Brussels: The European Commission has taken a significant step in its ongoing partnership with Jordan by proposing a new Macro-Financial Assistance (MFA) operation valued at up to £500 million. This initiative aims to address Jordan's external financing requirements, support fiscal consolidation, and facilitate the implementation of structural reforms, ultimately fostering employment, economic growth, and investment in the country.
According to European Union, today's proposal is intended to complement the fourth MFA programme for Jordan, which was approved by the European Parliament and the Council in April 2025. This previous programme, amounting to £500 million, is scheduled for disbursement over the period from 2025 to 2027. Combined, these two operations will bring the total MFA support to Jordan to a substantial £1 billion. Since 2014, past MFA programmes totaling £1.08 billion have played a crucial role in stabilizing Jordan's economy, particularly in the wake of the COVID-19 pandemic, and have been instrumental in driving transformative reforms.
The new assistance package will come in the form of long-term loans on concessional terms, with three disbursements contingent upon the implementation of agreed policy commitments. These commitments will be detailed in a Memorandum of Understanding between the EU and Jordan, aligning with the reform priorities set out in the ongoing fourth MFA. Both programmes will be disbursed concurrently and will require positive assessments under Jordan's IMF-supported programme, as well as adherence to democratic principles, the rule of law, and human rights. Policy conditions are expected to focus on areas such as public finance management, tax administration, labour market and social policies, anti-corruption, governance reforms, and measures related to the energy sector and business environment.
The MFA is part of the EU's broader engagement with neighbouring countries, serving as an exceptional crisis response mechanism for those experiencing severe balance-of-payments issues. This initiative is further complemented by EU bilateral cooperation under the Neighbourhood, Development and International Cooperation Instrument-Global Europe (NDICI-GE).
The proposed MFA operation for Jordan comes amidst increased regional instability and an uncertain global context. The EU's support, including the MFA programmes, assists Jordan in addressing socio-economic challenges stemming from regional turmoil, such as the Syrian refugee crisis and the ongoing conflict in Gaza. Since 2011, the EU has mobilised roughly £4 billion in support of Jordan, combining bilateral assistance, humanitarian aid, and concessional financial instruments. This support aligns with the EU-Jordan Partnership Priorities and the EU-Jordan Strategic and Comprehensive Partnership, reflecting shared values and promoting cooperation in key reform areas.