Commission staff working document - Accompanying the Communication from the Commission to the European Parliament and the Council - Taking stock of the European Neighbourhood Policy (ENP) - Implementation of the European Neighbourhood Policy in 2009 Progress Report Jordan {COM(2010) 207 final} {SEC(2010) 513 final} {SEC(2010) 514 final} {SEC(2010) 515 final} {SEC(2010) 516 final} {SEC(2010) 517 final} {SEC(2010) 518 final} {SEC(2010) 519 final} {SEC(2010) 520 final} {SEC(2010) 521 final} {SEC(2010) 522 final} {SEC(2010) 523 final} {SEC(2010) 524 final}
Date: 2010-05-04
Institutions: European Commission
Subjects: European neighbourhood policy, Jordan, democracy, economic integration, energy policy, environmental protection, geographical mobility, human rights, legal system, political cooperation, report, settlement of disputes

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EUROPEAN COMMISSION  

Brussels, 12.5.2010 
SEC(2010) 525 final 

COMMISSION STAFF WORKING DOCUMENT 

Accompanying the 

COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 
Taking stock of the European Neighbourhood Policy (ENP) 

Implementation of the European Neighbourhood Policy in 2009 
Progress Report Jordan 

{COM(2010) 207 final} 
{SEC(2010) 513 final} 
{SEC(2010) 514 final} 
{SEC(2010) 515 final} 
{SEC(2010) 516 final} 
{SEC(2010) 517 final} 
{SEC(2010) 518 final} 
{SEC(2010) 519 final} 
{SEC(2010) 520 final} 
{SEC(2010) 521 final} 
{SEC(2010) 522 final} 
{SEC(2010) 523 final} 
{SEC(2010) 524 final} 

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1. 

BACKGROUND AND OVERALL ASSESSMENT 

Jordan and the European Community first established contractual relations in 1977 by signing 
a Cooperation Agreement. An EU-Jordan Association Agreement entered into force in 2002. 
It sets out in more detail the specific areas in which the relations can be developed bilaterally. 
On this basis, the EU-Jordan ENP Action Plan was approved in January 2005, for a period of 
three  to  five  years.  It  supports  the  national  reform  process,  articulated  in  Jordan’s  ten-year 
national  agenda  and  the  initiative  “We  are  all  Jordan”  which  form  the  basis  for  Jordan’s 
National  Social  and  Economic  Development  Programme.  The  framework  for  regional  co-
operation is the Euro-Mediterranean Partnership, inaugurated in 1995 and reinforced in 2008 
with the creation of the Union for the Mediterranean (UfM), which establishes a policy with 
ambitious and long-term objectives. 

EU–Jordan  meetings  took  place  at  the  level  of  the  Association  Council,  the  Association 
Committee and the eleven subcommittees, of which ten were activated. During the reporting 
period the fourth round of subcommittee meetings was completed. 

This document reports on progress made on the implementation of the EU-Jordan ENP Action 
Plan  between  1  January  and  31  December  2009,  although  developments  outside  this  period 
are  also  taken  into  consideration  when  deemed  relevant.  It  is  not  a  general  review  of  the 
political  and  economic  situation  in  Jordan.  In  addition,  for  information  on  regional  and 
multilateral sector processes, please refer to the sectoral report. 

In November 2009 the EU reiterated the commitment to further strengthen the relations with 
Jordan within the framework of the European Neighbourhood Policy. The EU values Jordan 
as  a  very  important  partner  in  both  the  ENP  and  the  Union  for  the  Mediterranean  and  is 
committed to further developing a close, constructive and mutually beneficial partnership. As 
the  expiry  of  the  current  ENP  Action  Plan  approaches,  the  next  Action  Plan  is  being 
developed  to  further  deepen  and  broaden  EU-Jordan  relations  through  intensified  political 
dialogue. This dialogue will include the area of human rights and democracy as an important 
element  of  enhancement  of  relations,  strengthen  co-operation  in  a  number  of  sectors  and 
promote  Jordan’s  participation  in  certain  EU  programmes.  The  EU  has  acknowledged  the 
efforts  of  Jordan  to  move  forward  with  ambitious  political  and  economic  reforms.  The 
“enhanced status” will be based on the core values the EU and Jordan share, i.e. democratic 
principles including the rule of law, the respect for human rights and the organisation of fair 
and transparent elections. 

In  this  context,  a  meeting  at  senior  officials’  level  of  the  “Ad  hoc  Group”  was  held  in 
November 2009 focussing on the enhancement of relations.  

The last quarter of 2009 witnessed important changes on the political scene. King Abdullah 
dissolved  the  Parliament  in  November  2009  and  called  for  pre-term  elections.  A  new 
government  was appointed in December 2009, tasked with an ambitious reform programme 
notably touching upon economic recovery and development of key sectors such as energy and 
transport, good governance, transparency and efficiency of the public service, decentralisation 
and citizens' participation.  

Progress was made in the area of governance and transparency, with the start of work of the 
Ombudsman  office  and  the  adoption  of  a  code  of  conduct  streamlining  the  relationship 
between  the  Government  and  the  media.  Some  progress  was  made  in  the  areas  of  human 
rights and fundamental freedoms, such as women’s protection against domestic violence and 

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equal  treatment,  the  rights  of  the  child  and  the  fight  against  human  trafficking.  Moreover, 
some  progress  was  made  in  the  fields  of  transport,  renewable  energy,  and  science  and 
technology. 

2. 

ENHANCED POLITICAL DIALOGUE AND REFORM 

Democracy and the rule of law 

Regarding electoral reform, King Adbullah tasked the new Government (which took office in 
December  2009)  to  amend  the  “Elections  Law”  in  view  of  the  new  parliamentary  elections 
(expected no later than 2010), further to the dissolution of the Parliament in November 2009. 
The envisaged amendments should improve inter alia the access of women and some social 
groups to the new Parliament. The King stressed that the next elections "should be a model of 
transparency, fairness and integrity”. 

Furthermore,  the  new  Government  pledged  transparency  and  accountability  and  adopted  a 
code  of  conduct  to  streamline  the  relationship  between  the  Government  and  the  media, 
including the activation of the role of spokespersons, daily meetings with the press, bi-weekly 
press briefings and bi-monthly press conference. The implementation of the code of conduct 
in practice remains to be seen. 

Both  Jordan’s  National  Agenda  and  the  National  Economic  and  Social  Development 
Programme  2009-2011  emphasise  the  need  to  enhance  the  independence  of  the  judiciary, 
notably to lessen the administrative dependency of courts upon the Ministry of Justice.  

Further  progress  on  good  governance  and  transparency  was  made  as  Jordan's  Ombudsman 
bureau, established in 2008, became operational, i. e. receiving complaints from the public, in 
February 2009. Over the reporting period, the Bureau received over 2,700 complaints out of 
which  1.100  were  accepted.  In  June  2009,  a  first  Ombudsman  was  appointed.  Efforts  were 
made  to  raise  citizens’  awareness  on  the  role  of  the  Ombudsman  including  through  public 
information  campaigns.  In  December  2009,  the  Ombudsman  joined  the  Mediterranean 
Association  of  Ombudsmen.  The  Ombudsman  Bureau  is  currently  preparing  to  join  the 
International Ombudsman Institute. 

As  regards  perception  of  corruption,  Jordan  was  ranked  performing  far  better  than  most 
countries in the region. In December 2009, the Prime Minister pledged “zero tolerance” for 
corruption which constitutes a top priority of the Government. 

