AMMAN — The European Commission announced on Monday that the European Union has signed a memorandum of understanding (MoU) with Jordan to implement a 500-million Euros Macro-Financial Assistance (MFA) program, under the strategic and comprehensive partnership agreed earlier this year.

 

The commission said that the first disbursement is expected within a month of signing, noting that the program aims to support economic stability, growth, long-term resilience, and reform efforts in Jordan, according to Al Mamlaka TV.

 

The MoU, signed on behalf of the EU by Commissioner Valdis Dombrovskis, represents the fourth pillar of the MFA package approved by the European Parliament and the Council in April 2025. The funding will be disbursed over two and a half years, in line with Jordan’s progress on the agreed reform agenda and policy measures, helping the Kingdom cover part of its external financing needs and advance its economic reforms.

 

The agreed reforms cover public financial management, governance and anti-corruption, social protection and labor market policies, green transition, and the business environment. Disbursement of funds is subject to adherence to the defined policy conditions.

 

European Commission President Ursula von der Leyensaid: “Jordan is a strategic partner for the European Union, and we are investing 500 million Euros in its future. This commitment aligns with Jordan’s reform agenda and supports progress in areas such as sustainable finance, green energy, and anti-corruption.”

 

She added, "By addressing immediate economic needs and promoting long-term prosperity, we support Jordan in building a stable and inclusive society. Today’s agreement reflects our confidence in Jordan’s ability to overcome regional disruptions and deliver reforms that benefit all its citizens".

 

High Representative for Foreign Affairs and Security Policy Kaja Kallas stated: "The EU is fulfilling its partnership with Jordan. This 500 million Euros assistance package will support reforms and stability, both vital for the EU. From hosting large numbers of Syrian refugees to serving as a key conduit for aid to Gaza, Jordan remains a pillar of regional stability and a close partner of the EU".

 

Commissioner Valdis Dombrovskis added: "I welcome the agreement with Jordanian authorities on the policy conditions underpinning the fourth MFA operation. The program aims to strengthen Jordan’s economy and facilitate reform in key areas such as public finance and labor markets.”

 

Commissioner Dubravka Šuica also noted that the signing "marks a significant milestone in the EU’s partnership with Jordan. The Macro-Financial Assistance program represents a major achievement in our strategic and comprehensive partnership. It reflects our shared commitment to supporting the resilience of Jordan’s economy and its reform ambitions. Jordan is a close and trusted partner of the EU and a key element of stability and cooperation in the Mediterranean".

 

This MFA operation responds to Jordan’s request in October 2023 for financial assistance following the regional instability triggered by the Israeli war in Gaza.

 

The commission proposed a new 500 million Euros program in April 2024, which was approved by the Parliament and Council in April 2025.

 

This assistance complements Jordan’s Economic Reform and Adjustment Program with the International Monetary Fund, as well as the recent $700 million Resilience and Sustainability Facility aimed at supporting the water and electricity sectors and enhancing health emergency preparedness.