EU pledges further aid to Jordan

‘EU Legislation in Progress’ briefings aim to provide Members of the European Parliament with systematic and automatic analysis on all substantial proposals for EU legislation at every stage of the legislative procedure. Each contains an account of the purpose, content and legal aspects of the legislation proposed, in particular analysing what the legislation would change, as well as any previous legislation and the background. An overview of stakeholders’ views is also provided, as well as the opinions of national parliaments and the two advisory committees.

They are all made publicly available for stakeholders and the public.Since 2011, Jordan's economy has suffered from the negative spill-overs of the on-going regional conflicts and the Syrian refugee crisis, weakening the country's fiscal and external financing position. In line with the EU's objective to support the stability and development of Jordan's economy, the European Commission has presented a proposal to grant the country a second package of macro-financial assistance (MFA). Amounting to a maximum of €200 million, the assistance would help the country cover a part of its external financing needs.

The first MFA package, worth €180 million, was approved in 2013 and fully disbursed in 2015. In addition to the significant resources mobilised by the multilateral and bilateral donors, this second MFA, adopted in December 2016, will, by strengthening the economy, contribute to Jordan's overall stability, which is a high priority for the EU.

The Commission will, if appropriate, put forward a new proposal in 2017 to extend and increase this MFA to Jordan. EU aid will complement the International Monetary Fund's new programme of about US$723 million, focusing on the country’s economic and financial reform programme.

Author: Krisztina Binder

• Primary Source

EP: EPRS: Briefing: EU Legislation in Progress http://epthinktank.eu/eu-legislation-in-progress/

ESO: Background information: Proposal for a Decision of the European Parliament and of the Council providing further macro-financial assistance to the Hashemite Kingdom of Jordan http://www.europeansources.info/record/proposal-for-a-decision-of-the-european-parliament-and-of-the-council-providing-further-macro-financial-assistance-to-the-hashemite-kingdom-of-jordan/

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