The European Commission has adopted a proposal which will provide up to €500m in macro-financial assistance to Jordan.
The funding, which will be distributed in the form of low interest, long term loans, will go towards supporting Jordan’s proposed agenda for growth and reform. It represents the third round of the EU’s programme of macro-financial assistance to Jordan, designed to offer an ‘exceptional crisis response’ as the country contends with the social and economic impacts of the ongoing Syrian conflict.
Since the beginning of the crisis in Syria in 2011, the EU has distributed more than €2.2bn in aid and macro-financial assistance to Jordan, with its last two programmes of macro-financial funding accounting for €380m. The macro-financial provision, which is disbursed under the condition that Jordan continues to meet the EU’s policy expectations, has been found by the Commission’s evaluators to be both in line with the EU’s priorities for humanitarian aid and relevant to the economic needs of Jordan; with evaluators concluding that the programme, which operated in close co-ordination with Jordanian authorities, had been efficiently implemented and had helped to maintain macroeconomic stability in the region.
Additional funding issued under the EU’s humanitarian assistance programmes goes towards supporting Syrian refugees and Jordanian host communities in gaining access to education, healthcare, sanitation and water; as well as initiatives aimed at shoring up long term resilience.
Pierre Moscovici, Commissioner in charge of Economic and Financial Affairs, Taxation and Customs, said: “Today’s proposal demonstrates the EU’s sustained commitment to supporting Jordan in what remain challenging times. Jordan has made significant strides in its reform process; but addressing economic difficulties requires continued action. The Commission stands ready to work closely with the Jordanian authorities to deliver the vital economic reforms necessary to secure a stronger, more stable economy for the benefit of its people.”
The Commission’s proposal for macro-financial assistance to Jordan will be passed to the European Parliament and the Council of the EU for further approval.