Jordan is a partner country within the European Neighbourhood Policy (ENP). This country page contains, or links to, DG ECFIN’s recent analytical work on the economy of Jordan.
The EU held its last Macroeconomic Dialogue with Jordanian authorities in Amman in March 2014. The European Commission presented the EU economic outlook based on the winter 2014 economic forecast. The Jordanian authorities presented recent macroeconomic developments in their country. The meeting also provided the opportunity to follow up on the dialogue on economic reforms introduced by the EU’s High Representative Catherine Ashton following the Jordan-European Union (EU) Task Force meeting of 2012.
The next Macroeconomic Dialogue will take place in Brussels in spring 2015 (to be confirmed).
Since the beginning of 2011, Jordan has been severely affected by regional economic shocks, notably the conflict in Syria, which has resulted in an influx of refugees, and also repeated disruptions to natural gas imports from Egypt. Combined with higher international energy prices, these factors have strained public finances and external accounts, while giving rise to significant financing needs.
Following Jordan’s request for Macro-Financial Assistance (MFA) in December 2012, the European Commission, on 29 April 2013, proposed up to EUR 180 million in medium-term MFA loans for Jordan.
The negotiations on the Memorandum of Understanding (MoU), listing the economic policy measures to be undertaken by the Jordanian authorities, and the Loan Facility Agreement (LFA) related to this MFA operation were concluded in early 2014, and the two documents were signed on 18 March 2014. The MFA to Jordan is meant to complement funds provided by the IMF under its Stand-By Arrangement (SBA) with Jordan and is expected to be released in two instalments over the course of 2014. The assistance aims to support reforms in the areas of public finance management and taxation; social safety nets and labour markets; investment frameworks and trade; and the energy sector.
The links below provide additional information on EU-Jordan relations: