Providing macro-financial assistance to Jordan

The European Parliament adopted by 585 votes to 34, with 45 abstentions, a legislative resolution on the proposal for a decision of the European Parliament and of the Council on providing macro-financial assistance to the Hashemite Kingdom of Jordan.

Parliament adopted its position at first reading, taking over the Commission's proposal.

To support Jordan's economic stability and cover the country's residual financing needs over the operation's availability period, the Commission proposes a new macro-financial assistance (MFA) operation of up to EUR 500 million in loans, in addition to the previous MFA of EUR 500 million.

This new MFA assistance is designed to address pressing economic challenges, including high public debt, a structurally elevated budget deficit (5.6% of GDP in 2024, an increase compared to 2023), and persistent external deficits (averaging around 6.5% of GDP over the last five years). It also aims to mitigate the fiscal constraints exacerbated by recent crises, such as the COVID-19 pandemic and regional instability.

The proposed MFA would complement the resources allocated to Jordan under the existing operation adopted by the European Parliament and the Council on 14 April 2025 under Decision (EU) 2025/793 on providing MFA to the Hashemite Kingdom of Jordan amounting to EUR 500 million in loans to be disbursed during the period 2025–2027.

The political and economic conditions necessary for granting the proposed MFA are fulfilled, as confirmed by the Commission’s evaluation of Jordan’s current situation. The loan will be provided under the External Action Guarantee with a provisioning at a rate of 9%, amounting to EUR 45 million to be programmed under the NDICI–Global Europe instrument.

The MFA will have a validity period of two and a half years following the entry into force of the Memorandum of Understanding (MoU). The disbursement of funds will occur in three tranches, contingent upon the full and timely implementation of the agreed economic policies outlined in the MoU. These policies include ambitious reforms in key areas such as public governance, fiscal management, and anti-corruption efforts, ensuring that EU support contributes to Jordan’s long-term economic resilience and stability.

A precondition for granting the Union’s macro-financial assistance will be that Jordan respect effective democratic mechanisms, including a multi-party parliamentary system, and the rule of law, and guarantee respect for human rights.