Commission proposes further €500 million in Macro-Financial Assistance to Jordan building on our long-standing strong relationship

This article is brought to you in association with the European Commission.

The European Commission has adopted today a proposal for a new Macro-Financial Assistance (MFA) operation to Jordan, worth up to €500 million.  This is a milestone for our long-standing relationship with Jordan as it delivers on the commitments outlined in the Strategic and Comprehensive Partnership approved earlier this year. This funding will support the country’s external financing needs, contributing to ongoing fiscal consolidation, and sustaining the implementation of structural reforms. In doing so, the EU seeks to help Jordan advance its reform agenda, fostering employment, economic growth, and investment.

Today’s proposal will complement the fourth MFA programme to Jordan, approved by the European Parliament and the Council in April 2025, amounting to €500 million to be disbursed over 2025-2027. Together, these two operations bring the total MFA support to Jordan to €1 billion. Past MFA programmes to Jordan, amounting to a total of €1.08 billion since 2014, have helped the country in the context of the COVID-19 pandemic and supported overall macroeconomic stability, becoming a key driver of the implementation of transformative reforms in the country.

The assistance will be provided as long-term loans on concessional terms. The new MFA operation foresees three disbursements, each tied to the implementation of agreed policy commitments. The commitments under the new MFA will be outlined in a Memorandum of Understanding between the EU and Jordan. These will be aligned with the reform priorities set out in the Memorandum of Understanding of the ongoing fourth MFA which is expected to be signed soon. Both MFA programmes will be disbursed in parallel. Disbursements will also require positive assessments under Jordan’s IMF-supported programme, as well as continuous adherence to effective democratic mechanisms, the rule of law, and respect for human rights. The policy conditions are expected to focus on areas such as public finance management and tax administration, labour market and social policies, anti-corruption and broader governance reforms, as well as energy and business environment related measures.

President von der Leyen said:“Jordan is a key strategic partner for the European Union in the Middle East. Today’s proposal for an additional €500 million in macro-financial assistance reaffirms our steadfast commitment to supporting Jordan’s economic resilience and reform efforts. It is a concrete step in delivering on the Strategic and Comprehensive Partnership agreed earlier this year. With this support, we are reinforcing our shared ambition for Jordan to advance vital reforms strengthening its resilience and fostering inclusive growth, investment, and long-term stability for the Jordanian people. We are committed to continue this important work together.”

Next steps

The Commission’s proposal for a fifth MFA with Jordan is subject to the approval of the European Parliament and the Council.

Background

MFA is part of the EU’s wider engagement with neighbouring countries and is intended as an exceptional EU crisis response instrument. It is available to enlargement and EU neighbourhood countries experiencing severe balance-of-payments problems. The implementation of the proposed operation is further complemented by EU bilateral cooperation under the Neighbourhood, Development and International Cooperation Instrument- Global Europe (‘NDICI-GE’).

The new MFA operation proposed for Jordan comes at a time of increased uncertainty amid intensified regional turmoil, compounding an already uncertain and unstable global context.

The EU’s support to Jordan, including through Macro-Financial Assistance programmes, helps the country address the socio-economic challenges arising from regional instability, including the consequences of the Syrian refugee crisis and the spillover effects of regional conflicts, including the on-going war in Gaza. Since 2011, the EU has mobilised around €4 billion in support of Jordan combining bilateral assistance, humanitarian aid, and concessional financial instruments. This support is delivered in line with the EU-Jordan Partnership Priorities, reaffirmed at the fifteenth meeting of the EU-Jordan Association Council on 15 July 2024, and further strengthened through the EU-Jordan Strategic and Comprehensive Partnership endorsed in January 2025. These frameworks reflect shared values and promote cooperation in key reform areas, including good governance, the rule of law, human rights, social cohesion, environmental sustainability, macroeconomic stability, and a stronger business environment.