Commission proposes further €500 million in Macro-Financial Assistance to Jordan
Commission proposes further €500 million in Macro-Financial Assistance to Jordan European Union
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The European Commission proposes new Macro-Financial Assistance to Jordan
The European Commission has today adopted a proposal for a new Macro-Financial Assistance (MFA) operation to Jordan worth up to €500 million. This financial support is an important demonstration of the EU’s partnership and solidarity with Jordan. The proposed financial assistance aims to help Jordan cover part of its external financing needs, support the fiscal consolidation effort, and support structural reform efforts, so that Jordan’s ambitious reform agenda can continue, promoting jobs, growth, and investment.
Ursula von der Leyen, Commission President, said: “Today’s proposal is a clear sign of the EU’s continued solidarity with Jordan. With up to €500 million, we will support Jordan in these difficult times of geopolitical instability. And we will help ensure that Jordan’s transformative reforms for jobs, growth, and investment can continue.”
Background
MFA is part of the EU’s wider engagement with neighboring countries and is intended as an exceptional EU crisis response instrument. It is available to enlargement and EU neighborhood 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’).
EU-Jordan relations
The EU’s support to Jordan, including through MFA programs, assists the country in mitigating the impact of the war in Syria and the resulting large number of refugees. Overall, the EU has already mobilized around €4 billion for Jordan since the beginning of this crisis in 2011. This support is provided in accordance with the EU-Jordan Partnership Priorities, as confirmed during the fourteenth meeting of the Jordan-EU Association Council on 2 June 2022. These priorities are based on common values and dialogue and promote reforms in areas such as good governance, the rule of law, human rights, social cohesion and equal opportunities for all, non-discrimination, environmental and climate protection, macroeconomic stability, and the business environment.
Quote(s)
Today’s proposal is a clear sign of the EU’s continued solidarity with Jordan. With up to €500 million, we will support Jordan in these difficult times of geopolitical instability. And we will help ensure that Jordan’s transformative reforms for jobs, growth, and investment can continue.
Ursula von der Leyen, President of the European Commission
The proposal for a new Macro-Financial Assistance operation worth up to €500 million reflects the crucial importance of our relationship with Jordan, a major partner and a key actor in the Middle East. In difficult times for the region, the EU stays committed to further support Jordan’s ongoing modernization process, its efforts to promote an inclusive and sustainable growth, and enhance resilience to economic shocks.
High Representative/Vice-President Josep Borrell
With today’s proposal, the EU shows its strong commitment to sustain its support to Jordan during these exceptional times. The assistance will help ensure that Jordan keeps the reform momentum in line with its economic modernization vision. It will also help to stimulate inclusive and sustainable growth to the benefit of the people in Jordan.
Paolo Gentiloni, Commissioner for Economy
Today’s proposed new program for macro-financial assistance to Jordan is another sign of EU’s continued support to a close partner, currently facing increasing regional challenges. It is a key addition to the large assistance package of around EUR 4 billion already provided since 2011. The upcoming ‘EU-Jordan Business Forum’ to be held in Amman in June is another mark of our efforts to support Jordan’s economy by boosting EU investments and increasing Jordanian exports into the EU.
Olivér Várhelyi, Commissioner for Neighbourhood and Enlargement
SDGs, Targets, and Indicators
SDGs Addressed or Connected to the Issues Highlighted in the Article:
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 16: Peace, Justice, and Strong Institutions
Specific Targets Based on the Article’s Content:
- SDG 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% gross domestic product growth per annum in the least developed countries
- SDG 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation, including through a focus on high-value added and labor-intensive sectors
- SDG 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all
- SDG 16.6: Develop effective, accountable, and transparent institutions at all levels
Indicators Mentioned or Implied in the Article:
- Economic growth rate (not explicitly mentioned in the article, but implied by the need for financial assistance to support Jordan’s economic stability and reform agenda)
- Diversification of sectors (implied by the focus on promoting jobs, growth, and investment)
- Infrastructure development (implied by the aim to support Jordan’s structural reform efforts)
- Policy reforms addressing economic governance, public finance management, tax administration, social and labor market policy, and governance and fight against fraud, corruption, and money-laundering (mentioned as potential conditions for disbursement under the proposed MFA)
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% gross domestic product growth per annum in the least developed countries | Economic growth rate |
| SDG 9: Industry, Innovation, and Infrastructure | 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all | Infrastructure development |
| 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation, including through a focus on high-value added and labor-intensive sectors | Diversification of sectors | |
| SDG 16: Peace, Justice, and Strong Institutions | 16.6: Develop effective, accountable, and transparent institutions at all levels | Policy reforms addressing economic governance, public finance management, tax administration, social and labor market policy, and governance and fight against fraud, corruption, and money-laundering |
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Source: neighbourhood-enlargement.ec.europa.eu
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