Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on providing macro-financial assistance to the Hashemite Kingdom of Jordan
Date: 2024-04-08
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EU aid, EU loan, European neighbourhood policy, Jordan, economic reform, economic stabilisation, financial aid, macro-financial assistance

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   EUROPEAN COMMISSION  Brussels, 8.4.2024  COM(2024) 159 final 2024/0086 (COD)  Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on providing macro-financial assistance to the Hashemite Kingdom of Jordan {SWD(2024) 89 final}  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Amid increasingly challenging global economic developments, Jordan’s economic growth has 
remained overall stable at around 2% in the last  5 years (excluding a marked contraction in 
the COVID-19 pandemic year of 2020). However, this growth performance was weaker than 
that  of  regional  peers  and  not  strong  enough  to  lower  the  very  high  unemployment  or  help 
ease the considerable public debt burden. Instead, fiscal pressures have remained high, with 
persistent budget deficits further adding to the already high public debt, which reached 88.7% 
of  GDP  (excluding  holdings  by  the  Social  Security  Corporation)  in  2023.  Having  remained 
relatively contained in the last 5 years, consumer price inflation slowed to 1.6% at the end of 
2023  as  a  result  of  the  monetary  tightening  policy,  among  other  factors.  The  high  interest 
rates,  however,  are  expected  to  weigh  on  economic  activity  going  forward.  On  the  external 
side, Jordan experiences chronic external deficits (7.1% of GDP current account deficit in H1 
2023),  driven  by  the  persistent  deficit  in  trade  in  goods,  which  reflects  the  economy’s 
dependence on energy, food and machinery imports in conjunction with a weak export base. 

A broadly appropriate policy response and large-scale international support have so far helped 
the  country  to  preserve  macroeconomic  stability,  but  the  persistent  economic  challenges 
reflected  in  external  and  fiscal  deficits  make  the  economy  vulnerable  to  external  shocks.  In 
past  years,  Jordan  has  taken  initiatives  to  modernise  its  economy,  most  recently  with  the 
Economic Modernisation Vision of 2022, to attract foreign investment  and promote growth, 
also  supported  by  the  reform  agendas  underpinning  the  earlier  macro-financial  assistance 
(MFA) operations. 

These reform efforts were undertaken at a time when Jordan faced multiple external shocks, 
in particular the war in neighbouring Syria and the major influx of refugees that followed, the 
COVID-19 pandemic, Russia’s fullscale war of aggression against Ukraine, increased security 
challenges along the Syrian border and, most recently, the war in Israel/Gaza and ensuing Red 
Sea crisis impacting important trade routes.  

In  light  of  the  multiple  external  shocks  and  its  importance  to  ensure  stability  in  the  region, 
Jordan received substantial support in various forms from its international partners in the past 
decade. This includes three MFA programmes since 2014 for a total of EUR 1 080 million; 
four  consecutive  International  Monetary  Fund  (‘IMF’)  programmes  since  2012;  and 
substantial US support in the form of grants. The third and latest MFA  operation (MFA-III, 
2020-2023)  with  an  initial  amount  of  EUR  500  million  was  adopted  in  January  2020  and 
subsequently (May 2020) topped up by EUR 200 million in response to the socio-economic 
fallout  of  the  COVID-19  pandemic  in  2020.  MFA-III  was  successfully  concluded  in  May 
2023, having supported reforms on public finance management, the utilities sector, social and 
labour  market  policy,  and  governance,  where  overall  positive  even  if  somewhat  uneven 
progress was achieved. 

In this context and given Jordan’s continued sizeable financing needs and the many different 
challenges  faced  by  the  country,  the  Jordanian  authorities  requested  a  follow-up  MFA 
operation  of  EUR  700  million  on  8 October 2023  in  a  letter  to  Commissioner  Gentiloni, 
where  they  specifically  referred  to  challenging  global  economic  prospects,  restrictive  credit 
conditions  due  to  monetary  tightening,  high  energy  costs,  inflationary  pressures  and  the 
burden  of  the  Syrian  refugee  crisis.  The  call  for  further  assistance  comes  in  a  situation  of 
increased  uncertainty  and  regional  instability,  not  least  due  to  the  outbreak  of  the  war  in 
neighbouring Israel and Gaza the day before the letter was sent.  

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After  an  in-depth  assessment  of  the  political  and  economic  situation  in  Jordan,  the 
Commission is submitting to the European Parliament and the Council a proposal to provide a 
new MFA of up to EUR 500 million to the benefit of Jordan. The proposed MFA would help 
Jordan  cover  part  of  its  residual  external  financing  needs,  in  the  context  of  the  new  IMF 
programme, and would by creating the necessary fiscal space also help safeguard the ongoing 
reform progress. 

The disbursement is planned to take place in three instalments, with the release of instalments 
strictly linked to progress with the implementation of both the IMF programme and a number 
of additional policy measures to be agreed between the Commission and the authorities and 
listed  in  a  Memorandum  of  Understanding  (MoU).  The  MoU  could,  in  principle,  include 
policy reforms addressing economic governance, including Public Finance Management and 
tax administration; social and labour market policy; and governance and fight against fraud, 
corruption and money-laundering. The implementation of the proposed operation is expected 
to  go  hand-in-hand  with  the  support  under  budgetary  operations  financed  by  the 
Neighbourhood,  Development  and  International  Cooperation  Instrument-  Global  Europe 
(‘NDICI-GE’). 

As further explained in the Commission staff working document accompanying this proposal, 
the Commission considers, based also on the assessment of the political situation made by the 
European  External  Action  Service  (‘EEAS’),  that  the  political  and  economic  pre-conditions 
for the proposed MFA operation are satisfied. 

• 

General economic context 

Economic growth has remained stable albeit relatively low (compared to regional peers), over 
the past years, and is expected to only slowly pick up. Following the contraction during  the 
COVID-19  pandemic,  GDP  recovered  at  2.2%  growth  in  2021  and  2.5%  in  2022;  growth 
expectations for 2023 were slightly revised downward to 2.6% following the outbreak of the 
Israel-Gaza war in  Q4.  The sectors that  contributed most to  economic growth  in  2023 were 
agriculture, manufacturing, tourism and mining, reflecting the still strong role of these sectors 
in  the  economy  but  also  the  rebound  in  tourism.  Major  structural  challenges  remain  to 
boosting  economic  growth,  in  particular  in  the  area  of  private  sector  development,  where 
deficiencies  in  the  business  environment,  access  to  finance,  labour  market  flexibility  and 
public administration persist. 

Economic growth has not been strong enough to lower the very high unemployment. Bringing 
down the traditionally high unemployment rate and increasing labour market participation are 
important structural challenges in Jordan. In 2023, the unemployment rate slightly decreased 
to  22.3%  in  Q3-2023  (22.9%  in  2022).  Unemployment  remains  high  especially  for  women, 
youth and university graduates, with women’s labour force participation rate (around 14% in 
2023) being one of the lowest world-wide.  

Inflation decelerated considerably in 2023, with average inflation at 2.1% in 2023 (down from 
4.2% in 2022). Price increases levelled out in response to the tightening of monetary policy 
and lower global commodity prices. The Central Bank of Jordan (CBJ) raised its policy rates 
in  10  steps  from  2.5%  in  March  2022  to  7.5%  in  July  2023.  The  CBJ  decisions  were 
necessary  given  the  Jordanian  Dinar’s  peg  to  the  USD,  to  be  in  line  with  the  US  Federal 
Reserve’s monetary tightening and avoid pressures on capital flows, and indeed contributed to 
the moderation of inflationary pressures. 

The  fiscal  situation  remains  challenging,  with  structurally  high  deficits  reflecting  a  narrow 
revenue  base  (domestic  tax  revenue  mobilisation  at  16%  of  GDP,  compared  to  Tunisia  at 
23.3% of GDP and Morocco at 21.4% of GDP) feeding further into the already high level of 

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debt. The fiscal deficit stood at 5.1% for the first 8 months of 2023 (4.6% of GDP in 2022), 
roughly  in  line  with  the  average  fiscal  deficit  of  the  past  5  years.  Public  sector  revenue 
increased by 5.4% during the first 8 months compared to the same period a year earlier, on the 
back of higher income and profit tax collection. Total expenditure grew by 2.9%, driven by 
higher interest payments, military expenditure and compensation of civil sector employees. In 
April 2023, Jordan successfully issued Eurobonds for USD 1.25 billion, despite the tightening 
of  global  financing  conditions.  The  issuance  has  a  maturity  of  6  years  at  7.5%  and  was 
oversubscribed six times, allowing the government to increase the initially sought amount.  

Total  public  sector  debt  (excluding  debt  holdings  by  the  Social  Security  Corporation,  SSC) 
remained at a very high 88.7% of GDP in 2023, slightly down from 90.8% of GDP in 2021, 
as  nominal  GDP  growth  during  these  2  years  outpaced  the  increase  in  debt.  Adding  debt 
holdings  by  the  SSC,  public  sector  debt  reached  111.5%  of  GDP  in  2023,  after  having 
continuously increased over the past decade (from 84.5% of GDP in 2013). In its report on the 
new Extended Fund Facility (EFF) arrangement with Jordan (January 2024), the IMF assessed 
Jordan’s  public  debt  level  as  sustainable,  stating  further  that  while  debt  sustainability  risks 
remained, the authorities’ policy efforts and the development partners’ ongoing commitment 
to Jordan would constitute important safeguards.  

