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European Neighbourhood Policy and Enlargement Negotiations (DG NEAR)
Jordan

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Commission proposes further €500 million in Macro-Financial Assistance to Jordan
  • News article

The European Commission has today adopted a proposal for a new Macro-Financial Assistance (MFA) operation to Jordan worth up to €500 million. This financial support is an important demonstration of the EU's partnership and solidarity with Jordan. The proposed financial assistance aims to help Jordan

  • 4 min read

EU and Jordan

Relations between the EU and Jordan are based on the Association Agreement, which entered into force in May 2002.

The EU and Jordan have a strong partnership: Jordan is a key partner of the EU, and the EU highly values the important moderating role that Jordan plays in the region. The partnership is underpinned by a shared commitment to boost Jordan’s social and economic development through reforms and reinforce stability and growth while addressing the consequences of the Syrian crisis.

The EU-Jordan Partnership Priorities (PPs) adopted at the EU-Jordan Association Council in June 2022  guide the relationship until 2027. The Partnership priorities are based on common values and dialogue, and promote reforms in areas such as good governance, the rule of law, human rights, social cohesion and equal opportunities for all, non-discrimination, environmental and climate protection, macroeconomic stability and the business environment.

In July 2016, the EU and Jordan agreed on a simplification of the rules of origin applicable to imports of Jordanian goods into the EU in line with the EU-Jordan Compact. The simplification allows producers in Jordan to use a very advantageous set of rules of origin (equivalent to the ones granted to least-developed countries under the EU’s Everything But Arms initiative), on the condition that the production of their goods offers new job opportunities for Syrian refugees. The EU and Jordan signed a Mobility Partnership in October 2014 to better manage mobility and migration. Two programmes for a total amount of €4,9 million supported the implementation of key areas of this partnership.

The European Union (EU) cooperates with Jordan in the framework of the European Neighbourhood Policy (ENP). On 9 February 2021, the European Commission adopted a Joint Communication on the renewed partnership with the Southern Neighbourhood, establishing a new Agenda for the Mediterranean to relaunch and reinforce the EU’s partnership with the region. It will guide EU policy and programming towards Jordan for the coming years.

The Joint Communication is accompanied by an Economic and Investment Plan for the Southern Neighbours to ensure amongst others that the quality of life for people in the region improves and the economic recovery leaves no one behind.

Bilateral cooperation

EU assistance to Jordan is funded mainly through the new Neighbourhood, Development and International Cooperation Instrument (NDICI) for the period 2021-2027. The instrument includes grant funding as well as blending EU grants with loans from European and International Financing Institutions.

Bilateral assistance follows multiannual programming. Under NDICI, the priority areas for EU assistance have been set down in the Multiannual Indicative Programme (MIP) for the period 2021-2027, guided by the Partnership Priorities agreed between the EU and Jordan.

The MIP focuses on the following three priority sectors: 

• Good governance (democratic reforms, rule of law & security, accountability & effective administration);

• Support to green transition and to a resilient economy (green economy & energy-water-food nexus, private sector development);

• Support to human development (education & higher education, social protection, employability). 

For the first period of the MIP 2021-2024, €364 million have been allocated for EU bilateral cooperation with Jordan.

The NDICI instruments replaces the European Neighbourhood Instrument (ENI) under which the EU's bilateral assistance to Jordan for the period 2014 – 2020 amounted to €765 million.

Under the new NDICI instrument, an increased accent on blending EU grants with loans from European and International Financing Institutions will allow partner counties to unlock substantial levels of concessional funding for investments. The new system of guarantees provided for under the NDICI will give access to additional funds from the crowding-in of both public and private investors. Relevant flagship initiatives for Jordan under the Economic and Investment Plan include (1) investment in education to upgrade the skills of the youth, (2) improvement of the health system to provide quality services especially to the most vulnerable groups, (3) investment in the design of sustainable and comprehensive social assistance systems, (4) help to maximize the use of renewable energy and energy efficiency for water pumping, waste management and agriculture, (5) support to SMEs, (6) improvement of regional integration and connectivity.

With the aim of supporting the implementation of the Investment Plan, an “EU Jordan Investment Platform” was launched on 2 June 2022.

