(MENAFN) The European Council announced on Wednesday that it has established its position for talks with the European Parliament on providing an additional $550 million in Macro-Financial Assistance (MFA) to Jordan.

According to reports, the EU aid aims to strengthen Jordan’s economic resilience and support ongoing reforms amid rising domestic and external pressures.

“It [the assistance] aims to support the restoration of a sustainable external financing situation for the country, thereby supporting its economic and social development,” the council stated.

The funding, requested by Jordan in January 2025, will be available over a period of two and a half years and disbursed as long-term loans in three instalments.

Since 2013, the EU has provided Jordan with $1.19 billion under three previous MFA programmes. A fourth programme is currently underway, with its first instalment of $275 million released on September 17.

“The funds continue to support key reforms in public finance management, social and labour policy, and governance,” the council noted.

Jordan and the EU have been connected through an Association Agreement since 2002. In 2022, the two parties signed partnership priorities aimed at deepening cooperation, which will guide their collaboration until 2027.

The EU’s support helps Jordan mitigate the economic impact of regional crises, including the war in Syria and the large refugee influx, as well as the consequences of conflicts such as the war in Gaza.

Macro-Financial Assistance is a form of EU financial support provided to partner countries experiencing balance-of-payments crises. It is extended to both enlargement and EU neighbourhood countries facing severe economic difficulties.

The planned operation is further reinforced by EU bilateral cooperation under the Neighbourhood, Development and International Cooperation Instrument - Global Europe (NDICI-GE).

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