On  the  external  side,  Jordan  experiences  chronic  external  deficits,  driven  by  the  persistent 
deficit in trade in goods, which reflects Jordan’s dependence on energy, food and machinery 
imports  in  conjunction  with  a  weak  export  base  relying  on  low-value  added  sectors.  Main 
export  items  over  the  past  years  have  been  phosphoric  acid,  potash  and  phosphates,  which 
have benefited  from  increased demand following Russia’s invasion of Ukraine. Overall, the 
current account deficit averaged around 6.5% of GDP in the past 5 years, with larger deficits 
in  2021-2023.  Most  recently,  the  current  account  deficit  narrowed  to  7.1%  of  GDP  in  H1 
2023  (from  13%  in  H1  2022,  8.8%  of  GDP  in  2022),  on  the  back  of  an  increased  trade  in 
services  surplus  driven  by  increasing  tourism  revenue.  Traditionally  strong  remittances 
(around 8% of GDP over the past years) from abroad have also contributed to mitigating the 
current  account  deficit.  The  CBJ’s  gross  foreign  reserves  have  remained  strong,  whilst 
decreasing slightly in the period 2021-2023 to USD 17.3 billion at the end of September 2023, 
covering an estimated 7.6 months of imports of goods and services. 

The IMF, in its January 2024 forecast, expects economic growth to stand at 2.6% in both 2023 
and 2024. Its previous forecast was revised slightly downwards following the outbreak of the 
war in Israel/Gaza. However, the war implies a very substantial downside risk to the outlook, 
in particular due to the increased level of uncertainty in the region and the possible impact on 
the  important  tourism  sector,  with  cancellations  by  tourists  from  advanced  economies,  who 
represent  a  third  of  tourism  receipts.  Domestic  demand  may  be  negatively  impacted  by 
consumer sentiment and a boycott of Western brands, which reportedly could be weighing on 
value added tax revenue. After the Hamas terrorist attack of 7 October 2023, sovereign bond 
spreads  for  Jordan  temporarily  increased  but  were  back  to  pre-war  levels  4  weeks  later.  A 
similar  development  was  observed  for  oil  prices.  The  ongoing  Houthi  attacks  on  cargo  and 
energy vessels in  the Red Sea hinder vessel traffic to  Asia, impacting Jordan’s exports –  in 
particular  exports  of  minerals  and  chemicals,  and  imports.  Jordan’s  energy  imports  are  less 
affected, as they are mostly transported via pipelines locally. 

Given the significant public debt burden, the fiscal consolidation course needs to continue, as 
supported  by  the  new  IMF  programme,  with  a  view  to  narrowing  the  budget  deficit  by 
broadening  the tax base  and improving the efficiency and targeting of social measures. The 
inflation rate in Jordan has dropped to low levels and is expected to remain low in 2024, also 
due to  the monetary tightening of the  CBJ. The  resulting  high  interest  rates are expected to 

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curb  credit  growth  to  the  private  sector.  Fiscal  and  external  deficits  are  expected  to  remain 
high, reflecting the underlying structural challenges to sustainably improve fiscal revenue and 
the trade deficit. At the same time, since Jordan imports most of its energy and a large share 
of its food, including  essential cereals,  the slower growth of global commodity  prices helps 
ease  pressures  on  fiscal  and  external  balances.  The  Red  Sea  crisis  is  expected  to  weigh  on 
exports of fertilisers and phosphates, while the war and general regional instability is expected 
to  lessen  tourism  revenue;  in  normal  times,  both  sectors  considerably  alleviate  external 
pressures. 

Consistency with existing policy provisions in the policy area 

• 
Decisions (EU) 2020/331 and (EU) 2020/7012 on providing macro-financial assistance to the 
Hashemite Kingdom of Jordan were adopted by the European Parliament and the Council on 
15 January 2020  and 25 May 2020, respectively.  The  overall  assistance of EUR  700 million 
(EUR 500 million under Decision (EU) 2020/33 and EUR 200 million under Decision (EU) 
2020/701) was fully disbursed during the period 2020-2023. 

• 

Consistency with other EU policies 

The  proposed  MFA  is  consistent  with  the  EU’s  commitment  to  support  Jordan’s  economic 
and political situation. It is consistent with the principles governing the use of the instrument 
of  MFA,  including  its  exceptional  character,  political  preconditions,  complementarity, 
conditionality and financial discipline. 

The  EU  and  Jordan  enjoy  excellent  relations  and  have  been  linked  by  an  Association 
Agreement  since  2002  (advanced  status  since  2010)3.  In  2022,  they  signed  the  Partnership 
Priorities4  which  aim  to  strengthen  cooperation  even  further  and  will  guide  the  partnership 
until 2027. The Partnership Priorities are based on common values and dialogue, and promote 
reforms in areas such as good governance, the rule of law, human rights, social cohesion and 
equal  opportunities  for  all,  non-discrimination,  environmental  and  climate  protection, 
macroeconomic stability and the business environment.  

The  proposed  MFA  is  in  line  with  the  objectives  of  the  European  Neighbourhood  Policy 
(ENP).  It  contributes  to  support  the  European  Union’s  objectives  of  economic  stability  and 
development  in  Jordan and, more broadly,  resilience in  the South  European neighbourhood. 
The  EU  MFA  would  complement  the  grants  mobilised  under  the  NDICI  and  other  EU 
programmes  and  instruments  and,  in  particular,  the  conditions  envisaged  under  the  budget 
support  packages  being  implemented  by  the  EU  under  the  current  multiannual  financial 
framework (MFF) 2021-2027. By supporting the adoption by the Jordanian authorities of an 
appropriate  framework  for  macroeconomic  policy  and  structural  reforms,  the  EU’s  MFA 
would  increase  the  added  value  and  effectiveness  of  the  EU’s  overall  financial  support 
measures, including through other instruments. 

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4 

Decision (EU) 2020/33 of the European  Parliament and of the Council of 15 January 2020 providing 
further macro-financial assistance to the Hashemite Kingdom of Jordan (OJ L 14, 17.1.2020, p. 1, ELI: 
http://data.europa.eu/eli/dec/2020/33/oj). 
EU  Decision  (EU)  2020/701  of  the  European  Parliament  and  of  the  Council  of  25  May  2020  on 
providing macro‐financial assistance to enlargement and neighbourhood partners in the context of the 
COVID‐19 pandemic (OJ L 165, 27.5.2020, p. 3, ELI: http://data.europa.eu/eli/dec/2020/701/oj). 
OJ L 129, 15.5.2002, p. 3–176. (http://data.europa.eu/eli/agree_internation/2002/357(1)/oj)  
available 
Priorities 
EU-Jordan 
https://data.consilium.europa.eu/doc/document/ST-3304-2022-ADD-1/en/pdf. 

Partnership 

2021-2027 

at: 

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2. 

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LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  basis  for  this  proposal  is  Article  212  of  the  Treaty  on  the  Functioning  of  the 
European Union (‘TFEU’).  

• 

Subsidiarity (for non-exclusive competence)  

The  subsidiarity  principle  is  respected  as  the  objectives  of  maintaining  short-term 
macroeconomic  stability  in  Jordan  cannot  be  sufficiently  achieved  by  the  Member  States 
alone and can be better achieved by the European Union. The main reasons are the budgetary 
constraints faced at the national level and the need for strong donor coordination in order to 
maximise the scale and effectivenes of the assistance.  

• 

Proportionality 

The  proposal  complies  with  the  proportionality  principle:  it  confines  itself  to  the  minimum 
required in order to achieve the objectives of short-term macroeconomic stability and does not 
go beyond what is necessary for that purpose.  

As identified by the Commission based on the estimates of the IMF in the context of the EFF, 
the amount of the proposed new MFA corresponds to 7.1% of the estimated residual financing 
gap for the period 2025-2027. This is consistent with standard practices on burden-sharing for 
MFA operations (for a country with an Association Agreement, the upper limit would be 60% 
according  to  the  ECOFIN  Council  conclusions  of  8  October  2002),  taking  into  account  the 
assistance pledged to Jordan by other bilateral and multilateral donors. When considering the 
overall  EU  support  to  Jordan  via  various  instruments  (including  the  proposed  MFA,  EU 
budget  support  and  EIB  loans,  excluding  bilateral  Member  States  support),  the  total  EU 
support  would  cover  16.0%  of  the  estimated  residual  financing  gap;  the  overall  EU 
contribution including budget support and EIB loans to Jordan is expected to be higher than in 
the past. 

• 

Choice of instrument 

Project  finance  or  technical  assistance  would  not  be  suitable  or  sufficient  to  address  the 
macroeconomic  objectives.  The  key  added  value  of  the  MFA  compared  to  other  EU 
instruments would be to alleviate the external financial constraints and to help create a stable 
macroeconomic  framework,  including  by  promoting  a  sustainable  balance  of  payments  and 
budgetary situation,  and  an appropriate framework for structural reforms.  By helping put  in 
place  an  appropriate  overall  policy  framework,  MFA  can  increase  the  effectiveness  of  the 
actions financed in Jordan under other, more narrowly-focused EU instruments. 

3. 

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RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The  Commission’s  MFA  proposal  builds  on  lessons  learnt  from  ex-post  evaluations  carried 
out on past operations in the EU’s neighbourhood, including on the ex-post evaluation of the 

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MFA-II  operation  provided  to  Jordan  in  2016-2019  that  was  governed  by  Decision  (EU) 
2016/2371 of the European Parliament and of the Council of 14 December 20165. 

This ex-post evaluation6 concluded overall that the MFA-II programme met its objectives. Its 
design was relevant to Jordan’s economic challenges, while it contributed substantially to the 
effective stabilisation of Jordan’s external  and fiscal  financial  position. The programme had 
considerable  added  value  for  the  EU  as  it  supported  macroeconomic  stability  in  a 
neighbouring partner country and mitigated the impact of the refugee crisis. It was designed 
and implemented in a way that was coherent with other EU policies and instruments.  

• 

Stakeholder consultations 

MFA is provided as an integral part of the international support for the economic stabilisation 
of Jordan. To prepare this proposal for MFA, the Commission consulted with the IMF, which 
has  already  put  in  place  sizeable  financing  programmes.  The  Commission  consulted  the 
Alternate  Economic  and  Financial  Committee  on  26 February 2024,  where  an  endorsement 
for the draft proposal was provided. The Commission has also been in regular contact with the 
Jordanian authorities. 

Collection and use of expertise 

• 
In  line  with  the  requirements  under  Regulation  (EU,  Euratom)  2018/10467  (‘Financial 
Regulation’), the Commission services will carry out, before the implementation of the MFA, 
an  operational  assessment  of  the  financial  and  administrative  circuits  of  Jordan  in  order  to 
ascertain that the procedures in place for the management of programme assistance, including 
MFA, provide adequate guarantees.  

• 

Impact assessment 

The  EU’s  MFA  is  an  exceptional  emergency  instrument  aimed  at  addressing  severere 
balance-of-payments  difficulties  in  non-EU  countries.  This  MFA  proposal  is  therefore 
exempted  from  the  requirement  to  carry  out  an  Impact  Assessment  in  line  with  the 
Commission's  Better  Regulation  Guidelines  (SWD(2015)  111  final)  as  there  is  a  political 
imperative to move ahead quickly in a situation requiring a rapid response.  

More  generally,  the  Commission's  MFA  proposals  build  on  lessons  learnt  from  ex-post 
evaluations carried out on past operations in the EU's neighbourhood. The new MFA, and the 
economic adjustment and reform programme attached to it, will help alleviate Jordan’s short-
term financing needs while supporting policy measures aimed at strengthening medium-term 
balance  of  payments  and  fiscal  sustainability  and  raising  sustainable  growth,  thus 
complementing the programme adopted by the IMF Executive Board. These policy conditions 
should address some of the fundamental weaknesses shown over the years by the Jordanian 
economy  and  economic  governance  system.  Possible  areas  of  conditionality  could,  in 
principle,  include  reforms  to  improve  economic  governance,  including  public  finance 

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Decision  (EU)  2016/2371  of  the  European  Parliament  and  of  the  Council  of  14  December  2016 
providing  further  macro-financial  assistance  to  the  Hashemite  Kingdom  of  Jordan  (OJ  L  352, 
23.12.2016, p. 18, ELI: http://data.europa.eu/eli/dec/2016/2371/oj). 
Ex-post  evaluation  on:  MFA  Operations  to  the  Southern  Neighbourhood  Countries  of  Tunisia  and 
Jordan  (2016-2019),  September  2021,  available  at:  https://commission.europa.eu/about-european-
commission/departments-and-executive-agencies/economic-and-financial-affairs/evaluation-reports-
economic-and-financial-affairs-policies-and-spending-activities/joint-ex-post-evaluation-macro-
financial-assistance-mfa-operations-tunisia-and_en 
OJ L 193, 30.7.2018, p. 1 (ELI: http://data.europa.eu/eli/reg/2018/1046/oj).  

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management  and  tax  administration;  social  and  labour  market  policy;  and  governance  and 
fight against fraud, corruption and money-laundering.  

• 

Fundamental rights 

Countries  that  are  covered  by  the  European  Neighbourhood  Policy  are  eligible  for  MFA.  A 
pre-condition  for  granting  MFA  is  that  the  eligible  country  respects  effective  democratic 
mechanisms, including a multi-party parliamentary system and the rule of law, and guarantees 
respect for human rights.  

Jordan  has  continued  its  political  reform  efforts  to  strengthen  parliamentary  democracy  and 
the rule of law. In 2021, Jordan launched a political modernisation process aspiring to foster 
political participation of women and youth, to overcome tribal  allegiance and encourage the 
formation of nationwide programme-based political parties, introduced through amendments 
to  the  Elections  and  Political  Parties  Laws.  In  2023,  the  government  amended  the  Labour 
Code in line with international human rights standards.  

While  important  political,  security,  economic  and  social  challenges  remain,  and  despite  an 
increasingly  challenging  regional  context,  Jordan  is  making  steps  towards  a  more  effective 
democratic  political  system  based  on  the  rule  of  law  and  respect  for  human  rights.  The  EU 
remains  fully  committed  in  supporting  Jordan  in  this  challenging  transition  process.  In  this 
context, the political pre-condition for granting MFA is considered to be satisfied. 

4. 

BUDGETARY IMPLICATIONS 

The proposed MFA operation of up to EUR 500 million in loans for Jordan is planned to be 
disbursed  in  three  instalments  to  be  released  in  between  2024  and  2027.  The  loan  will  be 
provided under the External Action Guarantee with a provisioning at a rate of 9%, which will 
be programmed under the NDICI-GE, for a total amount of EUR 45 million (budget line 14 
02  01  70  ‘NDICI  –  Provisioning  of  the  Common  Provisioning  Fund’).  The  loans  shall  be 
granted in the form of amortising loans with a grace period and subsequent capital repayments 
in  equal  tranches  over  a  longer  period.  Such  loan  structure  will  be  beneficial  for  both  the 
beneficiary, in that it facilitates repayments, and the budget, by spreading contingent liabilities 
over a long time-frame.  

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The  European  Union  will  make  the  MFA  available  to  Jordan  for  a  total  amount  of  up  to 
EUR 500 million, provided in  the form  of loans, which will contribute to covering Jordan’s 
residual financing needs in the operation’s availability period. The assistance is planned to be 
disbursed in three instalments, provided that the policy measures attached to each instalment 
have been fully implemented in a timely manner.  

The assistance will be managed by the Commission. Specific provisions on the prevention of 
fraud and other irregularities, consistent with the Financial Regulation, are applicable.  

Disbursements  under  the  proposed  MFA  operation  will  be  conditional  on  successful 
programme  reviews  under  the  IMF  programme.  In  addition,  the  Commission  and  the 
Jordanian authorities will agree on a specific set of structural reform measures, to be set out in 
a  Memorandum  of  Understanding.  These  reform  measures  should  support  the  authorities’ 
reform  agenda  and  complement  the  programmes  agreed  with  the  IMF,  the  World  Bank  and 
other donors, as  well as the policy programmes associated with  the EU’s budgetary  support 

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operations.  They  should  be  consistent  with  the  main  economic  reform  priorities  agreed 
between  the  EU  and  Jordan  in  the  Association  Agreement,  the  Partnership  Priorities  and 
annexed Compact; Jordan's Modernisation Vision and other strategic documents. 

EN 

8 

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2024/0086 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on providing macro-financial assistance to the Hashemite Kingdom of Jordan 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 212(2) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Acting in accordance with the ordinary legislative procedure8, 

Whereas: 

(1) 

(2) 

(3) 

the 

framework  of 

(‘Jordan’)  are  developing  within 

Relations between the European Union (‘the Union’) and the Hashemite Kingdom of 
Jordan 
the  European 
Neighbourhood  Policy  (ENP).  The  Union  and  Jordan  signed  an  Association 
Agreement on 24 November 1997, which entered into force on 1 May 20029. Under 
the Association Agreement, the Union and Jordan gradually established a Free Trade 
Area  over  a  transitional  period  of  12  years.  In  addition,  an  agreement  on  further 
liberalisation of agricultural products entered into force in 2007. In 2010, an Advanced 
Status  partnership  was  agreed  between  the  Union  and  Jordan  that  entails  expanded 
areas of cooperation. A protocol on Dispute Settlement Mechanisms for trade between 
the Union and Jordan initialled in December 2009 entered into force on 1 July 2011. 
Bilateral  political  dialogue  and  economic  cooperation  have  been  further  developed 
within  the  framework  of  the  Association  Agreement  and  the  EU-Jordan  Partnership 
Priorities adopted for 2022-2027.  

Since  2011,  Jordan  has  embarked  on  a  number  of  political  reforms  to  strengthen 
parliamentary  democracy  and  the  rule  of  law.  A  Constitutional  Court  and  an 
Independent  Electoral  Commission  have  been  set  up  and  a  number  of  major  laws, 
including  the  Electoral  Act  and  the  Political  Parties  Act  as  well  as  laws  on 
decentralisation  and  municipalities,  have  been  passed  by  the  Jordanian  Parliament. 
Legislative improvements as regards the independence of the judiciary and women’s 
rights have been adopted. 

The  Jordanian  economy  has  suffered  significantly  from  protracted  conflicts  in  the 
region,  notably  in  neighbouring  Syria,  and  most  recently  in  Israel/Gaza  and  the  Red 
Sea. Since the start of the war in Syria, the Jordanian economy has been impacted by a 
large  inflow  of  Syrian  refugees,  which  has  increased  pressure  on  its  fiscal  position, 
the 
public  services  and 
macroeconomic  and  fiscal  challenges  related  to  the  COVID-19  pandemic  in 

infrastructure. 

In  addition 

instability, 

regional 

to 

8 
9 

Position of the European Parliament of … and Decision of the Council of … 
OJ L 129, 15.5.2002, p. 3, ELI: http://data.europa.eu/eli/agree_internation/2002/357(1)/oj.  

EN 

9 

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(4) 

(5) 

2020/2021, commodity price developments following Russia’s invasion of Ukraine in 
2022,  high  exposure  to  trade  fluctuations  and  the  increase  of  borrowing  costs  for 
emerging markets globally continued to weigh on the Jordanian economy. As a result, 
Jordan  experienced  an  economic  contraction  in  2020,  followed  by  a  slow  economic 
recovery,  as  unemployment  increased  significantly  in  2020  and  remained  high,  and 
new fiscal and external financing needs emerged. 

