LONDON: The European Commission has announced a proposal for a new macro-financial assistance operation for Jordan, with funding up to €500 million ($542 million).

The MFA is part of the EU’s broader strategy to support neighboring countries, serving as an extraordinary instrument for EU crisis response.

Specifically, the EU aims to assist Jordan in coping with the adverse effects of the war in Syria, including the influx of refugees it has hosted.

The recent financial aid aims to help Jordan address its external financing requirements, bolster fiscal consolidation efforts, and enhance structural reforms. This support is crucial for the continuation of Jordan’s ambitious reform agenda, which focuses on job creation, growth, and investment.

European Commission President Ursula von der Leyen said: “Today’s proposal is a clear indication of the EU’s ongoing solidarity with Jordan, offering up to €500 million in support during these challenging times of geopolitical instability.”

Since the crisis began in 2011, the EU has mobilized approximately €4 billion in support of Jordan. The funds from this MFA will be provided as long-term loans under concessional terms.

The plan includes disbursing the funds in three installments, contingent on Jordan implementing specific policy measures agreed upon with the EU, detailed in a memorandum of understanding. These reforms may encompass improvements in economic governance, such as public finance management and tax administration, social and labor market policies, and efforts to combat fraud, corruption, and money laundering.

The proposal for this fourth MFA to Jordan now awaits approval from the European Parliament and Council.