outlined in the Memorandum. This funding will help Jordan meet part of its external financing needs while supporting critical economic reforms.
The agreed reform measures focus on strengthening Jordan’s public finance management, governance and anti-corruption frameworks, social protection and labor market policies, green transition initiatives, and business environment enhancements. The release of funds is also dependent on Jordan maintaining political pre-conditions, ensuring reforms are implemented effectively and sustainably.
Commission President Ursula von der Leyen emphasized the strategic partnership between the EU and Jordan, highlighting that the €500 million investment aligns with Jordan’s reform agenda, supporting sustainable finance, green energy, and anti-corruption measures. She noted that the MFA package addresses both immediate economic needs and long-term prosperity, reinforcing Jordan’s stability and resilience amid regional challenges.
This agreement precedes a proposed fifth MFA, also for up to €500 million, which is pending approval by the European Parliament and Council. If approved, the total EU macro-financial assistance to Jordan would reach €1 billion, further complementing the ongoing reform agenda under the fourth MFA.
The first disbursement is expected within a month of the signature, subject to a positive assessment by the European External Action Service confirming that political pre-conditions are met and that the ongoing IMF programme demonstrates a positive track record. Subsequent instalments will depend on the timely and effective implementation of agreed policy measures. The European Commission and the European External Action Service will continue to closely monitor progress in coordination with international partners, ensuring that the assistance aligns with Jordan’s reform commitments and EU partnership objectives.
Related Posts