The war in Israel-Gaza that started in October 2023 implies very substantial downside 
risk to the economic outlook, in particular due to the increased level of uncertainty in 
the  region  and  the  possible  impact  on  the  important  tourism  sector  and  consumer 
sentiment.  The  ongoing  Houthi  attacks  on  cargo  and  energy  vessels  in  the  Red  Sea 
hinder vessel traffic to Asia, impacting Jordan’s exports, in particular the mineral and 
chemicals exports, and imports.In January 2024, the Jordanian authorities and the IMF 
agreed on a new economic adjustment programme supported by a four-year Extended 
Fund  Facility  (EFF)  in  the  amount  of  USD  1.2  billion,  which  followed  a  USD  1.7 
billion  four-year  EFF,  including  a  loan  under  the  Rapid  Financing  Instrument,  from 
2020-2023. 

In January 2020, the Union adopted a third programme of macro-financial assistance 
(MFA-III)10  of EUR 500  million  in  the form  of loans,  in  response to a request  from 
Jordan  in  July  2019  and  following  the  completion  of  a  second  MFA  (of  EUR  200 
million)  in  2019.  MFA-II11  came  as  a  follow-up  to  MFA-I12  (of  EUR  180  million) 
implemented  in  2015.  MFA-III  was  topped  up  in  a  Union  decision  in  May  2020  by 
EUR  200  million  in  response  to  the  socio-economic  fallout  of  the  COVID-19 
pandemic.  The  first  instalment  of  MFA-III  was  released  on  25  October  2020,  the 
second instalment on 20 July 2021, the third instalment on 3 May 2023, following the 
implementation  of  the  agreed  policy  measures.  The  assistance  was  fully  disbursed 
during 2020-2023. 

(6)  MFA-III included a joint statement by the European Parliament, the Council and the 
Commission  in  which  the  Commission,  in  light  of  the  fiscal  challenges  and 
extraordinary circumstances Jordan faces, committed to submit, if appropriate, a new 
proposal  for  extending  and  increasing  MFA  to  Jordan,  provided  that  the  usual 
requirements  for  this  type  of  assistance,  including  its  exceptional  character,  political 
preconditions,  complementarity,  conditionality  and  financial  discipline  an  updated 
assessment by the Commission of Jordan’s external financing needs, are met.  

(7) 

In  this  challenging  context,  the  Union  and  the  international  community  expressed 
again the commitment to supporting Jordan on several subsequent occasions, notably 
during  annual  Brussels  Conferences  on  “Supporting  the  Future  of  Syria  and  the 
region” and the EU-Jordan Association Council in June 2022.  

(8) 

Since  the  beginning  of  the  Syrian  crisis  in  2011,  the  Union  has  made  available 
approximately  EUR  3.5  billion  to  Jordan  under  different  instruments  (including 

10 

11 

12 

Decision (EU) 2020/33 of the European Parliament and of the Council of 15 January 2020 providing 
further macro-financial assistance to the Hashemite Kingdom of Jordan (OJ L 14, 17.1.2020, p. 1, ELI: 
http://data.europa.eu/eli/dec/2020/33/oj). 
Decision  (EU)  2016/2371  of  the  European  Parliament  and  of  the  Council  of  14  December  2016 
providing  further  macro-financial  assistance  to  the  Hashemite  Kingdom  of  Jordan  (OJ  L  352, 
23.12.2016, p. 18, ELI: http://data.europa.eu/eli/dec/2016/2371/oj). 
Decision No 1351/2013/EU of the European Parliament and of the Council  of 11 December 2013 on 
providing macro-financial assistance to the Hashemite Kingdom of Jordan (OJ L 341, 18.12.2013, p. 4, 
ELI: http://data.europa.eu/eli/dec/2013/1351/oj). 

EN 

10 

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(9) 

EUR 1 080  million  under  the  three  aforementioned  MFA  operations)  to  help  the 
country  preserve  economic  stability,  sustain  political  and  economic  reform  and 
address  its  related  humanitarian,  development  and  security  needs.  In  addition,  the 
European  Investment  Bank  has  allocated  around  EUR  1.1  billion  in  project  loans  to 
Jordan since 2011. 

For  the  period  2021-2024,  EU  bilateral  indicative  allocation  (grants)  under  the 
Neighbourhood  Development  and  International  Cooperation  Instrument  –  Global 
Europe (NDICI-GE) to Jordan amounts to EUR 364 million and is complemented by 
EU support to  help  Jordan address  the impact  of the Syrian crisis  (EUR  214  million 
from  2021  to  2023)  as  well  as  other  regional  and  thematic  programmes.  During  the 
period  2014-2020,  the  EU  provided  support  to  Jordan  mainly  through  the  European 
Neighbourhood  Instrument  with  EUR  765  million.  During  the  same  period,  Jordan 
also  benefitted  from  additional  EUR  126  million  channelled  via  the  Neighbourhood 
Investment Platform (NIP), which leveraged around EUR 580 million in investments. 

(10) 

In October 2023, in view of the still difficult economic situation and outlook, Jordan 
requested additional macro-financial assistance from the Union. 

(11)  The  IMF  Board  approved  a  new  four-year  Extended  Fund  Facility  in  January  2024. 
The first review mission is scheduled for April 2024, with a mission report expected to 
be published in June 2024. 

(12)  Given  that  Jordan  is  a  country  covered  by  the  ENP,  it  should  be  considered  to  be 

eligible to receive macro-financial assistance from the Union. 

(13)  The Union’s macro-financial assistance should be an exceptional financial instrument 
of untied and undesignated balance-of-payments support, which aims at addressing the 
beneficiary’s 
the 
implementation  of  a  policy  programme  containing  strong  immediate  adjustment  and 
structural  reform  measures  designed  to  improve  the  balance-of-payments  position  in 
the short term. 

immediate  external  financing  needs  and  should  underpin 

(14)  Given that a residual financing gap remains in Jordan’s balance of payments over and 
above the resources provided by IMF and other multilateral institutions, the provision 
by the Union of macro-financial assistance to Jordan is, under the current exceptional 
circumstances,  considered  to  be  an  appropriate  response  to  Jordan’s  request  to  the 
Union to support its economic stabilisation, in conjunction with the IMF programme. 
The Union’s macro-financial assistance would support the economic stabilisation and 
the structural reform agenda of Jordan, supplementing resources made available under 
the IMF’s financial arrangement. 

(15)  The  Union’s  macro-financial  assistance  should  aim  to  support  the  restoration  of  a 
sustainable external financing situation for Jordan thereby supporting its economic and 
social development. 

(16)  The  Union’s  macro-financial  assistance  is  expected  to  go  hand-in-hand  with  the 
implementation  of  budget  support  operations  under  NDICI-GE  established  by 
Regulation (EU) 2021/947 of the European Parliament and of the Council13.  

13 

Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing 
the  Neighbourhood,  Development  and  International  Cooperation  Instrument  –  Global  Europe, 
amending  and  repealing  Decision  No  466/2014/EU  and  repealing  Regulation  (EU)  2017/1601  and 

EN 

11 

  EN 

 
 
(17)  The determination of the amount of the Union’s macro-financial assistance is based on 
a complete quantitative assessment of Jordan’s residual external financing needs, and 
takes into account its capacity to finance itself with its own resources, in particular the 
international  reserves  at  its  disposal.  The  Union’s  macro-financial  assistance  should 
complement the programmes and resources provided by the IMF and the World Bank. 
The  determination  of  the  amount  of  the  assistance  also  takes  into  account  expected 
financial  contributions  from  bilateral  and  multilateral  donors  and  the  need  to  ensure 
fair  burden  sharing  between  the  Union  and  other  donors,  as  well  as  the  pre-existing 
deployment  of  the  Union’s  other  external  financing  instruments  in  Jordan  and  the 
added value of the overall Union involvement. 

(18)  The Commission should ensure that the Union’s macro-financial assistance is legally 
and  substantially  in  accordance  with  the  key  principles  and  objectives,  and  of  the 
measures taken within, the different areas of external action and other relevant Union 
policies. 

(19)  The  Union’s  macro-financial  assistance  should  support  the  Union’s  external  policy 
towards  Jordan.  Commission  services  and  the  European  External  Action  Service 
(EEAS)  should  work  closely  together  throughout  the  macro-financial  assistance 
operation  in  order  to  coordinate,  and  to  ensure  the  consistency  of,  Union  external 
policy. 

(20)  The Union’s macro-financial assistance should support Jordan’s commitment to values 
shared with the Union, including democracy, the rule of law, good governance, respect 
for  human  rights,  sustainable  development  and  poverty  reduction,  as  well  as  its 
commitment to the principles of open, rule-based and fair trade. 

(21)  A  pre-condition  for  granting  the  Union’s  macro-financial  assistance  should  be  that 
Jordan  respects  effective  democratic  mechanisms  – 
including  a  multi-party 
parliamentary system – and the rule of law, and guarantees respect for human rights. 
In  addition,  the  specific  objectives  of  the  Union’s  macro-financial  assistance  should 
strengthen  the  efficiency,  transparency  and  accountability  of  the  public  finance 
management  systems  in  Jordan  and  promote  structural  reforms  aimed  at  supporting 
sustainable and inclusive growth, employment creation and fiscal consolidation. Both 
the fulfilment of the pre-conditions and the achievement of those objectives should be 
regularly monitored by the Commission and the EEAS. 