Human rights and fundamental freedoms 

The UN Universal Periodic Review (UPR) on the fulfilment of human rights obligations by 
Jordan  took  place  in  February  2009.  The  review  highlighted  issues  such  as  women’s  and 
children’s  rights,  freedom  of  expression,  freedom  of  association,  situation  in  the  prisons, 
administrative  detention,  workers’  rights,  etc.  Jordan  endorsed  53  and  rejected  23  UPR 
recommendations.  The  UPR  on  Jordan  was  concluded  in  the  UN  Human  Rights  Council 
session in June 2009 and Jordan was also re-elected in 2009 for a three-year term to the UN 
Human Rights Council. 

Progress  can  also  be  reported  as  regards  detention  conditions.  The  National  Centre  for 
Human Rights (NHCR) and the Public Security Directorate signed in 2009 a Memorandum of 
Understanding allowing unannounced visits to the facilities by several lawyers. 

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Following  criticism  by  non-governmental  organisations  (NGOs)  notably  as  regards  the 
administrative  and  legal  framework  for  non-governmental  organisations,  a  revised  and 
partially  improved  “Associations  Act”  entered  into  force  in  September  2009.  The  amended 
law  no  longer  includes  the  possibility  of  imprisonment  for  breaches  of  the  law.  However, 
concerns  remain  over  the  conditions  under  which  an  NGO  can  be  created,  controlled  and 
financed. For example, registration of an association continues to depend on the approval of 
the  Registration  Administration  Board  and  grounds  to  deny  are  not  clearly  detailed.  In 
practice, it is still too early to assess the actual impact of the implementation of the new law 
for the NGOs. 

Jordan continues to apply a de facto moratorium on the death penalty executions since May 
2006. Four death sentences were issued in 2009. Jordan has not yet ratified the 2nd Optional 
Protocol to the International Covenant on Civil and Political rights. 

Some progress was made as regards the fight against torture and ill-treatment. In 2009, the 
definition  of  torture  under  the  Jordanian  legislation  was  brought  in  line  with  the  UN 
Convention  against  Torture.  Jordan  has  not  yet  ratified  the  Optional  Protocol  to  this 
Convention.  According  to  the  NCHR  the  number  of  complaints  of  ill-treatment  decreased 
during the reporting period. 

Jordan  advanced  in  the  international  indexes  on  press  freedom.  However,  some  concerns 
remain as regards the application of the Penal Code. The existing Press and Publications Law 
still  authorises  the  imprisonment  of  journalists  and  foresees  the  imposition  of  fines  on 
journalists  (a  few  cases  were  reported  in  2009)  and  encourages  self-censorship.  The  EU 
contributes to enhancing the professionalism of journalists in Jordan and promoting respect of 
human rights and freedom of the press by supporting the “Jordan Media Institute”. 

Regarding freedom of assembly, the Public Gathering Law introduced some limited positive 
developments, e.g. the tacit approval in the absence of response 24 hours after the request. In 
addition,  14  categories  of  gathering  do  no  longer  require  prior  approval.  However,  prior 
authorisation of the relevant Governor is still required for most public gatherings. 

Jordan  has  nine  pending  reports  under  the  UN  Treaty  Bodies.  It  has  issued  a  standing 
invitation to all thematic procedures (2006). The visit of a UN Special Rapporteur on violence 
against women is pending since 2007. 

Jordan  continued  to  make  progress  in  improving  the  overall  situation  of  women,  notably 
concerning  the  protection  against  domestic  violence  and  equal  treatment.  However,  further 
steps are needed to ensure effective protection of women against all forms of discrimination 
and violence in law and practice. In March 2009, Jordan lifted its reservation to the articles of 
the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) 
which  restricted  movement  of  persons  and  freedom  to  choose  residence.  Women  are  now 
allowed to travel without permission from father, brother or husband and to choose their place 
of  residence.  The  Civil  Status  Code  was  amended  accordingly.  However,  Jordan  still 
maintains  reservations  related  to  the  transmission  of  nationality  to  children  (affecting  more 
than 12,000 women married to non-Jordanians) and to inheritance rights. It is not party to the 
optional protocol of CEDAW. 

Some  progress  can  be  reported  as  regards  honour  crimes  (some  20  cases  still  occur  every 
year), following the Ministry of Justice’s decision to establish in August 2009 a special court 
to handle cases of honour killings. In October 2009 the court issued its first verdict, imposing 

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a  15  years  imprisonment  sentence  on  a  man  who  committed  an  honour  crime.  However, 
additional efforts are needed to further treat cases of honour crimes as ordinary crimes and to 
make sentences less lenient.  

The  first  Women’s  Complaint  Bureau,  launched  in  February  2009,  addresses  domestic 
violence  and  labour  issues  that  women  face,  especially  spousal  abuse,  workplace 
discrimination and sexual harassment. The office is responsible for collecting national data on 
violence against women and issuing an annual report with its findings. Furthermore, the main 
ministries pursued the policy of gender mainstreaming by setting up dedicated gender units. 

Jordan  pursued  the  progress  made  over  the  last  years  in  the  protection  of  the  rights  of  the 
child.  Actions  were  undertaken  in  2009,  in  cooperation  with  UNICEF,  to  eliminate  child 
labour  (32,000  children  affected)  by  means  of  inspector  training,  contacts  with  parents  and 
schools  and  a  social  support  centre  in  Amman.  As  regards  combating  violence  against 
children  in  all  settings,  an  action  plan  against  teacher  practices  was  launched  to  reduce 
violence against students by 90% in three years. A programme addressing high drop-out rates 
is in place. 

Regarding  fundamental  social  rights  and  core  labour  standards,  no  progress  can  be 
reported  on  the  ratification  of  the  ILO  Convention  on  the  freedom  of  association  and 
protection of the right to organise (n° 87).  

Overall,  the  situation  of  migrant  workers  (22.5%  of  the  Jordanian  labour  force)  remains  a 
concern. Over the reporting period the Ministry of Labour submitted proposals on regulations 
on  migrant  workers  and  intended  to  put  in  place  the  ILO  decent  work  programmes,  which 
protect  their  rights.  In  2009,  the  Labour  Code  was  amended  to  cover  the  employment  of 
migrant domestic workers. However, in order to meet the Action Plan commitments, Jordan 
needs to commit further on this issue, especially as regards the protection of female migrant 
domestic workers who are particularly vulnerable.  

Cooperation  on  foreign  and  security  policy,  regional  and  international  issues,  conflict 
prevention and crisis management 

Jordan kept a regular dialogue with the EU on CFSP-related matters and international issues. 
Jordan remains a strong supporter of a comprehensive solution to the MEPP and continues to 
play  a  constructive  role  in  promoting  the  stability  of  the  region.  The  country  continued  to 
advocate,  both  bilaterally  and  in  international  fora,  the  resumption  of  the  Israeli-Palestinian 
negotiations. 

Jordan's  commitment  in  further  developing  the  Union  for  the  Mediterranean  was  also 
acknowledged by the appointment after the reporting period in January 2010 of Ambassador 
Ahmad Masa’deh as its first Secretary-General. 

Jordan, which was by the end of 2009 the seventh largest contributor of military and police 
personnel to UN international peacekeeping operations worldwide, continued to participate in 
various  operations  notably  by  deploying  its  forces  in  Congo,  Liberia,  the  Ivory  Coast  and 
Haiti.  

Jordan is still hosting a large number of Iraqi refugees, the overall number of whom however 
remains disputed. By the end of September 2009, the total number of Iraqi refugees registered 
by the UNHCR in Jordan was over 46,000 (in contrast with 500,000 Iraqi refugees reported 

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by  the  Jordanian  Government).  The  Jordanian  Ministry  of  Health  continued  to  provide  free 
preventive  and  primary  health  care  to  Iraqis  and  Iraqi  children  (more  than  27 000)  also 
continued to be able to attend government schools. 

3. 

ECONOMIC AND SOCIAL REFORM  

Macroeconomic framework and functioning of the market economy 

After the recent period of robust growth, GDP growth moderated to 3% in 2009 on account of 
the  indirect  impact  of  the  global  economic  crisis.  The  slowdown  has  affected  growth  in  a 
number of sectors, particularly construction, real estate, and export industries. Investment fell 
sharply, driven by a decline in FDI from surrounding Arab states as oil earnings have shrunk. 
Remittances from Jordanians  working abroad,  which  account  for  roughly  20%  of  GDP  also 
fell but less than feared. Inflation has been declining since the third quarter of 2008 with the 
Consumer  Price  Index  (CPI)  going  into  negative  territory  in  the  second  quarter  of  2009. 
Average inflation for 2009 is expected to be about 1%. Despite the slowdown, unemployment 
is  not  expected  to  rise  markedly  given  the  large  number  of  migrant  workers  in  the  sectors 
most affected. 

Both  trade  and  current  account  balance  are  set  to  narrow.  The  current  account  deficit  is 
expected  to  shrink  from  11.9%  of  GDP  in  2008  to  around  6.5%  of  GDP  in  2009,  strongly 
influenced  by  the  decline  in  food  and  fuel  prices.  Jordan's  banking  sector  has  not  been 
seriously  affected  by  the  global  economic  crisis  on  account  of  limited  exposure  to 
international  property  and  equity  markets.  As  a  precautionary  measure,  the  Government 
guaranteed  all  bank  deposits  until  the  end  of  2009.  Jordan’s  limited  integration  with  global 
financial markets has buffered it from the direct impact of the global financial crisis. To deal 
with the impact of the crisis, the Central Bank of Jordan (CBJ) cut interest rates three times up 
to April 2009 bringing the benchmark rate to 5.25% (the lowest since August 2005). At the 
same  time,  the  CBJ  reduced  banks'  reserve  requirements  to  7%  (compared  with  10%  in 
October 2008) in order to boost liquidity. 

The budget deficit in 2009 is forecast to swell to 12.5% of GDP excluding grant aid, or about 
8% of GDP including grant aid, on account of both a fall in tax revenue and an increase in 
capital  spending,  while  the  Government  has  aimed  to  cover  the  expansion  by  increased 
foreign grant aid. Over the medium term, Jordan is maintaining its commitment to consolidate 
public  finances  by  focusing  mainly  on  the  expenditure  side  of  the  budget.  In  particular,  the 
Government is considering reforms of the pension system and of the civil service. In 2008, the 
authorities  made  progress  with  reducing  Jordan’s  debt-to-GDP  ratio  thanks  to  special  buy-
back  agreements  signed  with  bilateral  creditors  and  the  Paris  Club.  The  burden  of 
Government  debt  is,  however,  set  to  rise  to  around  70%  of  GDP  in  2009  based  on  current 
projections  which  would  easily  surpass  the  60%  of  GDP  legislative  ceiling.  This  would  put 
further pressure on reducing expenditure in 2010. Current expenditure has been targeted for 
significant cuts with an additional large reduction in capital expenditure. 

As  well  as  a  weak  budgetary  position,  Jordan's  other  main  macroeconomic  vulnerability 
remains the large current account deficit. It is driven by a narrow export base which has meant 
that Jordan has historically suffered from a large trade deficit in goods. While the trade and 
current  account  deficits  narrowed  in  2009  due  to  the  fall  in  commodity  prices,  efforts  to 
permanently expand the export sector are still paramount. The surge in FDI inflows over the 
recent  period  has  been  curtailed  by  a  shortage  of  regional  FDI  on  account  of  falling  oil 

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revenues.  At  the  same  time  there  has  been  wider global  interest,  in  particular  from  Asia,  in 
investing in public-private partnership initiatives in transport and utilities. 

Employment and social policy 

Poverty remains a concern with 10% of the population living with less than 1 JD (EUR 0.96) 
a  day.  The  Coordination  commission  for  social  solidarity  became  operational  in  2009  and 
coordinates  all  programmes  on  poverty  reduction.  Implementation  of  the  2008  poverty 
reduction  strategy  continued  over  the  reporting  period.  Finally,  the  Poverty  division  of  the 
Department  of  statistics,  created  in  July  2009,  carried  out  an  household  expenditure  and 
income survey collecting information on a sample of 13 000 Jordanian families. The outcome 
of  the  survey  is  not  yet  available.  It  is  the  first  poverty  division  in  a  statistical  office  in  the 
Arab World. 

Jordan continued to  face  major  challenges  in  the  field of employment due, in particular, to 
the  demographic  growth.  The  unemployment  rate  for  2009  was  12.9%  with  big  gender  and 
geographical disparities. The Unemployment fund has not yet been created. 

The number of working children between 15 and 17 years old is estimated at 32,000.  

The Ministry of Labour presented in October 2009 a number of recommendations to ensure 
that big investment projects (so called ‘Megaprojects’) translate into massive job creation for 
Jordanians.  Based  on  those  recommendations,  the  Prime  Minister  issued  a  directive  to  the 
various  Ministries  concerned  with  Megaprojects  to  involve  the  Ministry  of  Labour  in  all 
negotiations of contracts. 

After  consultations  with  stakeholders,  the  draft  strategy  on  employment  and  technical  and 
vocational education and training was presented in March 2009 but it has not been adopted.  

In  May  2009,  the  Cabinet  of  Ministers  approved  amendments  to  the  Labour  Law,  notably 
including  domestic  workers  and  agricultural  workers  in  the  law,  imposing  sanctions  against 
violence  and  adding  a  new  article  on  compulsory  work  (trafficking).  These  still  need  to  be 
adopted by the Parliament. 

In the area of social dialogue, the draft law establishing a tripartite committee dealing with 
the  regime  of  approval  of  labour  union  has  not  yet  been  adopted.  The  committee  will  be 
responsible for approving new labour unions and branches but also for reviewing the relevant 
international conventions. The President of the Economic and Social Council was appointed 
in  May  2009.  Additional  efforts  are  needed  to  train  the  staff  of  the  Council.  Four  working 
committees  on  economic,  social,  education  and  labour  affairs  were  created  in  September 
2009. 

In the area of social inclusion and social protection, preparations for the draft social security 
law continued over the reporting period. 

The draft law includes the creation of employment and maternity funds and the extension of 
coverage to a larger group of workers. It includes measures to ensure the sustainability of the 
social security scheme. The Government foresees to adopt the social security law by decree in 
2010.  Jordan  allocated  50  million  JD  (EUR  48.5  million)  to  the  development  of  decent 
housing. The National aid fund, the governmental body in charge of providing social “safety 
nets”, received for the year 2009 an increase of 40% of its budget to address the consequences 
of the global crisis on the more vulnerable population.  

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As  regards  the  promotion  of  women’s  participation  in  social  and  economic  life,  the  female 
participation rate of 15% of the labour market remains amongst the lowest in the world but 
the social security reform reportedly focuses on women, offering increased social rights and 
incentives to private companies to hire them. 

Jordan  continued  over  the  reporting  period  to  implement  sustainable  development  policies 
through its National Agenda and the "Kulluna al Urdun" initiative, resulting in strategies and 
initiatives designed to achieve inter alia environmentally sustainable economic development 
and greater social inclusion. 

4. 

TRADE-RELATED ISSUES, MARKET AND REGULATORY REFORM 

In 2009 bilateral trade between Jordan and the EU slowed down to EUR 2.8 billion with a 
decrease in Jordanian exports to the EU of 40.8% and a reduction of 12.0% of EU exports to 
Jordan..  In  the  reporting  period  tariff  dismantling  proceeded  in  accordance  with  the  EU-
Jordan Association Agreement, including for products listed in Annex IV. In December 2009, 
Jordan  and  the  EU  concluded  negotiations  on  the  text  of  the  Protocol  for  the  Dispute 
Settlement in bilateral trade disputes. During the reporting period Jordan continued working 
on  the  development  of  the  National  Foreign  Trade  Strategy,  National  Investment  Strategy 
(NIS),  Export  Promotion  Strategy  and  Services  Sector  Strategy.  Moreover,  the  national 
strategy  for  transport  adopted  by  the  Government  in  June  2009  includes  a  chapter  on  trade 
facilitation,  covering  such  issues  as  improving  the  institutional  capacity  of  the  National 
committee for transport and trade facilitation, enhancing regional cooperation to support trade 
and ease border-crossing traffic, upgrading customs services and border-crossing facilities and 
developing multimodal and intermodal transport systems. Concerning regional integration, in 
the reporting period Jordan signed a Free Trade Agreement with Turkey in December 2009. 
An action plan to set up a customs union with Egypt was adopted in December 2009. The two 
countries  have  agreed  to  aim  for  a  unified  customs  law,  common  external  tariff  and  to 
harmonise other relevant laws. 

During the reporting period the Jordanian customs authorities continued the implementation 
of  their  Strategic  Plan  for  2008-2010.  The  revised  customs  law,  the  adoption  of  which  was 
expected in 2008, is still discussed at governmental level. The computerisation of the customs 
administration  is  ongoing:  by  the  end  of  the  reporting  period,  95  %  of  all  customs  houses, 
including  the  major  ones,  were  connected  to  the  customs  declaration  processing  system 
ASYCUDA  World.  The  Single  Window  concept  is  now  applied  in  more  than  20  customs 
houses, including the special economic zone of Aqaba and the major border crossing points 
and cargo airports. To enhance inter-agency cooperation, the representative of the Ministry of 
Agriculture, of the Jordan Institution for Standards and Metrology and of the Jordanian Food 
and  Drugs  Administration  working  at  the  border  were  given  access  to  ASYCUDA  and 
opening  hours  of  agencies  concerned  are  streamlined.  There  is  also  permanent  training  and 
strengthening of the capacity of customs officials. Furthermore, work is ongoing in order to 
reduce waiting time at the borders; working hours were extended; a project for the use of an 
‘electronic gate’ is ongoing and Jordan signed a Memorandum of Understanding with Syria 
on the use of the ASYCUDA system. The number of companies participating in ‘The Golden 
List'  programme,  facilitating  trade  for  reliable  traders,  increased  in  the  reporting  period.  In 
July  2009  the  Jordanian  Customs  tightened  the  conditions  necessary  to  obtain  a  customs 
broker licence; by the end of 2009 only two licenses were issued.  

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Concerning  free  movement  of  goods  and  technical  regulations,  Jordan  still  continued  its 
preparations  to  negotiate  an  Agreement  on  Conformity  Assessment  and  Acceptance 
(ACAA)of  Industrial  Products.  In  2009,  a  detailed  and exhaustive  ACAA  roadmap  was 
approved by the Jordanian authorities. Amendments to the law on standards and metrology as 
well  as  a  draft  accreditation  law  have  not  yet  been  adopted  by  the  Parliament.  A  draft 
technical  regulation  on  product  safety  and  a  draft  law  on  product  liability  are  under 
preparation. Some European standards were transposed and draft regulations were prepared in 
some priority sectors (e.g. pressure equipment) in the view of approximation to relevant EU 
directives, although the adoption of the two horizontal laws is necessary to move forward with 
the  process.  A  draft  Consumer  Protection  Law  is  also  being  prepared.  A  draft  market 
surveillance  strategy  was  prepared  and  the  establishment  of  a  National  Market  Surveillance 
Committee is underway. Training of market surveillance inspectors was organised.  

In the area of sanitary and phyto-sanitary issues, Jordan further advanced the preparation of 
a  new  food  law  aiming  at  approximation  with  EU  rules.  Jordan  linked  up  to  the  external 
window of the EU’s Rapid Alert System for Food and Feed. 

As  regards  the  right  of  establishment,  there  are  currently  no  plans  to  adopt  a  regulation 
enabling  100%  foreign  ownership  in  transport  services,  insurance  agent  services,  travel 
agencies and tour operators.  

No progress can be reported on the adoption of the revised company law. In the meantime, an 
amendment of the existing law in 2008 reduced the minimum required capital of the Limited 
Liability  companies from  30,000  JD  to  1,000  JD  (approximately  from  EUR  30,700  to  EUR 
1,000)  and  shortened the  registration  period.  Apart  from  the  three  manuals  of  code  of 
corporate  governance,  the  Companies  Control  Department  plans  to  issue  a  new  code  of 
corporate  governance  manual  for  companies.  Jordan  continued  to  improve  its  business 
environment,  slightly  improving  its  ranking  in  international  surveys  on  the  ease  of  doing 
business.  

An assessment on the impact of liberalising the services sector on the national economy was 
finalised  in  2009.  Jordan  expressed  interest  to  enter  into  bilateral  negotiations  on  the 
liberalisation of trade in services and the right of establishment in 2010. 

In  the  field  of  financial  services,  despite  the  global  economic  and  financial  crisis  in  2009, 
prudent  financial  oversight  and  proactive  supervision  by  the  Central  Bank  of  Jordan  (CBJ) 
shielded  banks  from  exposure  to  troubled  international  banks,  structured  products,  and 
wholesale  financial  markets.  The  CBJ  continues  to  implement  the  Basel  II  principles  for 
effective banking supervision.  

Other key areas 

The Government approved a temporary tax law which entered into force in January 2010. The 
law includes a series of amendments to the income tax system with the purpose of unifying 
several categories of taxes and upgrading the efficacy of tax collection. The new tax law aims 
at making Jordan more attractive for foreign investment by reducing the tax rates applicable 
to trade and industry and by exempting foreign investors from the obligation to pay a 10% tax 
on  profits  transferred  abroad.  The  newly  adopted  law  also  covers  the  improvement  of  the 
administration  of  the  tax  system,  including  voluntary  compliance,  filing,  audit  requirements 
and  the  appeal  system.  In  December  2009  the  Ministry  of  Finance  adopted  a  Department 
Strategic Plan (2010-2014) for the Income and Sales Tax Department outlining the strategic 

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inputs, key activities and annual key performance indicators. The plan’s strategic objectives 
are: increase efficiency and efficacy of the tax management system in the areas of income and 
sales tax; improve voluntary compliance by means of additional tax awareness, transparency 
and increased quality of the tax services; collect sufficient financial resources for the public 
treasury.  

In the field of competition, limited progress was made. The 2004 law amendments are still 
being prepared and the planned establishment of an independent competition commission did 
not take place.  

No  progress  can  be  reported  in  the  field  of  intellectual  property  rights.  The  Patent  Law 
amended in May  2007  was  a  step  towards  Jordan’s  accession  to  the  Patent  Cooperation 
Treaty (PCT).  The  by-laws,  i.e.,  the  trademarks  and  patents  regulations  are  currently  being 
drafted.  Adoption  of  the  patents  regulations  will  enable  the  implementation  of  the  Patent 
Cooperation Treaty.  

Legislation in the public procurement area is being prepared for mid 2010. Jordan continues 
to negotiate the accession to the WTO Government Procurement Agreement , for which the 
adoption  of  a  compatible  procurement  law  will  be  necessary.  Jordan  continued  its  activities 
under the e-procurement programme. The overall objective of the e-procurement programme 
is  to  increase  the  efficiency  and  transparency  of  the  procurement  process  and  to  improve 
services at lower costs.  

In  the  area  of  statistics,  Jordan  cooperated  fully  over  the  reporting  period  in  the  regional 
working group bringing together representatives of the statistical offices of Egypt, Israel, the 
Palestinian Authority and Jordan which aims in particular  at defining a work programme to 
reduce asymmetries in the future. Work continued over the reporting period to reinforce the 
Department of Statistics.  

With regard to public internal financial control, the Ministry of Finance prepared a reform 
strategy document for the period 2010-13 but the detailed scheduling of reform to the internal 
control  system  have  not  yet  been  determined.  Effective  reform  will  require  improved  co-
ordination  with  the  Jordanian  Audit  Bureau  including  definition  of  respective  roles  are 
regards the internal control system and public external audit. 

On enterprise policy, Jordan implemented actively the key areas of the Euro-Mediterranean 
Charter  for  Enterprise.  Jordan  has  progressed  in its  preparations  of  an  enterprise  strategy  in 
the view of streamlining business support activities. There is currently no specific policy on 
Small  and  Medium  Sized  Enterprises  (SMEs).  The  Jordan  Enterprise  Development 
Corporation has many advice and training services for enterprises. Jordan also participates in 
a  pilot  project  on  entrepreneurial  skills  development  in  the  higher  education.  An  export 
promotion strategy is still being prepared.  

5. 

COOPERATION ON JUSTICE, FREEDOM AND SECURITY 

The fourth meeting of the EU-Jordan subcommittee on Justice and Security and the Working 
Group  on  social  affairs,  covering  also  migration  issues,  took  place  in  June  2009.  Both 
meetings allowed Parties to continue to discuss issues of common interest in these areas. 

Cooperation  with  Jordan  on  border  management  progressed  steadily.  While  Jordan 
acknowledges  the  critical  role  migration  management  and  border  control  play  in  combating 

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crime,  it  lacks  qualified  experts  in  immigration  control  and  resources  for  security  and 
inspection  equipment.  Training  on  document  examination,  profiling  and  counter-trafficking 
was  delivered  in  2009  through  EU  assistance  to  officers  and  personnel,  improving  overall 
border  management  efficiency  as  well  as  enhanced  information  and  experience  exchange 
between Jordan and EU Member States. 

In  the  area  of  migration  and  asylum,  by  the  end  of  2009  the  overall  number  of  foreign 
domestic and agricultural workers with legal permits was approximately 335,000. The number 
of workers from Egypt, the Philippines and Indonesia is increasing, as well as the number of 
Bangladeshi workers employed in Qualified Industrial Zones. The large numbers of refugees 
continue to put severe strains on the Jordanian society and infrastructure, particularly on its 
medical  services,  the  education  system  and  water  supply.  The  EU  has  continued  to  provide 
assistance to  Jordan,  with  a  focus on  education for the most vulnerable refugees, water loss 
reduction measures and the resettlement from Jordan of the most vulnerable refugees. 

Jordan ratified the 2003 United Nations Convention against Trans-national Organised Crime 
in April 2009, and acceded to its First Protocol to Prevent, Suppress and Punish Trafficking in 
Persons,  especially  Women  and  Children  in  June  2009.  In  2009  Jordan  adopted  the  Anti-
Human Trafficking Law and formed a national committee responsible for drawing up policies 
and  plans  to  prevent  human  trafficking  and  ensuring  their  implementation.  The  Ministry  of 
Justice  established  a  new  section  to  coordinate  legal  aid  and  protection  for  victims  of 
trafficking as well as training for judges and prosecutors. A five year action plan (2010-15) to 
combat trafficking in human beings was approved in February 2009 focusing on prevention, 
prosecution and protection. Public awareness and cooperation with NGOs form a major part 
of the latter. 60 judges received training on trafficking in human beings in 2009 under the 
auspices of the Ministry of Justice and the Judicial Council.  

With regards to counter-terrorism, during the June 2009 Sub-Committee meeting on Justice 
and  Security,  Jordan  underlined  that  the  EU  should  capitalize  on  Jordan’s  experience  in 
fighting radicalisation and confirmed its willingness to cooperate with the EU to support the 
integration of Muslims in EU Member States, including on the dissemination of the 'Amman 
message' which aims at countering radicalisation by promoting the positive values of Islam.  

In June 2009, Jordan adopted a National Strategy on the fight against drugs, focusing on the 
law  enforcement,  prevention,  harm-reduction  and  rehabilitation  measures.  In  line  with  the 
same,  the  Anti-Narcotics  Department  of  the  Public  Security  Directorate  took  measures  to 
increase public awareness of the drugs phenomenon, in cooperation with government bodies, 
universities,  schools,  youth  clubs,  the  media  and  civil  society  groups.  Counter-narcotics 
cooperation  was  pursued  on  the  basis  of  bilateral  agreements  with  its  immediate  ENP 
neighbours  as  well  as  Hungary,  Iran,  Iraq,  Pakistan,  Romania,  Saudi  Arabia  and  Turkey. 
Jordan  remained  engaged  in  international  cooperation  against  drug  trafficking  through  its 
membership of Unified Arab Law, Interpol, the League of Arab States and the Organisation 
for Social Defence against Crime. In addition, it expressed an interest to join the Council of 
Europe’s  Pompidou  Group  in  December  2009.  The  resources  of  law  enforcement  agencies 
need  to  be  deployed  as  effectively  as  possible  to  take  account  of  existing  and  future 
challenges. 

With regard to the fight against money laundering, a new regulation was passed in July 2009 
to  include  real  estate  agents  and  gold  and  silversmith  wholesale  and  retail  outlets  under  the 
terms  of  the  2007  Law.  Jordan  underwent  its  first  mutual  evaluation  under  MENAFATF  in 
May 2009 providing recommendations on how best to improve its reporting regime beyond 

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the  banking  and  insurance  industry.  Work  commenced  on  the  establishment  of  a  joint 
reporting  data  base  with  customs.  The  Anti-Money  Laundering  Unit  located  within  the 
Central Bank referred 115 cases of suspicious transactions to the Public Prosecutor’s Office 
by the end of 2009.  

Due  diligence,  KYC  (‘know  your  customer’)  and  KYB  (‘know  your  business’)  practices 
continued  implementation  within  financial  institutions  in  line  with  statutory  obligations 
alongside  customised  training  for  judges,  prosecutors  and  lawyers  on  the  applicable  legal 
framework. In the reporting period, Jordan decided to apply for membership of the Egmont 
Group.  

Jordan participated actively in Euro-Med regional programmes on police and justice (Euro-
Med Justice II, Euro-Med Police II and Euro-Med Migration III). In the framework of these 
programmes,  contacts  and  exchanges  were  improved  with  judicial,  police  and  other  law 
enforcement  counterparts  across  the  region  on  areas  such  as  cybercrime,  the  fight  against 
terrorism  and  combating  child  pornography.  While  it  has  not  ratified  any  instruments  under 
the Hague Conference on Private International Law, Jordan participated in the Third Judicial 
Conference on Cross-Frontier Family Law Issues in June 2009 and joined the Working Party 
on Mediation under the Malta Process.  

6. 

TRANSPORT, ENERGY, ENVIRONMENT, THE INFORMATION SOCIETY, RESEARCH AND 
DEVELOPMENT 

A  revised  national  strategy  for  transport  for  the  years  2009-  2012  was  approved  by  the 
cabinet  in  June  2009.  It  includes  recommendations  based  on  goals,  policies  and  work  plans 
designed jointly between stakeholders from the private and the public sectors. The objectives 
are  to  ensure  a  safe,  competitive  and  environmentally-friendly  transport  sector  and  to 
substantially  increase  the  transit  traffic,  as  well  as  to  transform  Jordan  into  an  international 
hub for the region. The Ministry of planning fixed the objective for the revenues of the transit 
traffic to represent 5 % of GDP in 2017 against less than 2% presently.  

In line with this revised strategy Jordan intends to establish a single regulatory body for land 
transport  (passenger,  railway  and  road  freight),  responding  to  the  parliamentary  request  to 
rationalize  institutions.  The  Government  declared  its  intention  to  develop  the  use  of  public-
private partnership arrangements to attract private capital investment into development of key 
infrastructure  and  public  services.  In  the  rail  sector,  a  major  railway  network  project 
interconnecting  the  railway  network  of  the  Gulf  Cooperation  Council  countries,  the  Middle 
East ports, Syria and Israel is at an early stage of preparation. In Jordan, the core of the project 
is the construction of a new dryport at the transport junction in Al-Mafraq. The study on the 
strategic  development  of  the  Jordanian  railway  system  has  been  prepared;  a  transaction 
advisor  is  assisting  in  the  implementation  of  required  investments  in  cooperation  with  the 
private sector in the form of public private partnerships. 

In  the  aviation  sector,  the  revised  national  transport  strategy  calls  for  the  completion  of  the 
regulatory framework of the sector and the enhancement of the civil aviation safety & security 
standards  in  Jordan.  Under  the  revised  strategy  Jordan  will  continue  to  implement 
liberalization  policies  while  preserving  the  interests  of  Jordanian  airline  companies.  The 
authorities  and  the  European  Commission  continued  negotiations  in  2009  on  a  Euro-
Mediterranean aviation agreement that will ensure the establishment of common standards in 

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the  field  of  air  transport  and  the  progressive  opening-up  of  the  markets.  After  the  reporting 
period, the agreement was initialled (March 2010). 

The  main  challenge  for  maritime  transport  is  to  restructure  the  port  sector,  in  particular  to 
review the market related regulations. The revised national transport strategy recommends a 
review  of  all  the  aspects  related  to  port  and  shipping  in  order  to  improve  the  overall 
efficiency.The  focus  is  on  integrating  maritime  transport  in  the  multimodal  and  logistics 
chains. 

On energy, the EU and Jordan consolidated their cooperation including in the context of the 
2007 Joint Energy Declaration. Jordan, an energy dependent country, pursued sector reform 
by implementing the energy components of the National Social and Economic Development 
Programme for 2009-2011 and the energy master plan for 2007-2020.  

The  draft  integrated  energy  and  minerals  law,  which  includes  establishment  of  an  energy 
regulator,  was  taken  back  from  Parliament  in  December  2009  for  amendments  tackling 
minerals and oil refineries. Previously part of the integrated energy and minerals law, a new 
Renewable  Energy  Law  was  passed  as  temporary  law  in  January  2010.  In  the  oil  sector,  in 
September 2009, the Government gave, exclusive concession rights (with guaranteed prices) 
to Jordan Petroleum Refinery Company with a view to expanding and upgrading the refinery. 
Jordan  continued  to  work  on  expanding  independent  power  production  and  reducing 
electricity  network  losses.  Jordan  pursued  development  of  indigenous  gas  and  oil  shale 
resources by signing agreements with private investors. 

through  Jordan,  should  become  an 

Jordan stated its plan to play a role in the EU’s energy security. Among other things, the Arab 
gas  pipeline,  passing 
the 
implementation  of  the  plan.  In  this  context, Jordan  started  a  study  regarding  a  possible  link 
between  the  Risha  gas  field  and  Iraqi  gas  resources.  It  continued  to  assess  possibilities  to 
introduce  gas  distribution  for  households.  Jordan  pursued  work  towards  regional  electricity 
interconnection.  It  developed  plans  to  upgrade  the  undersea  cable  with  Egypt,  completed  a 
feasibility study on an additional link with the West Bank and reinforced the interconnection 
with Syria. Jordan pursued to assess oil import options inter alia by studying the feasibility of 
an Aqaba-Zarqa pipe. Oil imports from Iraq were re-launched.  

important  factor 

in 

Jordan sustained its efforts to promote energy efficiency and use of renewable energy sources. 
It  launched  a  study  for  a  first  concentrating  solar  power  plant  in  the  context  of  the 
Mediterranean Solar Plan. It developed other solar plans and stated its aim to equip 30% of 
household with solar water heating by 2020. Jordan wishes to install 600 MW of wind power 
by 2015 and launched several projects in this area.  

In  2009,  Jordan  made  further  preparations  for  constructing  of  nuclear  power  plants.  A 
consultant was selected for a study regarding the possible location of the plant. A tender was 
launched to select an adviser for the preconstruction phase. Jordan signed an agreement with 
investors  in  view  of  the  exploitation  of  domestic  uranium.  The  country  ratified  the 
Convention on nuclear safety, which entered into force in September 2009. It acceded to the 
Convention  on  the  Physical  Protection  of  Nuclear  Material,  which  entered  into  force  in 
October 2009. Amman University continued to prepare the construction of a nuclear research 
reactor and worked on the development of nuclear expertise. In July 2009, the EU and Jordan 
signed a project, under the Instrument for nuclear safety, to developand strengthen the Jordan 
Nuclear Regulatory Commission.  

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In  the  field  of  climate  change,  Jordan  prepared  its  Second  National  Communication  to  the 
UN  Framework  Convention  on  Climate  Change,  including  a  greenhouse  gas  inventory, 
vulnerability assessment and adaptation measures. The participation to the national committee 
on  climate  change  was  upgraded  to  the  level  of  Secretary  Generals  of  sector  ministries  in 
order to further promote mainstreaming of climate issues. Jordan continued to prepare Clean 
Development  Mechanism  (CDM)  projects,  even  if  no  new  projects  were  registered  at  UN 
level,  leaving  the  overall  number  of  registered  projects  at  one.  Jordan  associated  itself  with 
the Copenhagen Accord and provided information on actions that it will implement.  

The Ministry of Environment continued to implement the strategic plan for 2007-2010, inter 
alia  with  regard  to  environment  integration  and  strengthening  of  environmental  impact 
assessment  procedures.  The  national  environment  action  plan  was  reviewed.  The  legislative 
to 
framework  continues 
implementing  legislation.  In  this  respect,  Jordan  is  planning  a  revision  of  its  Environment 
Framework Law.  

to  require  further  development, 

in  particular  with  regard 

New legislation on monitoring and inspections and the environment fund was adopted in 2009 
as  along  with  a  regulation  on  protecting  the  environment  from  pollution.  Jordan  continued 
preparing  new  legislation  on  air  quality,  water  and  waste  management  and  environment 
liability. The Jordan Water Strategy (2008-2022) was adopted in 2009 and an implementation 
plan is being prepared. Work continued on developing a policy strategy on solid waste as well 
as policy  on waste streams.  Continued attention is required to implement existing strategies 
and plans and to further enhance monitoring and enforcement. 

