Jordan: Council greenlights further EU assistance of €500 million in loans 10:45 The Council today formally adopted a decision to provide a further €500 million in[...]

The Council today formally adopted a decision to provide 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, also worth €500 million, is currently underway and 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 agreed today 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 this fifth MFA programme.

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, the two sides signed partnership priorities, which aim to strengthen cooperation further and to guide the partnership until 2027. An EU-Jordan strategic and comprehensive partnership was agreed in January 2025. This partnership is backed by a €3 billion financial and investment package for 2025-2027, including through MFA. The package focuses on supporting Jordan's stability amid extraordinary geopolitical challenges, on furthering political, economic and administrative modernisation, and on fostering economic resilience.

The EU's support to Jordan therefore also 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).

• EU-Jordan relations: facts and figures (background information)
• EU-Jordan summit (8 January 2025)
• EU's Macro-Financial Assistance (European Commission)
• EU-Jordan Partnership Priorities (Jordan-EU Association Council, 2 June 2022)
• Jordan: Council adopts negotiating position for EU assistance of €500 million in loans (press release, 15 October 2025)
• Jordan: Council adopts decision to provide EU assistance of €500 million in loans (press release, 14 April 2025)