European Commission proposes 500m euros of macro-financial assistance to Jordan

AMMAN — The European Commission on Monday adopted a proposal for a new Macro-Financial Assistance (MFA) programme for Jordan worth up to 500 million euros.

The proposed financial assistance aims to provide support to the ambitious Jordanian reform agenda, promoting jobs, growth and investment for the benefit of the people of Jordan, according to a statement from the European Commission.

“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,” Pierre Moscovici, commissioner in charge of economic and financial affairs, taxation and customs, was quoted in the statement as saying.

The new programme would build on the two previous MFA programmes through which the EU has disbursed a total of 380 million euros to Jordan since 2011, the statement said.

A recent evaluation on the implementation of MFA operations concluded that the first MFA programme was relevant to Jordan’s economic challenges and in line with the EU’s priorities. The evaluation also found that the programme was implemented efficiently and in close coordination with the Jordanian authorities, helped preserve macro-economic stability and had a positive social impact, according to the statement.

MFA funds are made available in the form of low-interest, long-term loans, according to the statement.

The statement said disbursements under the proposed programme would be strictly conditional on the implementation of specific policy conditionality to be agreed upon by the EU and Jordan, and set out in a Memorandum of Understanding.

The commission’s proposal for a third MFA programme with Jordan is subject to the approval of the European Parliament and of the Council of the EU under the ordinary legislative procedures.

The statement said that MFA programmes are part of the EU's wider engagement with neighbouring countries, adding that the EU’s support to Jordan, including the MFA programmes, assist the country in mitigating the impact of the Syrian crisis.

Overall, the EU has already mobilised more than 2.2 billion euros for Jordan since the beginning of the Syrian crisis in 2011, and its aid includes humanitarian assistance, together with longer-term resilience and development support in areas such as education, livelihoods, water, sanitation and health, addressed to Syrian refugees and Jordanian host communities, the statement concluded.