Jordan: Council adopts negotiating position on EU assistance of EUR 500 million in loans

The Council decided today on its position in negotiations with the European Parliament on the provision of a further EUR 500 million of macro-financial assistance to Jordan.

The EU assistance will help strengthen Jordan’s economic stability and underpin its ongoing reform programme in the face of growing internal and external challenges. It aims to support the restoration of a sustainable external financing situation in the country, thereby supporting its economic and social development.

This assistance, which is provided in response to Jordan’s request for additional assistance in January 2025, will have a duration of two and a half years and is provided in the form of long-term loans, disbursed in three tranches.

The EU has provided Jordan with €1.08 billion since 2013 under three previous macro-financial assistance programmes. A fourth MFA programme is currently under implementation with the disbursement on 17 September 2025 of a first tranche of €250 million. The funds continue to support key reforms in public finance management, social and labour policy and governance.

More aid with strict conditionality

The assistance is subject to a Memorandum of Understanding, to be agreed between Jordan and the Commission. The disbursement of tranches will be strictly linked to Jordan’s progress in the reforms outlined in the MoU. Jordan must also respect democratic mechanisms, the rule of law and human rights for the duration of the programme. The Commission and the European External Action Service (EEAS) will monitor the fulfilment of these pre-conditions for the duration of the macro-financial assistance.

Context

Jordan continues to face high unemployment, chronic external deficits and rising public debt, which in 2024 reached 90.4 % of GDP. Regional instability in the Middle East has further strained Jordan’s public finances and trade balance.

The EU and Jordan have been linked by an association agreement since 2002. In that year they signed the partnership priorities, which aim to further strengthen cooperation and will guide the partnership until 2027. EU support to Jordan helps the country to mitigate the consequences of the war in Syria and the consequently high number of refugees, as well as the effects of other regional conflicts, for example the war in Gaza.

Macro-financial assistance is a way of extending EU financial assistance to partner countries experiencing a balance of payments crisis. Enlargement countries and countries in the EU’s neighbourhood facing serious balance of payments problems are eligible. The proposed operation is further complemented by the EU’s bilateral cooperation under the Neighbourhood, Development Cooperation and International Cooperation Instrument – Global Europe (IVCDCI-EG).

More information: European Council