Jordan  took  further  steps  to  pursue  the  decentralisation  of  environment  responsibilities. 
Further  strengthening  of  administrative  capacity  is  still  a  major  challenge,  and  coordination 
between  authorities  involved  also  requires  attention.  Reform  of  the  water  sector  policy  and 
institutional set-up continued. The draft water sector law will redefine the institutional set-up 
and 
and 
commercialisation of the water services sector is advancing.  Monitoring and auditing of the 
sector  are  being  enhanced.  Some  further  activities  took  place  to  promote  integration  of 
environment  considerations  into  other  policy  sectors,  such  as  transport  and  tourism.  Some 
steps were taken to revise the permit system. 

regulatory  Commission.  Decentralisation 

the  water 

establish 

sector 

The  state-of-the  environment  report,  finalised  in  2008,  has  still  not  been  published.  Jordan 
continued  to  carry  out  some  activities  to  inform  and  involve  the  public.  The  Ministry  is 
planning  to  undertake  a  pilot  assessment  that  could  set  an  example  for  future  work  on 
strategic environmental assessment. 

Implementation  of  ratified  international  and  regional  conventions  and  protocols  requires 
particular  attention.  Jordan  continued  to  participate  in  the  Horizon  2020  Initiative,  in  the 
preparations for a strategy for water in the Mediterranean (which failed to get approval at the 
recent ministerial meeting of the Union for the Mediterranean) and in the EU Water Initiative. 
Cooperation and exchanges of information took place between the European Commission and 
Jordan, 
the  Mediterranean  region  and 
environmental reporting. 

including  on  water,  pollution  reduction 

in 

In  the  field  of  civil  protection,  Jordan  took  part  in  a  new  phase  of  activities  of  the  Euro-
Mediterranean  Programme  for  the  Prevention,  Preparedness  and  Response  to  Natural  and 
Man-Made  Disasters  that  started  in  2009,  continuing  the  process  of  strengthening  civil 
protection  activities  in  the  region,  enhancing  capacity  at  regional,  national  and  local  levels, 

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and  promoting  institutional  cooperation.  Hereby,  further  steps  were  taken  to  bring  Jordan 
closer  to  the  European  Civil  Protection  Mechanism,  contributing  at  the  same  time  to  the 
development  in  the  region  of  a  civil  protection  culture  based  on  an  integrated  approach 
covering disaster prevention, preparedness and response. 

The  Ministry  of  Information  and  Communications  Technology  (MoICT)  launched  a  new 
programme to increase the spread of Internet in remote areas. The programme is based on the 
national  broadband  network  implemented  by  the  Ministry  to  connect  schools,  government 
departments, hospitals and health centres via high capacity fibre optic cables. 

In cooperation with MoICT, the Ministry of Interior launched the Civil Status and Passports 
e-service  which  allows  display  of  and  access  to  the  civil  records  required.  This  e-service  is 
part of a group of e-services finalised in the Tax, Land and Surveys, departments, Ministry of 
Trade and Industry and Ministry of Foreign Affairs. 

The  Telecommunication  Regulatory  Commission  is  preparing  the  Strategic  Plan  for  2010-
2012,  the  main  goals  of  which  have  been  approved.  As  liberalisation  of  the  900  MHz  and 
1800 MHz spectrum bands is an important element of the Strategic Plan 2010-2012 a public 
consultation  was  launched  in  September  2009  with  a  view  to  developing  a  best-practice 
oriented plan for this liberalisation. In August 2009 a first 3G (third generation) licence was 
granted, and further 3G licences are planned to be granted in 2011. 

The safeguards guaranteeing the independence of the Jordanian Audiovisual Commission set 
up  in  2006  remain  modest  by  European  standards.  The  Ministry  of  information  and 
communications  technology  prepared  a  draft  law  which  included  proposals  to  merge  the 
Audiovisual  Commission  with  the  Telecommunication  Regulatory  Commission.  The  draft 
law was circulated to the bodies concerned for comments.  

The Science and Technology agreement between the EU and Jordan was signed in November 
2009. The agreement is expected to accelerate the cooperation in fields of common interest, 
where  EU  and  Jordan  are  pursuing  research  and  development  activities  in  science  and 
technology.  As  reported  last  year,  a  joint  committee  will  be  established  to  oversee 
implementation of the agreement and regularly discuss the future orientations and priorities of 
research policies and research planning in Jordan and in the European Union.  

Although Jordan was quite active in the EU Framework Programmes over the last few years, 
awareness  of  the  Programmes  could  still  be  improved.  Jordan  continued  to  increase  the 
numbers  of  applications  submitted  to  the  7th  Framework  Programme  (FP7),  125  Jordanian 
applicants  submitted  a  proposal  and  20  were  retained,  receiving  EUR  1.46  million  of  EU 
contribution. 

The Scientific Research Fund, under the responsibility of the Ministry of higher education and 
scientific research, came into operation and a total of about EUR 15 million was committed in 
2009. Development of applied research in Jordan and stronger links between research and the 
private  sector  remain  a  high  priority  for  the  country  although  there  is  still  a  need  clearly  to 
define  the  roles  and  responsibilities  of  the  different  stakeholders  in  applied  research  and 
innovation and to encourage coordination and cooperation between them.  

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7. 

PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH 

In  the  area  of  education,  the  first  phase  of  the  Education  Reform  for  the  Knowledge 
Economy (ERfKE) project ended in December 2009, resulting in the definition of a five year 
strategic  development  plan  (2009-13)  and  development  of  new  curricula,  teaching  and 
learning  resource  materials  alongside  infrastructural  improvements  and  expansion.  The  start 
of  the  follow-up  ERfKE  II  project  was  postponed  to  early  2010  due  to  the  fiscal  situation. 
However, the Ministry of Education is resolved to implement the five year plan with regard to 
key  areas  such  as  development  of  teaching  and  learning  and  investment  in  early  childhood, 
vocational and special education. The reform aims to improve quality, transform educational 
provision  and  orient  educational  practice  and  outcomes  to  the  needs  of  the  knowledge 
economy. In addition, an amendment to the civil service law in November 2009 strengthened 
disciplinary  measures  against  teachers  and  officials  administering  corporal  punishment  in 
schools,  public  agencies  and  rehabilitation  centres.  In  the  Ministry  of  Education  started  a 
remedial programme for 16,000underperforming students in key competences in April 2009.  

In  vocational  training,  the  Employment  and  Technical  and  Vocational  Education  and 
Training  Council  convened  several  times  during  2009  to  review  the  activities  of  the 
employment  and  TEVT  Training  Fund  in  terms  of  its  effectiveness  in  supporting  training 
actions and programmes. However, the December 2009 Cabinet decision to cancel the Fund’s 
traditional financing mechanism (1% training levy on companies) and replace it with central 
funding  and  a  levy  on  foreign  workers’  permits,  raises  questions  as  to  the  latter’s 
sustainability with consequent risks for overall reform. In addition, coordination between the 
Ministries of labour, education and higher education remains a major challenge. 

The  Centre  for  Accreditation  and  Quality  Assurance  commenced  work  in  July  2009  and 
developed an action plan and built up its organisational planning capacity with the technical 
assistance of the European Training Foundation (ETF) (see also section 8). In October 2009, 
preparatory work on qualifications frameworks for two pilot sectors, tourism and water, also 
began with ETF support, in cooperation with the Centre. As was the case in 2008, coordinated 
efforts to reduce the gap between educational attainment and labour market requirements will 
require  integrating  reform  concepts  such  as  quality  assurance,  qualification  frameworks, 
information systems and centre of excellence into policy documents and strategies. Matching 
operational  programmes  with  reform  choices  will  also  require  structured  resource  planning. 
Developing reform capacity at the level of private sector decision-makers and social partners 
also needs further investment. 

