At the beginning of August, the European Commission proposed a grant to Jordan of a fifth macrofinancial assistance package worth €500 million to enable the country, which is one of the European Union’s Southern Neighbourhood countries, to consolidate its public finances and meet its external financial needs.
Designed to complement the fourth macrofinancial assistance package of an equivalent amount approved in the spring for the period 2025-2027 (see EUROPE 13621/26), this new support will again be disbursed in three tranches of preferential loans (possible moratorium on repayment, long maturity of up to 35 years).
The disbursements, which will take place alongside those from the fourth assistance package, will be conditional on the implementation of reforms agreed within a specific Memorandum of Understanding (MoU), including respect for democratic standards, the fight against corruption, the application of social and labour market policies, and improvements to the business environment, particularly in the energy sector.
On Monday 25 August, the EU institution announced the signing with the Jordanian authorities of the MoU relating to the fourth macrofinancial assistance package for Amman. This step paves the way for the payment of a first tranche of aid within a month, subject to a positive assessment by the European External Action Service.
Confronted with political instability in the Middle East, Jordan has seen its tourism revenues decline, even though economic growth was maintained at 2.5% of GDP in 2024 thanks to the manufacturing sector, agriculture and transport. Last year, the deficit reached 5.6% of GDP in 2024, public debt exceeded 90% of GDP (116.8% of GDP including the Social Security Investment Fund) while unemployment affected more than 20% of the working population, especially women and young people.
See the legislative proposal: https://aeur.eu/f/i46 (Original version in French by Mathieu Bion)