(22) 

14 

In  order  to  ensure  that  the  Union’s  financial  interests  linked  to  the  Union’s  macro-
financial assistance are protected efficiently, Jordan should take appropriate measures 
relating  to  the  prevention  of,  and  fight  against,  fraud,  corruption  and  any  other 
irregularities  linked  to  the  assistance.  In  addition,  a  loan  agreement  to  be  concluded 
between  the  Commission  and  the  Jordanian  authorities  should  contain  provisions 
authorising European Anti-Fraud Office (OLAF) to carry out investigations, including 
on-the-spot checks and inspections, in accordance with the provisions and procedures 
laid down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and 
of  the  Council14  and  Council  Regulation  (Euratom,  EC)  No  2185/96615,  the 

(EC,  Euratom)  No  480/2009 

Council  Regulation 
http://data.europa.eu/eli/reg/2021/947/o). 
Regulation  (EU,  Euratom)  No  883/2013  of  the  European  Parliament  and  of  the  Council  of  11 
September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and 
repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council 
ELI: 
(OJ 
Regulation 
http://data.europa.eu/eli/reg/2013/883/oj). 

(OJ  L  209,  14.6.2021,  p.  1),  ELI: 

(Euratom)  No 

1074/1999 

18.9.2013, 

248, 

p. 

1, 

L 

EN 

12 

  EN 

 
Commission  and  the  Court  of  Auditors  to  carry  out  audits  and  the  European  Public 
Prosecutor’s  Office  to  exercise  its  competences  with  regard  to  the  provision  of  the 
Union’s macro-financial assistance during and after its availability period. 

(23)  Release of the Union’s  macro-financial assistance is  without prejudice to  the powers 

of the European Parliament and the Council (as budgetary authority). 

(24)  The  amounts  of  provisioning  required  for  the  Union’s  macro-financial  assistance 
should be consistent with the budgetary appropriations provided for in the multiannual 
financial framework. 

(25)  The  Union’s  macro-financial  assistance  should  be  managed  by  the  Commission.  In 
order  to  ensure  that  the  European  Parliament  and  the  Council  are  able  to  follow  the 
implementation  of  this  Decision,  the  Commission  should  regularly  inform  them  of 
developments relating to the assistance and provide them with the relevant documents. 

(26) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Decision, 
implementing powers should be conferred on the Commission. Those powers should 
be  exercised  in  accordance  with  Regulation  (EU)  No  182/2011  of  the  European 
Parliament and of the Council16. 

(27)  The  Union’s  macro-financial  assistance  should  be  subject  to  economic  policy 
conditions,  to  be  laid  down  in  a  Memorandum  of  Understanding.  In  order  to  ensure 
uniform conditions of implementation and for reasons of efficiency, the Commission 
should  be  empowered  to  negotiate  such  conditions  with  the  Jordanian  authorities 
under  the  supervision  of  the  committee  of  representatives  of  the  Member  States  in 
accordance  with  Regulation  (EU)  No  182/2011.  Under  that  Regulation,  the  advisory 
procedure should, as a general rule, apply in all cases other than as provided for in that 
Regulation.  Considering  the  potentially  important  impact  of  assistance  of  more  than 
EUR  90  million,  it  is  appropriate  that  the  examination  procedure  be  used  for 
operations  above  that  threshold.  Considering  the  amount  of  the  Union’s  macro-
financial assistance to Jordan, the examination procedure should apply to the adoption 
of  the  Memorandum  of  Understanding,  and  to  any  reduction,  suspension  or 
cancellation of the assistance. 

HAVE ADOPTED THIS DECISION: 

1. 

2. 

15 

16 

Article 1 

The Union shall make macro-financial assistance of a maximum amount of EUR 500 
million available to Jordan (“the Union’s macro-financial assistance”), with a view to 
supporting  Jordan’s  economic  stabilisation  and  a  substantive  reform  agenda.  The 
assistance  shall  contribute  to  covering  Jordan’s  balance  of  payments  needs  as 
identified in the IMF programme.  

The  full  amount  of  the  Union’s  macro-financial  assistance  shall  be  provided  to 
Jordan in the form of loans.  

Council  Regulation  (EU)  2017/1939  of  12  October  2017  implementing  enhanced  cooperation  on  the 
establishment  of  the  European  Public  Prosecutor’s  Office  (‘the  EPPO’)  (OJ  L  283,  31.10.2017,  p.  1, 
ELI: http://data.europa.eu/eli/reg/2017/1939/oj). 
Regulation  (EU)  No  182/2011  of  the  European  Parliament  and  of  the  Council  of  16  February  2011 
laying down the rules and general principles concerning mechanisms for control by Member States of 
implementing  powers  (OJ  L  55,  28.2.2011,  p.  13,  ELI: 
the  Commission’s  exercise  of 
http://data.europa.eu/eli/reg/2011/182/oj). 

EN 

13 

  EN 

 
3. 

4. 

5. 

6. 

7. 

1. 

2. 

3. 

1. 

17 

The  Commission  shall  be  empowered,  on  behalf  of  the  Union,  to  borrow  the 
necessary funds on the capital markets or from financial institutions and to on-lend 
them to Jordan.  

The  release  of  the  Union’s  macro-financial  assistance  shall  be  managed  by  the 
Commission in a manner consistent with the agreements or understandings reached 
between  the  International  Monetary  Fund  (IMF)  and  Jordan,  and  with  the  key 
principles and objectives of economic reforms set out in the EU-Jordan Association 
Agreement. 

The Commission shall regularly inform the European Parliament and the Council of 
developments 
including 
disbursements  thereof,  and  shall  provide  those  institutions  with  the  relevant 
documents in due time. 

the  Union’s  macro-financial  assistance, 

regarding 

The Union’s macro-financial assistance shall be made available for a period of two 
and  a  half  years,  starting  from  the  first  day  after  the  entry  into  force  of  the 
Memorandum of Understanding referred to in Article 3(1).  

If  the  financing  needs  of  Jordan  decrease  fundamentally  during  the  period  of  the 
disbursement  of  the  Union’s  macro-financial  assistance  compared  to  the  initial 
projections,  the  Commission,  acting  in  accordance  with  the  examination  procedure 
referred  to  in  Article  7(2),  shall  reduce  the  amount  of  the  assistance  or  suspend  or 
cancel it. 

Article 2 

A  pre-condition  for  granting  the  Union’s  macro-financial  assistance  shall  be  that 
Jordan  respects  effective  democratic  mechanisms  –  including  a  multi-party 
parliamentary system – and the rule of law, and guarantees respect for human rights. 

The  Commission  and  the  European  External  Action  Service  shall  monitor  the 
fulfilment  of  this  pre-condition  throughout  the  life  cycle  of  the  Union’s  macro-
financial assistance. 

Paragraphs  1  and  2  of  this  Article  shall  be  applied  in  accordance  with  Council 
Decision 2010/427/EU17. 

Article 3 

The  Commission,  in  accordance  with  the  examination  procedure  referred  to  in 
Article 7(2), shall agree with the Jordanian authorities on clearly defined economic 
policy  and  financial  conditions,  focusing  on  structural  reforms  and  sound  public 
finances, to which the Union’s macro-financial assistance is to be subject, to be laid 
down  in  a  Memorandum  of  Understanding  (“the  Memorandum  of  Understanding”) 
which shall include a timeframe for the fulfilment of those conditions. The economic 
policy and financial conditions set out in the Memorandum of Understanding shall be 
consistent  with  the  agreements  or  understandings  referred  to  in  Article  1(3), 
including  the  macroeconomic  adjustment  and  structural  reform  programmes 
implemented by Jordan with the support of the IMF. 

Council  Decision  2010/427/EU  of  26  July  2010  establishing  the  organisation  and  functioning  of  the 
ELI: 
(OJ 
European 
http://data.europa.eu/eli/dec/2010/427/oj). 

3.8.2010, 

External 

Service 

Action 

201, 

30, 

p. 

L 

EN 

14 

  EN 

 
2. 

3. 

4. 

1. 

2. 

3. 

The  conditions  referred  to  in  paragraph  1  shall  aim,  in  particular,  at  enhancing  the 
efficiency,  transparency  and  accountability  of  the  public  finance  management 
systems  in  Jordan,  including  for  the  use  of  the  Union’s  macro-financial  assistance. 
Progress  in  mutual  market  opening,  the  development  of  rules-based  and  fair  trade, 
and  other  priorities  in  the  context  of  the  Union’s  external  policy  shall  also  be  duly 
taken into account  when designing the policy measures. Progress  in  attaining those 
objectives shall be regularly monitored by the Commission. 

The detailed financial  terms of the Union’s macro-financial  assistance shall be laid 
down  in  a  loan  agreement  in  accordance  with  Article  220  of  the  Financial 
Regulation, to be concluded between the Commission and the Jordanian authorities. 

The  Commission  shall  verify,  at  regular  intervals,  that  the  conditions  referred  to  in 
Article 4(3) continue to  be met,  including  whether the economic policies of Jordan 
are in accordance with the objectives of the Union’s macro-financial assistance. In so 
doing,  the Commission shall coordinate closely with  the IMF and the World Bank, 
and, where necessary, with the European Parliament and the Council. 

Article 4 

Subject  to  the  conditions  referred  to  in  paragraph  3,  the  Union’s  macro-financial 
assistance shall be made available by the Commission in three loan instalments. The 
size  of  each  instalment  shall  be  laid  down  in  the  Memorandum  of  Understanding 
referred to in Article 3. 

The amounts  of the Union’s macro-financial assistance shall be provisioned, where 
required, in accordance with Regulation (EU) 2021/947. 

The  Commission  shall  decide  on  the  release  of  the  instalments  subject  to  the 
fulfilment of all the following conditions:  

(a) 

(b) 

the pre-condition set out in Article 2; 

a  continuous  satisfactory  track  record  of  implementing  a  policy  programme 
that contains strong adjustment and structural reform measures supported by a 
non-precautionary IMF credit arrangement; and 

(c) 

the  satisfactory  implementation  of  the  economic  policy  and  financial 
conditions agreed in the Memorandum of Understanding. 

