Spanish
The European Commission and Jordan signed this Monday the memorandum of understanding that will allow the European Union to disburse 500 million euros in macro-financial assistance to the country in the next two and a half years if it implements certain reforms agreed with the Twenty-Seven.
Jordan had requested macro-financial assistance in October 2023 due to the deterioration of its economic situation caused by regional instability generated by the war in Gaza, and the EU Council and the European Parliament approved this package of 500 million euros last April.
The aid will allow the country to cover part of its external financing needs and support its economic reforms and will be disbursed in installments as long as the Jordanian authorities comply with the reforms and policy measures detailed in the memorandum, as explained by the Community Executive in a statement.
These reforms seek to strengthen the Jordanian economy in "key" areas such as the management of public finances, the fight against corruption, social protection and labor market policies, the green transition and the business environment, the institution pointed out, specifying that in addition the country must comply with the prior political conditions established in the strategic partnership between the EU and Jordan.
"Today's agreement reflects our confidence in Jordan's ability to navigate regional turbulence, advance reforms that benefit all its citizens, and ensure its stability," said European Commission President Ursula von der Leyen in a statement.
The first disbursement is expected within a month after the agreement is signed today, provided that the European External Action Service confirms that the political requirements have been met, as well as that the International Monetary Fund (IMF) program for the country progresses "positively".
The rest will depend on whether the agreed measures are implemented on time. This EU macro-financial assistance complements the adjustment and reform program between Jordan and the IMF agreed in 2024, through which the Washington-based Fund has already delivered to the country 391 million dollars of the 1.3 billion agreed. Furthermore, the European Commission has recently proposed a new package of 500 million euros in loans as macro-financial assistance to Jordan, the fifth to date, which still needs to be approved by the Council and the Eurochamber.
