EU proposes additional EUR 500 million macro-financial assistance to Jordan

The European Commission proposed an additional EUR 500 million in Macro-Financial Assistance to Jordan on 5 August 2025, lifting the EU's total macro-financial commitment to EUR 1 billion when combined with the fourth MFA programme approved in April 2025. The concessional, conditionality-based model links policy-based lending to governance and energy reforms, offering ESG stakeholders a case study in reform-aligned green finance partnerships.

The European Commission proposed an additional EUR 500 million in Macro-Financial Assistance (MFA) to the Hashemite Kingdom of Jordan, announced on 5 August 2025, to support fiscal consolidation, economic stability, and reform implementation. It builds on the Strategic and Comprehensive Partnership agreed earlier this year and complements the existing fourth MFA programme, also worth EUR 500 million, approved by the European Parliament and Council in April 2025 and scheduled for disbursement through 2025-2027. Combined, the initiatives elevate the EU's macro-financial commitment to Jordan to EUR 1 billion.

The assistance affects Jordan's government, public finance institutions, and sectors targeted for reform, including energy and the business environment. Structured as long-term concessional loans disbursed in three tranches, each instalment is conditional on Jordan fulfilling specific policy commitments defined in a forthcoming Memorandum of Understanding. Priority conditionality areas include public finance management, tax administration, anti-corruption mechanisms, labour and social policies, and sectoral governance in energy and business reforms. Disbursements also require sustained engagement with Jordan's IMF-supported programme and upholding democratic governance, rule of law, and human rights.

Jordanian authorities should negotiate and ratify the forthcoming Memorandum of Understanding defining policy commitments, and maintain engagement with the IMF-supported programme to unlock the three tranches. The government should advance reforms in public finance, tax administration, anti-corruption, labour, and energy-sector governance tied to disbursement conditions. ESG stakeholders should monitor how the policy-based lending links to environmental and social reform, with Commission President Ursula von der Leyen framing the assistance as reinforcing shared ambition for vital reforms, resilience, and inclusive growth.

Key figure — Combined commitment: EUR 1 billion total, comprising two EUR 500 million MFA programmes