The Council today decided on its position for negotiations with the European Parliament regarding the provision of a further €500 million in macro-financial assistance (MFA) to Jordan.
The EU assistance will help bolster Jordan's economic stability and support its ongoing reform agenda in the face of mounting internal and external challenges. It aims to support the restoration of a sustainable external financing situation for the country, thereby supporting its economic and social development.
The assistance, provided in response to Jordan's request for additional support in January 2025, will be available for two and a half years and provided in the form of long-term loans, disbursed in three instalments.
The EU has provided Jordan with €1.08 billion under three previous MFA programmes since 2013. A fourth MFA programme is currently underway, with a first instalment of €250 million disbursed on 17 September 2025. The funds continue to support key reforms in public finance management, social and labour policy, and governance.
Further support under strict conditions
The assistance is subject to a memorandum of understanding (MoU), to be agreed by Jordan with the Commission. Disbursement of instalments will be strictly linked to Jordan's progress with the reforms outlined in that MoU. Jordan must also respect democratic mechanisms, the rule of law, and human rights throughout the programme's duration. The Commission and the European External Action Service (EEAS) will monitor the fulfilment of this precondition for the duration of the macro-financial assistance.
Background
Jordan continues to face high unemployment, chronic external deficits, and rising public debt which reached 90.4% of GDP in 2024. Regional instability in the Middle East has further strained Jordan's public finances and trade balances.
The EU and Jordan have been linked by an Association Agreement since 2002. In 2022, they signed the partnership priorities, which aim to strengthen cooperation further and will guide the partnership until 2027. The EU's support to Jordan assists the country in mitigating the impact of the war in Syria and the resulting large number of refugees as well as the impact of other regional conflicts, including the war in Gaza.
MFA is a form of financial aid extended by the EU to partner countries experiencing a balance of payments crisis. 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).