Jordan also benefits from additional funding opportunities under the Neighbourhood Investment Platform and the European Fund for Sustainable Development (EFSD+). The combined use of all EU instruments available to Jordan will support the implementation of the Global Gateway and the Economic and Investment Plan for the Southern Neighbourhood in the country. Flagship projects include the Amman-Aqaba Water Desalination and Conveyance project, which will provide 300 million cubic meters of fresh water a year, alleviating water scarcity in Jordan.

Syrian refugee crisis

The EU has spearheaded the international response to the Syrian crisis, supporting actions both inside Syria and in the affected neighbouring countries, with over €30 billion mobilised by the EU and its Member States since 2011.

Jordan and its people have been severely affected by the Syrian crisis, with over 653,000 refugees from Syria registered by UNHCR (October 2023). The EU’s total assistance since the beginning of the Syria crisis in 2011 amounts to about €4 billion through its various instruments. This includes:

  • €1.5 billion in bilateral assistance
  • Around €2.1 billion in resilience assistance, including macro-financial assistance, the EU Trust Fund for the Syria crisis “Madad” and NDICI funds
  • €417 million in humanitarian assistance

This support is helping Jordanian institutions, vulnerable Jordanians and refugees from Syria by:

  • Protecting the most vulnerable, both Jordanians and Syrians, meeting their most pressing humanitarian needs such as for health, food, shelter, water and sanitation,
  • Assisting Syrian refugees, providing them decent living conditions and access to basic services, including through advocacy on legal registration in the country,
  • Promoting economic growth and job creation for both Jordanian citizens and Syrian refugees, notably through facilitating access to basic, vocational and higher education, supporting private sector development, and facilitating trade with the EU. The aim is to foster socio-economic inclusion of refugees and increase their contribution to Jordan’s economic development,
  • Reinforcing the capacities of Jordanian institutions responsible for responding to the Syrian crisis at national and local levels, including by investing in the upgrading of infrastructure to cope with the additional pressure resulting from the refugee presence,
  • Supporting the operationalisation of the Jordanian National Social Protection Strategy (2019-2025), as part of EU’s long term support to social protection, which will contribute to the achievement of a sustainable system, in policy as well as institutional set-up,
  • Supporting the country’s macro-economic stability through the provision of direct budget support and Macro-Financial assistance to the Government.

At seven Brussels Conferences on the Future of Syria and the Region organised between 2017 and 2023, the EU and the international community renewed their support to the critical efforts the Jordanian government and citizens are undertaking in response to the crisis.

UNRWA and Palestine refugees

Jordan hosts more than 2.2 million Palestine refugees, of whom 17,500 come from Syria, displaced for a second time. The country benefits from EU contributions to the central budget of the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), which amounted to €279 million in 2021-2023.

Communication and awareness raising

Click on the banner below to find out about our activities in Jordan through our EU-funded regional communication Programme EU NEIGHBOURS South, designed to create awareness about the European Union in the Southern Neighbourhood region.

EU NEIGHBOURS south

EU NEIGHBOURS South

Regional cooperation

In addition to bilateral cooperation, Jordan benefits from regional and Neighbourhood-wide cooperation programmes under NDICI in the sectors of the rule of law and justice, environmental and climate protection, migration, culture and youth.

Under the EU twinning tool, the Jordanian public administration is partnering with European administrations for mutual learning and capacity building through sharing of EU best practices with seven twinning projects in 2020-2023 in key sectors such as justice, home affairs, environment, employment, transport, governance and statistics. Jordan also benefits from TAIEX (the Technical Assistance and Information Exchange instrument) counting 27 bilateral events organised between  2020 and 2023, and SIGMA (Support for Improvement in Governance and Management) that support public administration reforms.

Other financing instruments

Jordan participates in Erasmus+, which supports the modernisation of the higher education sector and promotes mobility and co-operation with EU higher education institutions. In 2022, 671 scholarships for Jordanian students and staff to travel to Europe were allocated, as well as 283 scholarships for European students and staff to go to Jordan.

Jordan benefits from additional EU thematic programmes and instruments:

  • “Human Rights and Democracy” programme: €6.6 million in 2022-2024
  • “Civil Society Organisations” thematic programme: €3 million in 2022-2024

Further information

Factsheets available to download

Key documents

For specific information (programme level), see below