New funding deepens strategic partnership and backs structural reforms. Green finance framework and responsible business central to resilience-building. ESG BROADCAST shares key takeaways.
The European Commission has proposed an additional €500 million in Macro-Financial Assistance (MFA) to the Hashemite Kingdom of Jordan, reinforcing its support for the country’s fiscal consolidation, economic stability, and reform implementation. Announced on 5 August 2025, this proposed financial package builds on a robust bilateral framework outlined in the Strategic and Comprehensive Partnership agreed earlier this year. The MFA aims to bolster Jordan’s external financing capacity while accelerating reforms in governance, public finance, energy, and investment climate.
This new proposal complements the existing fourth MFA programme for Jordan, which was approved by the European Parliament and Council in April 2025. That programme, also worth €500 million and scheduled for disbursement through 2025–2027, marked a pivotal moment in EU-Jordan cooperation. Combined, these two initiatives elevate the EU’s macro-financial commitment to Jordan to €1 billion—underscoring a deepening financial and political partnership.
The assistance will be structured as long-term concessional loans, disbursed in three tranches. Each instalment will be conditional upon Jordan fulfilling specific policy commitments, to be jointly defined and ratified in a forthcoming Memorandum of Understanding between the EU and the Jordanian authorities. These commitments will align with the reform trajectory under the ongoing MFA programme, which is expected to be operationalised shortly.
Crucially, disbursements will require Jordan to demonstrate sustained engagement with its IMF-supported programme, in addition to upholding democratic governance, rule of law, and human rights. Priority areas for policy conditionality include public finance management, tax administration, anti-corruption mechanisms, labour and social policies, and sectoral governance improvements in energy and business environment reforms.
European Commission President Ursula von der Leyen described Jordan as “a key strategic partner for the European Union in the Middle East,” emphasising that the proposed assistance serves as a concrete step in delivering shared development goals. “We are reinforcing our shared ambition for Jordan to advance vital reforms strengthening its resilience and fostering inclusive growth,” she stated.
Strategic significance lies in the EU’s use of macro-financial assistance as a diplomatic and developmental tool, promoting fiscal discipline, responsible governance, and a favourable climate for sustainable investment. For ESG stakeholders, these funds signal an opportunity to link policy-based lending with environmental and social reform, offering a regional case study in strategic green finance partnerships and reform-aligned disbursement models.
ESG BROADCAST will continue monitoring the updates related to this topic. Stay tuned to be updated on the related policy and pivotal regulatory shift.