The  release  of  the  second  instalment  shall  not,  in  principle,  take  place  earlier  than  three 
months after the release of the first instalment. The release of the third instalment shall not, in 
principle, take place earlier than three months after the release of the second instalment. 

4. 
Where the conditions referred to in the first subparagraph of paragraph 3 are not met, 
the Commission shall temporarily suspend or cancel the disbursement of the Union’s macro-
financial assistance. In such cases, it shall inform the European Parliament and the Council of 
the reasons for the suspension or cancellation. 

5. 
The  Union’s  macro-financial  assistance  shall  be  disbursed  to  the  Central  Bank  of 
Jordan.  Subject  to  the  provisions  to  be  agreed  in  the  Memorandum  of  Understanding, 
including  a  confirmation  of  residual  budgetary  financing  needs,  the  Union  funds  may  be 
transferred  by  the  Central  Bank  of  Jordan  to  the  Jordanian  Ministry  of  Finance  as  the  final 
beneficiary. 

EN 

15 

  EN 

1. 

2. 

3. 

1. 

2. 

3. 

1. 

2. 

1. 

18 

Article 5 

In  order  to  finance  the  support  under  the  macro-financial  assistance  in  the  form  of 
loans,  the  Commission  shall  be  empowered,  on  behalf  of  the  Union,  to  borrow  the 
necessary  funds  on  the  capital  markets  or  from  financial  institutions  in  accordance 
with Article 220 of Regulation (EU, Euratom) 2018/1046. 

The  Commission  shall  enter  into  a  loan  agreement  with  Jordan  in  respect  of  the 
amount referred to in Article 1. The detailed terms of the support under the MFA in 
the form of loans shall be laid down in a loan agreement in accordance with Article 
220  of  the  Financial  Regulation,  to  be  concluded  between  the  Commission  and 
Jordan.  The  loan  agreement  shall  lay  down  the  availability  period  and  the  detailed 
terms  of  the  support  under  the  macro-financial  assistance  in  the  form  of  loans, 
including  in  relation  to  the  internal  control  systems.  The  loans  shall  be  granted  at 
terms  that  allow  Jordan  to  repay  the  loan  over  a  long  period,  including  a  possible 
grace period. The maximum duration of the loans shall be 35 years.  

The  Commission  shall  inform  the  European  Parliament  and  the  Council  of 
developments in the operations referred to in paragraphs 2 and 3. 

Article 6 

The  Union’s  macro-financial  assistance  shall  be  implemented  in  accordance  with 
Regulation  (EU,  Euratom)  No  2018/1046  of  the  European  Parliament  and  of  the 
Council18. 

The  Union’s  macro-financial  assistance  shall  be 
management. 

implemented  under  direct 

the 

implementation  of 

Before 
the 
Commission  shall  assess,  by  means  of  an  operational  assessment,  the  soundness  of 
Jordan’s financial arrangements, the administrative procedures, and the internal and 
external control mechanisms which are relevant to the assistance. 

the  Union’s  macro-financial  assistance, 

Article 7 

The  Commission  shall  be  assisted  by  a  committee.  That  committee  shall  be  a 
committee within the meaning of Regulation (EU) No 182/2011. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply. 

Article 8 

By  30 June  of  each  year,  the  Commission  shall submit  to  the  European  Parliament 
and to the Council a report on the implementation of this Decision in the preceding 
year, including an evaluation of that implementation. The report shall: 

(a) 

examine  the  progress  made  in  implementing  the  Union’s  macro-financial 
assistance to Jordan; 

Regulation  (EU,  Euratom)  No  1046/2018  of  the  European  Parliament  and  of  the  Council  of  18  July 
2018 on the financial rules applicable to the general budget of the Union and repealing Regulation (EU, 
Euratom) No 966/2012 (OJ L 193, 30.07.2018, p. 1). 

EN 

16 

  EN 

 
(b) 

(c) 

assess  the  economic  situation  and  prospects  of  Jordan,  as  well  as  progress 
made in implementing the economic policy and financial conditions referred to 
in Article 3(1); 

indicate the connection  between the economic policy conditions  laid down in 
the  Memorandum  of  Understanding,  Jordan’s  ongoing  economic  and  fiscal 
performance and the Commission’s decisions to release the instalments of the 
Union’s macro-financial assistance. 

2. 

Not  later  than  two  years  after  the  expiry  of  the  availability  period  referred  to  in 
Article  1(6),  the  Commission  shall  submit  to  the  European  Parliament  and  to  the 
Council  an  ex-post  evaluation  report,  assessing  the  results  and  efficiency  of  the 
completed  Union’s  macro-financial  assistance  and  the  extent  to  which  it  has 
contributed to the aims of the assistance. 

Article 9 

This  Decision  shall  enter  into  force  on  the  third  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

17 

  EN 

LEGISLATIVE FINANCIAL STATEMENT 

EN 

18 

  EN 

1. 

1.1. 

1.2. 

1.3. 

1.4. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  4 

Title of the proposal/initiative 

4 

Policy area(s) concerned  4 

The proposal/initiative relates to: 4 

Objective(s) 4 

1.4.1.  General objective(s) 4 

1.4.2. 

Specific objective(s)  4 

1.4.3.  Expected result(s) and impact 

4 

1.4.4. 

Indicators of performance  5 

1.5. 

Grounds for the proposal/initiative 

5 

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

5 

1.5.2.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this point 'added value of Union involvement' is the value resulting 
from  Union  intervention  which  is  additional  to  the  value  that  would  have  been 
otherwise created by Member States alone. 5 

1.5.3.  Lessons learned from similar experiences in the past 

5 

1.5.4.  Compatibility  with  the  Multiannual  Financial  Framework  and  possible  synergies 

with other appropriate instruments  6 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 6 

1.6. 

Duration and financial impact of the proposal/initiative 

7 

1.7.  Management mode(s) planned 

7 

2. 

MANAGEMENT MEASURES  8 

2.1.  Monitoring and reporting rules  8 

2.2.  Management and control system(s) 

8 

2.2.1. 

2.2.2. 

Justification of the management mode(s), the funding implementation mechanism(s), 
the payment modalities and the control strategy proposed  8 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

8 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control 
costs ÷ value of the related funds managed"), and assessment of the expected levels 
of risk of error (at payment & at closure)  8 

2.3.  Measures to prevent fraud and irregularities 

9 

3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  10 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected 

10 

EN 

19 

  EN 

3.2. 

Estimated financial impact of the proposal on appropriations  11 

3.2.1. 

Summary of estimated impact on operational appropriations 

11 

3.2.2.  Estimated output funded with operational appropriations  14 

3.2.3. 

Summary of estimated impact on administrative appropriations  15 

3.2.4.  Compatibility with the current multiannual financial framework  17 

3.2.5.  Third-party contributions  17 

3.3. 

Estimated impact on revenue 

18 

LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative 

Proposal  for  a  Decision  of  the  European  Parliament  and  of  the  Council  providing  further 
macro-financial assistance to the Hashemite Kingdom of Jordan. 

1.2. 

Policy area(s) concerned  

Policy area:  Economic and Financial Affairs 

Activity: 

International economic and financial affairs 

1.3.  The proposal/initiative relates to:  

X a new action  
 a new action following a pilot project/preparatory action19  

 the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action  

1.4.  Objective(s) 

1.4.1.  General objective(s) 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative  

“An Economy that works for people” 

“A stronger Europe in the world” 

1.4.2.  Specific objective(s) 

Supporting macro-financial stability and promoting growth-enhancing reforms outside 
(a) 
the  EU,  including  through  regular  economic  dialogues  with  key  partners  and  by  providing 
macro-financial assistance.  

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

19 

As referred to in Article 58(2)(a) or (b) of the Financial Regulation. 

EN 

20 

  EN 

 
 
 
Contribute  to  covering  the  external  financing  needs  of  Jordan  in  the  context  of  a 
their  external  accounts  brought  by  recent  geopolitical 

(1) 
significant  deterioration  of 
developments.  

(2) 

Alleviate the partner’s budgetary financing needs. 

Support the fiscal consolidation effort and external stabilisation in the context of the 

(3) 
IMF programme. 

Support  structural  reforms  aimed  at 

(4) 
management,  strengthening  economic  governance  and 
conditions for sustainable growth. 

improving 

the  overall  macroeconomic 
improving 

transparency,  and 

1.4.4.  Indicators of performance 

Specify the indicators for monitoring progress and achievements. 

The  authorities  of  Jordan  will  be  required  to  report  on  a  set  of  economic  indicators  to  the 
Commission  services  on  a  regular  basis  and  provide  a  comprehensive  report  on  the 
compliance with the agreed policy conditions ahead of the disbursement of the instalments of 
the assistance.  

The Commission services will continue to monitor public finance management, following the 
operational assessment of the financial circuits and administrative procedures in Jordan. The 
EU Delegation will also provide regular reporting on issues relevant for the monitoring of the 
assistance. The Commission services will remain in close contact with the IMF and the World 
Bank to benefit from their insights from their ongoing activities in the respective partner.  

An  annual  report  to  the  Council  and  European  Parliament  is  foreseen  in  the  proposed 
legislative  decision,  including  an  assessment  of  the  implementation  of  this  operation.  An 
independent ex-post evaluation of the assistance will be carried out within two years after the 
expiry of the implementation period. 

1.5.  Grounds for the proposal/initiative  

1.5.1.  Requirement(s)  to  be  met  in  the  short  or  long  term  including  a  detailed  timeline  for 
roll-out of the implementation of the initiative 

The disbursement of the assistance will be conditional on the fulfilment of the political pre-
conditions and a satisfactory track record in the implementation of the economic programme 
between  Jordan  and  the  IMF,  which  was  approved  by  the  Board  on  10 January 2024.  In 
addition,  the  Commission  shall  agree  with  the  authorities  of  Jordan  on  specific  policy 
conditions, listed in a Memorandum of Understanding.  

The  assistance  is  planned  to  be  disbursed  in  three  instalments.  The  disbursements  are 
expected to take place between 2024 and 2027.  

Specific  provisions  on  the  prevention  of  fraud  and  other  irregularities,  consistent  with  the 
Financial Regulation, are applicable. 

1.5.2.  Added  value  of  Union  involvement  (it  may  result  from  different  factors,  e.g. 
coordination  gains,  legal  certainty,  greater  effectiveness  or  complementarities).  For  the 
purposes of this point 'added value of Union involvement' is the value resulting from Union 
intervention,  which  is  additional  to  the  value  that  would  have  been  otherwise  created  by 
Member States alone. 

The instrument of macro-financial assistance is a policy-based instrument directed to alleviate 
short- and medium-term external financial needs. In the context of the ongoing regional crisis, 

EN 

21 

  EN 

MFA  will  help  to  provide  economic  and  fiscal  policy  space  for  the  authorities  to  mount  an 
effective  economic  response  to  the  crisis  by  helping  the  partner  country  overcome  the 
economic difficulties amplified by the recent geopolitical developments and in particular the 
war in the Middle East and the consequent Red Sea crisis, the proposed MFA will contribute 
to  promoting  macroeconomic  and  political  stability  in  the  partner  country.  MFA  will 
complement  the  resources  made  available  by  international  financial  institutions,  bilateral 
donors  and  other  EU  financial  institutions.  In  doing  so,  it  will  contribute  to  the  overall 
effectiveness of the financial support provided by the international community, as well as of 
other EU financial assistance, including budget support operations. 

Furthermore,  by  providing  long-term  financing  in  highly  concessional  terms,  usually  lower 
than the rest of international or bilateral donors, the MFA programme is expected to help the 
government  to  execute  its  budget  without  fiscal  deviations  and  to  contribute  to  debt 
sustainability. 

In addition to the financial impact of the MFA, the proposed programme will strengthen the 
government’s reform commitment. This result will be achieved, inter alia, through appropriate 
conditionality for the disbursement of the assistance.  

1.5.3.  Lessons learned from similar experiences in the past 

Macro-financial  assistance  operations  in  partners  are  subject  to  ex-post  evaluation. 
Evaluations  conducted  thus  far  (on  completed  MFA  programmes),  conclude  that  MFA 
operations do contribute, albeit sometimes modestly and indirectly, to the improvement of the 
external sustainability, the macroeconomic stability and the achievement of structural reforms 
in  the  partner.  In  most  cases,  MFA  operations  had  a  positive  effect  on  the  balance  of 
payments of the partner country and helped to relax their budgetary constraints. They also led 
to somewhat higher economic growth. 

1.5.4.  Compatibility with the Multiannual Financial Framework and possible synergies with 
other appropriate instruments 

Compatibility with the Multiannual Financial Framework 

In  the  2021-2027  multiannual  financial  framework,  the  provisioining  of  MFA  loans  will  be 
covered  by  the  External  Action  Guarantee  within  Global  Europe  (Neighbourhood, 
Development and International Cooperation Instrument).  

Possible synergies with other appropriate instruments 

The  EU  is  among  the  major  donors  to  Jordan,  supporting  its  economic,  structural  and 
institutional  reforms  as  well  as  civil  society.  In  this  context,  MFA  complements  other  EU 
external actions or instruments used to support Jordan. The policy measures associated with 
MFA  cover  selected  provisions  related  to  the  Association  Agreement  and  the  EU  Jordan 
Partnership Priorities. 

The  key  value  added  of  the  MFA  in  comparison  to  other  EU  instruments  would  be  to  help 
create a stable macroeconomic framework, including by promoting a sustainable balance-of-
payments  and  budgetary  situation,  and  an  appropriate  framework  for  advancing  structural 
reforms. MFA does not provide regular financial support and is to be discontinued as soon as 
the country's external financial situation has been brought back onto a sustainable path. 

MFA  would  also  be  complementary  to  interventions  envisaged  by  the  international 
community, in  particular the adjustment and reform programmes supported by the  IMF  and 
the World Bank. 

EN 

22 

  EN 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 
redeployment 

By using loans, this MFA operation increases the effectiveness of the EU budget through the 
leverage effect and provides for the best cost-efficient option.  

The Commission is  empowered to  borrow funds  from  capital  markets  on behalf of both  the 
European  Union  and  Euratom  using  the  guarantee  of  the  EU  budget.  The  aim  is  to  obtain 
funds from the market at the best available rates due to the top credit status.  

EN 

23 

  EN 

1.6.  Duration and financial impact of the proposal/initiative 

X limited duration  

– 

in  effect  from  for  2.5  years  from  the  entry  into  force  of  the  Memorandum  of 
Understanding, as stated in Article (1.4) of the Decision.  

– 

Financial impact from 2024 to 2027 for commitment appropriations and from 
2024 to 2027 for payment appropriations.  
1.7.  Method(s) of budget implementation planned20  

X Direct management by the Commission 

X by its departments, including by its staff in the Union delegations;  

20 

Details of budget implementation methods and references to the Financial Regulation may be found on 
the BUDGpedia site: https://myintracomm.ec.europa.eu/corp/budget/financial-rules/budget-
implementation/Pages/implementation-methods.aspx 

EN 

24 

  EN 

 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

The actions to be financed under this Decision will be implemented under direct management 
by the Commission from headquarters and with support of the Union delegations.  

This  assistance  is  of  macroeconomic  nature  and  its  design  is  consistent  with  the  IMF-
supported  programme.  The  monitoring  of  the  action  by  the  Commission  services  will  take 
place  on  the  basis  of  progress  in  the  implementation  of  the  IMF  arrangement  and  the 
implementation of specific reform measures to be agreed with the authorities of the partners 
in  a Memorandum  of Understanding  with  a frequency that  is  consistent  with  the number of 
instalments (See also point 1.4.4). 

2.2.  Management and control system(s)  

2.2.1.  Justification  of  the  management  mode(s),  the  funding  implementation  mechanism(s), 
the payment modalities and the control strategy proposed 

The actions to be financed under this Decision will be implemented under direct management 
by the Commission from headquarters and with support of the Union delegations.  

MFA  disbursements  are  dependent  on  successful  reviews,  and  tied  to  the  fulfilment  of 
conditionality  attached  to  each  operation.  The  implementation  of  conditions  is  closely 
monitored by the Commission, in close coordination with the Union delegations. 

2.2.2.  Information concerning the risks identified and the internal control system(s) set up to 
mitigate them 

Risks identified 

There  are  fiduciary,  policy  and  political  risks  related  to  the  proposed  MFA 
operations.  

There  is  a  risk  that  the  MFA  could  be  used  in  a  fraudulent  way.  As  MFA  is  not 
designated to specific expenses (contrary to project financing, for example), this risk 
is  related  to  factors  such  as  the  general  quality  of  management  systems  in  the 
partner’s  Central  Bank  and  the  Ministry  of  Finance,  administrative  procedures, 
control and oversight functions, the security of IT systems and the appropriateness of 
internal and external audit capabilities. 

A  second  risk  stems  from  the  possibility  that  the  partner  will  fail  to  service  the 
financial liabilities towards the EU stemming from the proposed MFA loans (default 
or  credit  risk),  which  could  be  caused  for  example  by  a  significant  additional 
deterioration of the balance of payments and fiscal position of the partner. 

Internal control systems 

The  macro-financial  assistance  will  be  liable  to  verification,  control  and  auditing 
procedures under the responsibility of the Commission, including the European Anti-
Fraud Office (OLAF), and by the European Court of Auditors as foreseen by Article 
129 of the Financial Regulation. 

Ex-ante:  Commission  assessment  of  management  and  control  system  in  the 
beneficiary country. For each beneficiary country, an ex-ante operational assessment 
of the financial circuits and control environment is carried out by the Commission, if 

EN 

25 

  EN 

necessary,  with  technical  support  from  consultants.  An  analysis  of  accounting 
procedures, segregation of duties and internal/external audit of the Central Bank and 
the Ministry of Finance are carried out to ensure a reasonable level of assurance for 
sound  financial  management.  Should  weaknesses  be  identified,  they  are  translated 
into  conditions,  which  have  to  be  implemented  before  the  disbursement  of  the 
assistance. Also, when needed, specific arrangements for payments (e.g. ring-fenced 
accounts) are put in place. 

During implementation: Commission checks of periodic partner declarations. The payment is 
subject to (1) monitoring by DG ECFIN staff, in close coordination with the EU delegations 
and  with  the  external  stakeholders,  like  the  IMF,  of  the  implementation  of  the  agreed 
conditionalities,  and  (2)  the  normal  control  procedure  provided  for  by  the  financial  circuit 
(model 2) used in DG ECFIN, including the verification by the financial unit of the fulfilment 
of  conditions  attached  to  the  disbursement  of  the  assistance  mentioned  above.  The 
disbursement  relating  to  MFA  operations  may  be  subject  to  additional  independent  ex-post 
(documentary and/or on-the-spot) verifications by officials of the ex-post control team of the 
DG.  Such  verifications  may  also  be  initiated  at  the  request  of  the  responsible  AOSD. 
Interruptions  and  suspensions  of  payments,  financial  corrections  (implemented  by 
Commission), and recoveries may be practised where needed (it has not occurred so far), and 
are explicitly foreseen in the financing agreements with the partners. 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio of "control 
costs ÷ value of the related funds managed"), and assessment of the expected levels of risk of 
error (at payment & at closure)  

The  control  systems  in  place,  such  as  the  ex-ante  operational  assessments  or  the  ex-post 
assessments,  ensured  an  effective  error  rate  for  the  MFA  payments  of  0%.  There  are  no 
known cases of fraud, corruption or illegal activity. MFA operations have a clear intervention 
logic,  one  that  allows  the  Commission  to  evaluate  their  impact.  The  controls  enable  the 
confirmation of assurance and of attainment of policy objectives and priorities. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy. 

To mitigate the risks of fraudulent use several measures have been and will be taken:  

First, the Loan Agreement will comprise a set of provisions on inspection, fraud prevention, 
audits  and  recovery  of  funds  in  case  of  fraud  or  corruption.  It  is  further  envisaged  that  a 
number of specific policy conditions will be attached to the assistance, including in the area of 
public  finance  management,  with  a  view  to  strengthening  efficiency,  transparency  and 
accountability. Also, the assistance will be paid to a specific account of the central bank of the 
partner.  

Finally, the assistance will be liable to verification, control and auditing procedures under the 
responsibility of the Commission, including the European Anti-Fraud Office (OLAF), and the 
European Court of Auditors as foreseen by Article 129 of the Financial Regulation. 

EN 

26 

  EN 

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

14.02.01.70  NDICI  —  Global  Europe  — 
Provisioning of the common provisioning 
fund [MFA loans – EAG] 

New budget lines requested – Not applicable 

Diff./Non-
diff.21 

from 
EFTA 
countries
22 

from 
candidate 
countries 
and 
potential 
candidates
23 

fromother 
third 
countries 

other assigned 
revenue 

Diff. 

NO 

NO 

NO 

NO 

21 
22 
23 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

27 

  EN 

 
 
 
3.2.  Estimated financial impact of the proposal on appropriations  

3.2.1.  Summary of estimated impact on operational appropriations  

 

X 

The proposal/initiative does not require the use of operational appropriations  

The proposal/initiative requires the use of operational appropriations, as explained below: 

Heading of multiannual financial  
framework  

6 

Heading 6 - 'Neighbourhood and the World'  

EUR million (to three decimal places) 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

Enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

TOTAL 

DG: ECFIN 

 Operational appropriations  

Budget line24 

14.02.01.70  NDICI  —  Global  Europe  — 
Provisioning of the common provisioning 
fund [MFA loans – EAG] 

Commitments 

(1a) 

40.25 

4.75 

Payments 

(2a) 

40.25 

4.75 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes25  

Budget line 
14.20.03.01 

TOTAL appropriations 

Commitments 

Payments 

(3) 

(4) 

Commitments 

=1a+1b 
+3 

0.15 

0.15 

40.25 

4.90 

45 

45 

0.15 

0.15 

45.15 

24 
25 

According to the official budget nomenclature. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

28 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
for DG ECFIN 

Payments 

=2a+2b 

+3 

 TOTAL operational appropriations  

Commitments 

Payments 

  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADING 6 
of the multiannual financial framework 

Commitments 

=4+ 6 

Payments 

=5+ 6 

40.25 

4.90 

40.25 

40.25 

4.75 

4.75 

0.15 

40.25 

4.90 

40.25 

4.90 

If more than one operational heading is affected by the proposal / initiative, repeat the section above: 

  TOTAL  operational  appropriations  (all 
operational headings) 

Commitments 

Payments 

TOTAL  appropriations  of  an  administrative  nature  financed 
from  the  envelope  for  specific  programmes  (all  operational 
headings) 

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADINGS 1 to 6 
of the multiannual financial framework 
(Reference amount) 

Commitments 

=4+ 6 

Payments 

=5+ 6 

45.15 

45 

45 

0.15 

45.15 

45.15 

Heading of multiannual financial  
framework  

7 

‘Administrative expenditure’ 

This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative 
Financial Statement (Annex 5 to the Commission decision on the internal rules for the implementation of the Commission section of the general 
budget of the European Union), which is uploaded to DECIDE for interservice consultation purposes. 

EN 

29 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

EUR million (to three decimal places) 

DG:ECFIN 

 Human resources  
 Other administrative expenditure  

TOTAL DG ECFIN 

Appropriations  

TOTAL appropriations 
under HEADING 7 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 7 
of the multiannual financial framework  

Commitments 

Payments 

3.2.2.  Estimated output funded with operational appropriations  

Indicate 
objectives 

EN 

Year 2024 

Year 2025 

Year 2026 

Year 2027 

TOTAL 

Commitment appropriations in EUR million (to three decimal places) 

30 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Type26 

Number  Cost  Number  Cost  Number 

Cost 

Number 

Cost 

Total 
number 

Total cost 

and outputs 

 

- Output 1 

Provisioning of the 
External Action 
Guarantee 

- Output 2 

Ex-post evaluation 

Subtotal for specific objective No 1 

TOTAL COST 

1 

1 

1 

40.25 

- 

- 

- 

- 

- 

- 

1 

1 

- 

- 

4.75 

0.15 

1 

1 

1 

1 

0.15 

0.15 

45 

0.15 

2 

2 

26 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 

EN 

31 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.  Summary of estimated impact on administrative appropriations  

The proposal/initiative does not require the use of appropriations of an administrative 

X 
nature  

The proposal/initiative requires the use of appropriations of an administrative nature, 

 
as explained below: 

EUR million (to three decimal places) 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

TOTAL 

HEADING 7 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 7 
of the multiannual 
financial framework  

Outside HEADING 7
of the multiannual 
financial framework  

27 

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 7 
of the multiannual 
financial framework  

TOTAL 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that are already assigned to management of the  action and/or have been redeployed within the 
DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the  managing  DG  under  the  annual 
allocation procedure and in the light of budgetary constraints. 

27 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU programmes 
and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

32 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.1. 

Estimated requirements of human resources  

X  The proposal/initiative does not require the use of human resources.  

 

The proposal/initiative requires the use of human resources, as explained below: 

Estimate to be expressed in full time equivalent units 

Year 
2024 

Year 
2025 

Year 
2026 

Year 
2027 

20 01 02 01 (Headquarters and Commission’s Representation 
Offices) 

20 01 02 03 (Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

20 02 01 (AC, END, INT from the ‘global envelope’) 

20 02 03 (AC, AL, END, INT and JPD in the delegations) 

XX 01 xx yy zz 

28

- at Headquarters 

- in Delegations  

01 01 01 02 (AC, END, INT - Indirect research) 

01 01 01 12 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or 
have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which  may  be  granted  to  the 
managing DG under the annual allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Officials 
temporary staff 

and 

Director Dir. D: Supervise and manage the operation, liaise 
with  Council  and  Parliament  for  the  adoption  of  the 
the  Memorandum  of 
the  approval  of 
Decision  and 
Understanding  (MoU),  negotiate 
the 
the  MoU  with 
authorities  of  Jordan,  review  reports,  lead  missions  and 
assess progress with conditionality compliance. 

HoU/DHoU  Dir.  D:  Assist  the  Director  in  managing  the 
operation,  liaising  with  Council  and  Parliament  for  the 
adoption  of  the  Decision  and  the  approval  of  the  MoU, 
negotiating  with  the  authorities  of  Jordan  the  MoU  and 
Loan  Facility  Agreement  (together  with  DG  BUDGET), 
reviewing reports and assessing progress with conditionality 
compliance.  

DG BUDGET: Prepare the Loan Facility Agreement (LFA), 
negotiate  it  with  the  authorities  of  Jordan  and  have  it 
approved  by  the  responsible  Commission  services  and 
signed by both parties. Follow up the entry into force of the 
LFA. Prepare the Commission decision(s) on the borrowing 
transaction(s),  follow  up  the  submission  of  the  Request(s) 
for Funds, select the banks, prepare and execute the funding 
transaction(s)  and  disburse  the  funds  to  the  country.  Carry 

28 

Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

33 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
the  back-office 

out 
the 
activities 
reimbursement  of  the  loan(s).  Prepare  the  corresponding 
reports on these activities. 

follow  up 

to 

External staff 

Desk  economists,  MFA  Sector  (Dir.  D):  Prepare  the 
Decision and MoU, liaise with the authorities and the IFIs, 
conduct review missions, prepare Commission staff reports 
and  Commission  procedures  related  to  the  management  of 
the  assistance, 
the 
operational assessment and the ex-post evaluation.  

liaise  with  external  experts  for 

EN 

34 

  EN 

 
 
 
3.2.4.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

can  be  fully  financed  through  redeployment  within  the  relevant  heading  of  the 

 
Multiannual Financial Framework (MFF). 

requires use of the unallocated margin under the relevant heading of the MFF and/or 

 
use of the special instruments as defined in the MFF Regulation. 

 

requires a revision of the MFF. 

3.2.5.  Third-party contributions  

The proposal/initiative: 

X does not provide for co-financing by third parties 

 

provides for the co-financing by third parties estimated below: 

Appropriations in EUR million (to three decimal places) 

Year 
N29 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary 
to show the duration of the 
impact (see point 1.6) 

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
co-financed  

29 

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the 
expected first year of implementation (for instance: 2021). The same for the following years. 

EN 

35 

  EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.3.  Estimated impact on revenue  

X 

 

 

 

The proposal/initiative has no financial impact on revenue. 

The proposal/initiative has the following financial impact: 

on own resources  

on other revenue 

please indicate, if the revenue is assigned to expenditure lines  

EUR million (to three decimal places) 

Appropriations 
available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

Impact of the proposal/initiative30 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

For assigned revenue, specify the budget expenditure line(s) affected. 
Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information). 

30 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 20 % for collection costs. 

EN 

36 

  EN