The Parliament adopted two new reform laws in September 2009 on Higher Education and 
Scientific  Research  and  Jordanian  universities,  granting  the  boards  of  public  and  private 
universities  more  autonomy  over  management  decisions  and  appointments  while  also 
amending existing legislation on the accreditation of higher education institutions.  

Jordan is benefitting from four projects under the second Call for Proposals under Tempus IV. 
Curricula reform has advanced through the development of new master’s degree programmes 
in  several  fields  including  community  health  nursing,  special  education,  water  resources 
management  and  cultural  heritage.  Similar  advances  were  made  in  undergraduate  degree 
programmes  in  the  applied  sciences  while  links  and  cooperation  with  European  universities 
have  increased  through  Tempus  investment.  Work  remains  to  be  done  on  development  of 
higher education policy. 

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Only one Jordanian student received an Erasmus Mundus Master Course scholarship but 35 
students  and  academics  received  mobility  grants  for  the  2009-10academic  year.  Jordanian 
universities are encouraged to participate in the Jean Monnet programme. 

Jordan  continued  promoting  the  benefits  of  youth  exchanges,  voluntary  service  and 
intercultural  dialogue  in  the  context  of  regional  cooperation.  In  this  connection,  Jordanian 
young people and youth organisations participated in youth exchanges, voluntary service and 
cooperation activities in the field of youth work and informal education through the Youth in 
Action and Euro-Med Youth programmes.  

In  the  area  of  culture,  Jordan  participated  actively  at  regional  level  in  the  new  Euro-Med 
Heritage IV programme. Cultural policy however remains weak as it is planned in the context 
of support for tourism development, thereby lacking strategic focus in terms of development 
of  Jordan’s  cultural  potential.  Jordanian  cultural  organisations  participated  in  the  Call  for 
Proposals of the 2009 ENP Special Action under the Culture Programme. 

Jordan  sustained  health  sector  reform,  in  particular  by  implementing  the  health  ministry’s 
Strategic  Plan  2008-2012  and  starting  to  implement  of  the  2008  Public  health  law.  The 
Government plans to concentrate on strengthening the institutional performance management 
and  related  monitoring  and  assessment  systems,  as  well  as  to  explore  possibilities  to 
rationalise  expenditure,  specifically  on  drugs,  which  constitute  34%  of  total  health 
expenditure.  However,  the  monitoring  and  evaluation  system  for  strategy  implementation 
needs to be strengthened.  

The reform objectives remained enhanced access to health care, more quality and full health 
insurance  coverage.  It  reinforced  the  institutional  structures  by  reorganising  the  Ministry  of 
Health  and  by  strengthening  the  High  Health  Council.  Jordan  took  measures  to  combat 
influenza A (H1N1) including through a vaccination campaign. In 2009, in the context of the 
influenza  A  epidemic,  the  European  Commission  and  Jordan  established  communication 
channels  for  the  exchange  of  epidemiological  information  in  the  event  of  a  health  crisis.  In 
October  2009,  Jordan  participated  in  the  newly  established  EU  enlarged  health  information 
committee. It pursued participation in the ‘Episouth’ network on communicable diseases for 
the EU, Mediterranean and Balkan countries. 

8. 

FINANCIAL COOPERATION – 2009 KEY FACTS AND FIGURES 

The  European  Neighbourhood  and  Partnership  Instrument  (ENPI)  financial  envelope  for 
Jordan  under  the  National  Indicative  Programme  2007-2010  is  EUR  265  million.  The 
programme is geared towards supporting the achievement of key policy objectives as outlined 
in  the  Action  Plan  and  pursues  four  priorities:  political  reform,  democracy,  human  rights, 
justice and good governance; trade and investment development; sustainability of the growth 
and  development  process;  institution  building,  financial  stability  and  support  for  regulatory 
approximation. 

The  implementation  of  the  measures  covered  by  the  2007  and  2008  Annual  Action 
Programmes  is  underway.  Substantial  results  were  already  achieved  in  the  reform  of  the 
public  finances  management  system.  Significant  progress  was  also  made  in  the  education 
system reform through a strong budget support of the EU, supported already since 2006. The 
Services Modernisation Programme which aims at supporting the services sector, the first of 
several  programmes  in  this  area,  is  now  also  well  underway,  as  well  as  the  following 

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programmes:  enterprise  and  export  development,  justice  reform  and  good  governance,  trade 
and transport facilitation, as well As a specific programme (twinning and technical assistance) 
dedicated  to  support  the  Jordanian  administration  in  the  implementation  of  Action  Plan.  In 
2009, the European Commission programmed assistance for Jordan for a total amount of EUR 
68  million.  The  2009  Annual  Action  Programme  (AAP)  focused  on  four  priority  areas: 
employment and technical vocational training; capacity building for municipalities; renewable 
energy;  and  institutional  capacity  building.  Within  this  envelope,  EUR  10  million  was 
allocated  to  the  rational  and  sustainable  use  of  alternative  energy  resources  with  a  focus  on 
Wind  Energy  and  Concentrated  Solar  Power.  EUR  3  million  was  provided  to  build  the 
capacity  of  Jordanian  Municipalities  as  a  continuation  of  the  EU  support  to  the 
decentralisation  reform  Jordan  is  undertaking.  EUR  20  million  funding  was  devoted  to 
support  the  Jordanian  administration  in  the  context  of  the  implementation  of  the  EU-Jordan 
Action  Plan.  The  fourth  and  largest  programme  in  the  2009  Annual  Action  Programme 
consisted of a Sector Budget Support Programme of EUR 35 million, focusing on supporting 
Employment  and  Technical  Vocational  Education  and  Training  (E-TVET).An  indicative 
financial envelope of EUR 223 million will be available to support co-operation activities in 
Jordan  in  period  2011-2013,  based  on  a  European  Commission  decision  of  March  2010.In 
addition to the bilateral allocation, Jordan also benefited from cooperation activities financed 
under  the  ENPI  multi-country  and  regional  programmes,  as  well  as  under  thematic 
programmes,  such  as  the  European  Instrument  for  Democracy  and  Human  Rights  (EIDHR) 
and  the  DCI  Thematic  programmes:  Migration  and  Asylum  Programme,  Non-State  Actors 
and  Local  Authorities  in  Development  (NSA/LA)  and  Investing  in  People.  Jordan  also 
participates  in  the  Cross-Border  Cooperation  (CBC  Mediterranean  Sea  Basin  programme 
(EUR 173,607 million for the whole programme in the period 2007-13). The priorities of the 
programme are: social-economic development; renewable energy; cultural dialogue and local 
development.Furthermore, in order to address the needs of Iraqi refugees in the Zarqa area, a 
programme of EUR 12 million, which aims at improving water distribution, is currently being 
implemented. In 2009, the European Investment Bank signed lending operations in Jordan for 
an amount of EUR 166 million for the construction of a water pipeline from Disi to Amman 
in order to address the problem of water scarcity. 

In terms of coordination, the EU Delegation to Jordan continued its close contacts with other 
donors  and  with  the  Jordanian  Ministry  of  Planning  and  International  Co-operation.  The 
Delegation  is  actively  involved  in  the  work  of  the  Donors  and  Lenders  Consultation  Group 
(DLCG) and chairs several of its sector working groups. The Delegation has also established 
an  internal  EU  Development  Cooperation  Group  (EUDCG),  which  meets  regularly  to 
improve common strategies, coherence, information exchange and the visibility of the EU and 
Member State programmes.  

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