Skip to main content
Economy and Finance

Jordan

The European Commission conducts regular analysis on macroeconomic and financial developments in Jordan and holds regular discussions with national authorities about economic policies. Moreover, Jordan benefits from an EU macrofinancial assistance...

Economic analysis

Macro-financial assistance

Since 2011, the Jordanian economy has been significantly affected by regional unrest, notably in neighbouring Iraq and Syria. The European Commission is providing Jordan with Macro-Financial Assistance (MFA) to cope with economic shocks, including the impact on its economy from the conflict in Syria and the presence of a large number of Syrian refugees.

MFA in the context of the COVID-19 pandemic

On 22 April 2020, the Commission adopted a proposal for a €3 billion MFA package to ten enlargement and neighbourhood partners to help them limit the economic fallout of the coronavirus pandemic. The decision was adopted by the European Parliament and the Council on 25 May 2020. As part of this package, the EU agreed on a MFA programme of EUR 200 million to Jordan (reinforcing the resources made available under MFA-III that was approved by co-legislators in January 2020). The Memorandum of Understanding between the EU and Jordan entered into force on October 2020. On 25 November 2020, the EU disbursed EUR 250 million of macro-financial assistance to Jordan, EUR 150 million of which came from this programme. On 20 July 2021, the EU disbursed the second EUR 250 million of assistance to Jordan, of which EUR 50 million came from the COVID-19 programme, thereby successfully completing the operation.

Memorandum of Understanding between the European Union and Jordan
English
(704.78 KB - PDF)
Iddawnlowdja

MFA III

The third programme of Macro-Financial Assistance, totalling EUR 500 million, was adopted by the co-legislators on 15 January 2020. The programme aims at supporting economic stabilisation, enhancing public debt sustainability and accelerating the implementation of economic reforms in the country. The Memorandum of Understanding between the EU and Jordan is being negotiated. The Memorandum of Understanding between the EU and Jordan entered into force on October 2020. On 25 November 2020, the EU disbursed EUR 250 million of macro-financial assistance to Jordan, EUR 100 million of which came from this programme. On 20 July 2021, the EU disbursed the second EUR 250 million of assistance to Jordan, of which EUR 200 million came from the MFA-III programme. The third and final tranche of this programme, amounting to EUR 200 million, will follow once Jordan fulfils the agreed commitments.

MFA II

The second programme of Macro-Financial Assistance, totalling EUR 200 million, was adopted by the co-legislators on 14 December 2016. The Memorandum of Understanding was signed on 19 September 2017, while the funds were fully disbursed in July 2019.

MFA I

The first programme of Macro-Financial Assistance, totalling EUR 180 million, was adopted by the co-legislators on 11 December 2013. The Memorandum of Understanding was signed in March 2014, while the funds were fully disbursed in 2015.

Press releases

Related EU Policies and Activities

The links below provide additional information on EU-Jordan relations: