Source: EURLEX
Language: en
Format: md

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# 52012SC0116

**JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Jordan Progress in 2011 and recommendations for action Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Delivering on a new European Neighbourhood Policy /\* SWD/2012/0116 final \*/**

  

1.
Overall assessment and recommendations

This document reports on progress made on
the implementation of the EU-Jordan ENP Action Plan between 1 January and 31
December 2011, 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. For information on regional and multilateral
sector processes in the context of the Partnership for Democracy and Shared
Prosperity, readers should also refer to the Partnership for Democracy and
Shared Prosperity progress report.

2011 was a politically and economically
challenging year for Jordan: three successive governments in nine months, a
worsening economic outlook, increasing unemployment, a deepening budget
deficit, the decline of foreign investments and increasing energy supply costs all
add up to a volatile picture. In
contrast to other countries in the region, protesters in Jordan did not call for regime change but rather for reform of the existing political
system. Demonstrations initially focused solely on economic claims but
gradually developed a more political agenda. Calls for greater
political participation, government accountability and transparency have featured
as often in the protesters’ declarations as calls for increased job
opportunities.

Despite the difficult context, Jordan made an important quality leap in its political reforms’ process through the
adoption in September of far-reaching constitutional amendments. The latter
address a number of priorities agreed in the framework of the new EU-Jordan ENP
Action Plan negotiated in 2010, in particular the establishment of an independent
electoral commission, greater accountability of the government, the empowerment
of political parties through the revision of legislation and the prohibition of
torture. In other cases, the amendments go beyond Jordan’s ENP Action Plan
commitments, i.e. the establishment of the Constitutional Court, limitation of
the government’s ability to enact provisional (temporary) law and new, more
restrictive, rules on the dissolution of the Parliament.

The Public Gatherings Law which entered
into force in May introduced some positive changes in terms of freedom
of expression and assembly. As far as freedom of the press is concerned,
journalists and online media had confrontations with security agencies, notably
when reporting on demonstrations. Journalists were verbally and physically
attacked and news websites were closed down. Jordanian authorities were
criticised for hounding journalists and for failing to hold police accountable.
Although the fight against corruption is high on the government agenda,
corruption remains widespread.

Following a
period of modest growth and gradual recovery from the global financial crisis
throughout 2010, the Jordanian economy was affected by the Arab Spring events
and the conflict in neighbouring Syria, notably through the external sector and
the fiscal-policy response to domestic social pressures. The emergency fiscal
measures adopted by the government in early 2011 could possibly interrupt progress towards
fiscal consolidation, while delaying reforms in the public subsidy system. At
the same time, the development and modernisation of the tax system remains a
challenge and a major objective of the public finance management reform program
supported by the EU.

Jordan continued to focus on the
enhanced use of renewable energy sources.

The Protocol for the Dispute Settlement in bilateral
trade that entered into force in July 2011 constitutes
a concrete achievement of EU-Jordan cooperation. Technical preparations for
ACAA negotiations progressed but adoption of the corresponding laws did not.
The reforms of public finance management advanced in some respects

The first meeting of the Jordan-EU
Task Force took place on 22 February in Jordan. The Task Force has been
established to deepen the EU-Jordan relations, support and encourage the
political and economic reforms and enhance effective coordination between the
EU and its Member States, as well as other European and international bodies.

In recognition of the efforts already made
by the government, Jordan will receive an additional financial envelope of EUR
70 million to be made available in 2012, of which EUR 30 million immediately,
through the new Support for Partnership, Reform and Inclusive Growth (SPRING)
programme, focusing on good governance and economic growth (notably support to
small and medium-sized enterprises and vocational training).

On the basis of this year’s report and with
a view to sustained implementation of the ENP Action Plan in 2012, Jordan is invited to:

·
Adopt the law creating an independent electoral
commission, the electoral law, the political parties’ law and the law on the
establishment of the constitutional court, and ensure their effective
implementation.

·
Intensify the fight against corruption as it
undermines the country’s political, economic and social development.

·
Increase efforts to eradicate violence against
women and to promote their integration in politics, socio-economic
life through promoting women entrepreneurs, women’s participation in the labour
market and in education, in line with the recommendations listed in the
preliminary report issued in October by the UN Special Rapporteur on discrimination
against women.

·
Strengthen the independence and impartiality of
the judiciary as well as its administrative capacity, including strengthening
the financial and administrative independence of the Judicial Council.

·
In the light of the constitutional amendment outlawing
torture, proceed with the ratification of the Optional Protocol to the
Convention against Torture and Other Cruel, Inhuman or Degrading
Treatment or Punishment.

·
Prevent any kind interference in mainstream and
online news portals, to ensure the freedom of the press.

·
Ratify the regional Convention on pan-Euro-Mediterranean
Rules of Origin.

·
Pursue regulatory convergence to support efforts
to increase exports and to prepare an Agreement on Conformity Assessment and
Acceptance of industrial products and, eventually, a Deep
and Comprehensive Free Trade Agreement.

·
Implement the recently adopted plans for
improved internal audit and control in the Audit Bureau and the Ministry of
Finance.

·
Continue to develop renewable energy sources.

2.
Political dialogue and reform
Towards
Deep and Sustainable Democracy

Influenced by
other countries in the region, Jordan also witnessed in 2011 mass
demonstrations calling for political and economic reforms and fight against the
endemic corruption spreading at different levels. In response to the evolving
domestic political context and increasing demand for reforms, HM King Abdullah
set up the National Dialogue Committee and the Royal Committee on
Constitutional Review in March and April respectively.

The National
Dialogue Committee, chaired by the Senate President Taher Al Masri,
included over 50 representatives of political parties, journalists, lawmakers
and civil society. The Islamic Action Front was invited but declined to take
part. The National Committee was tasked with putting forward consensus based
drafts for the electoral and political parties’ laws. In June, it presented a
number of proposals including: the establishment of an independent electoral
commission overseeing the elections process (in lieu of the Ministry of
Interior); a new draft law making it easier to form political parties; and in
order to encourage participation, the decrease of the number of people required
to found a party was cut from 500 to 250, including at least 25 of whom have to
be women.

The Royal
Committee on Constitutional Review, chaired by Ahmad Al-Lozi, former PM and
President of the Senate, was entrusted with reviewing the Constitution.
In August, the Committee submitted its recommendations to Parliament. At the
end of September, after introducing several changes, the Parliament endorsed 42
constitutional amendments which entered into force on 1st October.

The constitutional amendments
represent a step forward for Jordan on its path of political reform.
They are in line with the priorities agreed under the new EU-Jordan ENP Action
Plan negotiated in 2010. Some of the main amendments include:

·
Establishment of a Constitutional Court

·
Establishment of an independent commission to
oversee and manage elections

·
Enhancement of civil liberties: any infringement
of rights and public freedoms or of private life becomes a crime punishable by
law

·
Prohibition of torture

·
Limitation of the government’s ability to enact provisional
(temporary) laws

·
Abolition of military trials for civilians and
limitation of the jurisdiction of the State Security Court

·
A system of greater accountability for ministers

·
Reinforcement of judicial independence

·
New rules on dissolution of the Lower House; extension
of the ordinary session of the Parliament; suppression of the right to hold dual
nationality for Jordanian ministers and MPs

·
The suppression of the King’s prerogative to
postpone elections: however, the sovereign retains the right to appoint the
Prime Minister (and all senators).

In his
government-policy statement of 23 November to the Lower House, PM Al-Khasawneh
announced that the electoral and political parties’ laws and the one on the
establishment of the Constitutional Court would be submitted to the Lower House
for debate in January, February and March 2012 respectively. On 27 December
2011, the government adopted the Independent Electoral Commission Law which was
submitted two days later to the Lower House for debate. The Law establishes an
independent body to organise and supervise of elections. At the time of writing,
the Law is still being debated by the Parliament and therefore subject to
possible amendments. The draft law does not provide for adequate financing for the
new body.

These draft
laws represent the backbone of the ongoing political reform process. Their adoption by the Parliament should pave the way for consolidating
the institutions safeguarding democracy, good governance and the rule of law,
as well as ensuring to genuine political pluralism and to the empowerment of
political parties. The implementation of these laws is a key requirement for meeting the aspirations of the Jordanian people.

The EU will
provide assistance to Jordan to ‘Support Democratic
Governance’ under a financing agreement signed in December. In that context,
support will be provided to the Lower House to fulfil its legislative and
oversight role and to engage in policy dialogue with civil society.

In October, the
government announced that the municipal elections (due in December) were
postponed sine die and that the new Municipalities Law would be revised.

The revised Public Gatherings Law mentioned
in last year’s report was adopted by the Parliament in March and entered
into force in May. The Law introduces some positive changes in terms of freedom
of expression and assembly. The organisers of public gatherings no longer
need the approval of the Ministry of Interior and the clause setting the
maximum number of organisers at seven was also removed. Moreover, organisers
are now required only to notify the authorities 48 hours prior to the event. However,
the National Centre for Human Rights (NCHR) took the view that some of the
amendments were not in line with the Constitution and the relevant
International Conventions to which Jordan is party. It
called for setting up objective and specific limits the authority of the
governor to break up a gathering and requested that the governor and the
security forces be required to consult with the organisers in the event of any
breach of security or public order before breaking up the gathering.

As regards freedom
of the press, mainstream and online news portals still had confrontation
with security agencies on several occasions notably when reporting on
demonstrations. In February, Ammon News online news website was hacked and
closed down for a few hours allegedly for publishing a statement by the ‘Group
of 36’. In 2011, several journalists were verbally and physically attacked by
thugs and/or security forces at four major demonstrations. The Centre for
Defending the Freedom of Journalists stated that the attacks on journalists
which took place in July were ‘premeditated, intentional, and systematic’. International
non-governmental organisations (NGOs) criticised the Jordanian
authorities for hounding journalists and for failing to hold police
accountable.

In April, the
government endorsed a seven-point code of conduct regulating the government’s
relationship with the media. Unlike the 2010 code of conduct, it allows journalists to work in the public sector. The Press and Publications Law, in force since October, focusses
mainly on e-media and gives news websites the option to register and receive the
benefits of access to state press briefings.

The spread of corruption
in Jordanian society remains a matter of serious concern. Jordan’s ranking in the 2011 Transparency
International Corruption Perceptions Index deteriorated from 50th
in 2010 to 56th in 2011. During the
reporting period, the fight against corruption remained
a key priority of the successive governments with however limited tangible
results. King Abdullah underlined on several occasions that combating
corruption is a priority and any public institution can be subject to scrutiny
by the Anti-Corruption Commission. A number of scandals allegedly involving
senior politicians were reported in 2011.

In September 2011, the Lower House adopted the
Anti-Corruption Commission Law, introducing inter alia a fine (of
between 30,000 and 60,000 Jordanian Dinars) for those charged with
character assassination. The relevant article, strongly criticised by the press,
politicians and activists, was eventually rejected by the Senate in early
January 2012.

A EUR5 million EU budget-support
intervention for the security sector will promote the rule of law and the
accountability and transparency of law enforcement, in order to strengthen
democratic and good governance and to foster a civilian culture in the security
sector.

Other human rights and
governance-related issues

In June 2011, Jordan became a member of the
UN Human Rights Council. EU-Jordan cooperation in the multilateral context has
further developed. Jordan also
supported a number of EU initiatives in the UN context, e.g. the UN resolution
on EU work in the UN General Assembly.

Since May 2006,
Jordan has continued to apply a de facto moratorium on the application
of the death penalty. Jordan has not ratified the 2nd
Optional Protocol to the International Covenant on Civil and Political rights.

International
and local NGOs urged the Government in May to take steps to prevent torture
‘in the light of allegations of severe abuse’ of detainees. The National Centre
for Human Rights (NCHR) also called on the government to sign the Optional
Protocol to the Convention against Torture and Other Cruel, Inhuman or
Degrading Treatment or Punishment in the light of the positive constitutional
amendment adopted at the end of September outlawing torture.

Jordan needs to make additional efforts to eradicate violence against
women, also by introducing further measures to promote their integration into
politics, the economy, education and employment areas.

Children born to Jordanian women married to
foreigners still cannot acquire Jordanian citizenship thus depriving
them of the right to public education and healthcare. Similarly their foreign
husbands do not enjoy same civic rights as Jordanian men married to foreigners.
According to local NGO figures, approximately 66,000 Jordanian women are
married to foreigners and those with children need to obtain security
clearances, residence permits and medical reports for their ‘foreign’ children.

The temporary Law on honour crimes (introduced by the
Government in 2010) was endorsed by the Lower House in January 2011 and adopted
by the Senate in March.

In September, a
new Municipalities Law entered into force. The law allows the creation of
municipalities ‘for communities where the population exceeds 5,000, provided
that half the community members are in agreement". However, in a large
number of cases the Minister of Municipal Affairs was forced by popular
pressure to establish new municipalities without the consultation process required
by the Law. In early October, 63 MPs signed a statement criticising the
government for its policy of redrawing municipal boundaries. In mid-October,
the government decided to increase the tax on fuel and derivatives from 6 to 8%
in order to finance the new municipalities. The law increases women’s quota
from 20% to 25% of municipal and council positions.

Cooperation on Foreign and
Security Policy, regional and international issues, conflict
prevention and crisis management

The EU-Jordan political dialogue on
foreign and security matters has further developed notably at the most senior
level, with a frequency never achieved before.

Jordan remains an active supporter of a
comprehensive solution to the Middle East Peace Process, also by facilitating
direct talks between the Palestinians and Israelis as part of the Quartet
process.

3.
Economic and social reform
Macroeconomic framework and functioning of the market
economy

The political
turmoil caused a slowdown in exports, remittances and foreign direct investment
(FDI) inflows in the first quarter of 2011. This was mitigated by the rebound
of key economic sectors during the rest of the year and real GDP growth attained 2.5% (against 2.3% in 2010). Inflation fell to 4.5 % on
average, compared to 5% in 2010, largely due to the absence (since January
2011) of pass-through of international oil process to domestic markets and
prudent monetary policy measures.

Rising global
commodity prices combined with weak performance of the tourism sector (-20%)
and workers’ remittances (-4.5%) have contributed to considerably widening the
current account deficit to 9.5%  of GDP for 2011. Net capital inflows have
shown a downward trend following Jordan’s sovereign-debt downgrading in February and November. FDI inflows declined from 6.2% of GDP in 2010 to 5.4%. The Amman
Stock Exchange index fell by nearly 12% in comparison to its level at the end
of 2010.

The budget
deficit reached 6.1% of GDP in 2011 following implementation of expansionary fiscal
policies and reduced public revenues, up from 5.4% in 2010, while the public
debt increased slightly to 68.5% of GDP (against 66.8% in 2010). Several
external and domestic factors have taken their toll on the
state finances. For example, the repeated terrorist attacks on the pipeline in Egypt used to export gas to
Jordan and Israel are estimated to have cost the state
budget 1.8 billion Jordanian dinars
(JD) (or about 8% of GDP) in 2011 due to the need to use alternative sources of
energy (diesel and fuel oil). Financial-market conditions have remained sound
overall, partly due to the dinar being pegged to the US
dollar and the adoption by the Central Bank of Jordan (CBJ) of good-governance
regulations. In order to encourage commercial bank
lending, the Bank raised its key interest rates by 25
basis points.

Jordan has
advanced with reforms to improve the business environment, including by
strengthening the legal framework for public private partnerships. According to
the World Bank ‘Doing Business 2012’ report, Jordan now ranks 95th
out of 183 countries following progress in the areas of starting a business,
dealing with construction permits, registering property and trading across
borders. To further support private sector development,
the CBJ has recently issued new temporary regulations to facilitate the access by
small and medium-sized enterprises (SMEs) to bank credit.

Employment and cohesion policy

The unemployment level, at 12.9% of the labour force, showed a modest increase in
comparison to 2010 levels (12.5%). The highest unemployment rates were recorded
in the age groups 15-19 and 20-24 years, some 34% and 27% respectively. 
Participation by women in the labour market (15%) remains one of the lowest in
the world. Structural problems continue to hamper the labour market in Jordan,
such as a continuing trend towards declining real wages and a low
skills/low-productivity balance, due to the presence of large numbers of
low-paid foreign workers (around 24% of the total workforce in 2011). The annual labour growth rate is estimated at 4% to 5%. A significant number
of new jobs go to non-Jordanians

Following a
participatory approach led by the Social Security Corporation, Jordan adopted a national employment strategy in May 2011. However, the
related action plan is still being finalised and will be launched in second
quarter of 2012. In addition, the capacity and resources to co-ordinate and
implement the strategy are lacking. A poverty pockets empowerment programme was
launched in June 2011, benefitting 32 regions classified as the most deprived.

In the area of social protection,
social-security coverage has progressed well since its start in 2008. In 2011,
all the governorates were reached by the programme, achieving coverage of more
than 60% of all (formal) workers at the end of 2011.  Maternity and
unemployment insurance schemes, adopted in 2010, became operational as of
September 2011. The strategy to be adopted by the Social Security Corporation
for the period 2014-2016 was approved in December 2011; EU technical assistance
contributed to this outcome.

In terms of social rights, Jordan
established a National Pay Equity Committee in July 2011, co-chaired by the
Ministry of Labour and the Jordanian National Women’s Commission. The Committee
aims to promote women’s participation in the labour market, particularly
through implementation of international labour standards on equal remuneration
and non-discrimination.

A substantial package of measures was drawn
up to strengthen social rights, provide decent working conditions and ensure
that labour standards comply with International Labour Organisation (ILO)
commitments. Jordan has not ratified the 1948 ILO Convention on Freedom of
Association and Protection of the Right to Organise; nor do government regulations
on labour unions comply with international standards.

Rights of migrant workers in general and of domestic workers in particular lack proper protection
and measures to enforce legislation on this issue are still insufficient.

4.
Trade-related issues, market and regulatory
reform

The EU was for
many years Jordan's leading trade partner and main source of imports. Since
2008 it has become Jordan's second trade partner - behind Saudi Arabia - covering 15.5% of total
trade and 2.1% of Jordanian imports. Total trade with the EU amounted to
approximately EUR3.5 billion in 2011. The EU was Jordan's largest source of imports (20.1%) and the seventh largest
destination of exports (3.7%). Conversely, Jordan ranked 65th among EU's trade
partners, which resulted in a chronic and significant trade deficit with
the EU, amounting to EUR 3,25 billion in 2011).

Tariff dismantling proceeded as planned in
the EU-Jordan Association Agreement. The Jordanian Customs Department issued in
May 2011 a circular on the further tariff dismantling for the industrial
products imported from the EU listed under Annexes III and IV, and the Annex to
Protocol 2. Another positive development was the entry into force of the
EU-Jordan dispute settlement Protocol in July 2011.

During 2011, minor trade barriers
persisted, namely on issues related to sanitary and phyto-sanitary issues. Jordan
continued to impose safeguards on imports of ceramic tiles.

Jordan informed the EU that the Council of
Ministers has taken the decision on 14/12/2011 to cease the safeguard measure
imposed on the imported ceramic tiles and entered into force on 16 December 2011.

In February 2011 Jordan agreed with the EU
on the scope of future negotiations on trade in services and establishment.
These negotiations will be embedded in the framework of the Deep and
Comprehensive Free Trade Agreement negotiations, for which the EU Council
mandated the Commission in December 2011.

The customs administration
co-ordinates, under the single window concept, work of all agencies operating
at the border. The number of
companies participating in the ‘Golden List’ programme, facilitating trade for  compliant authorised economic operators, increased in 2011 up to 34. The
implementation of pre-arrival processing of declarations was pending. Jordan
achieved most of the objectives of the 2008-2010 Strategic Plan: facilitating
movement of goods and persons (90%), and developing the customs infrastructure
and general performance (93%). In July 2011, Jordan
signed the regional Convention on pan-Euro-Mediterranean preferential rules of
origin. Jordan did not implement its new Customs Law
yet.

The Gulf Cooperation Council (GCC) welcomed
Jordan’s request for accession in May 2011. Depending on the degree of Jordan's
participation, the adaptation of the Jordanian regulations to those of the GCC
could involve changes in several areas, including the mechanisms for customs
regulations and the reduction of duties, which would reduce customs revenues
because customs duties in Jordan are higher than in the GCC states.

In the area of free movement of goods
and technical regulations, preparations to negotiate an Agreement on
Conformity Assessment and Acceptance of Industrial Products (ACAA) continued.
Jordan had chosen electrical products, toys and gas appliances as priority
sectors. Amendments to the law on standards and metrology as well as a draft
accreditation law have been presented to the newly elected Parliament. Their
adoption has been pending since 2008.

A twinning project started in October 2011
in order to support the Jordanian Standards and Metrology Organisation
implementing the 2009 Road Map for the conclusion of the ACAA. It will also
cover the reorganisation of the market surveillance system.

In the area of sanitary and
phyto-sanitary issues, Jordan pursued work on a new food law, aiming at
approximation with EU standards. Cooperation with the EU, including
through twinning and TAIEX, focused on phyto-sanitary capacity building, the
strengthening of laboratories, better meat hygiene during slaughter and staff
training.

No changes in
the rules on the establishment were introduced and 100% foreign
ownership is still banned in transport, insurance agents, travel agencies and
tour operators.

The Parliament
has not yet dealt with the amendments to company law (to reduce the
minimum capital of limited liability companies from 30.000 dinars to 1 dinar and
to shorten the registration period).

Jordan’s business environment
suffered from high energy prices (see energy section). Jordan’s
ranking in the World Bank’s ‘Doing Business 2012’ report shifted only
marginally from 95th to 96th. A significant improvement took place in the
trading across borders ranking from 74th to 58th. An Economic National Dialogue
Committee was established in May to formulate proposals to improve the business
climate and review fiscal policy.

No significant developments were observed
in the area of accounting and auditing. With EU support,
Jordan conducted a study on services in 2011
that helped the government to identify priority areas for its service-competitiveness
strategy: health tourism, engineering, business services, education, creative
industries, and transport and distribution.

The Central
Bank of Jordan adopted Implementation Regulations for the establishment of a
Credit Bureau, which will facilitate the provision of financial services.

Other key areas

The Income and Sales Tax Department
adopted new information systems and audit techniques including the new Audit
Tracking System at the Large and Medium-Size Taxpayer Directorates.

The 2011 revised Competition
Law entered into force in October, authorising the government to regulate food
prices and markets.

Jordan’s record on intellectual property rights (IPR) is improving but a large proportion of
videos and software sold in the marketplace continues to be pirated. Jordan is
examining ways to strengthen IPR enforcement, including granting enforcement
officers ex-officio authority to seize pirated items and bring cases against
violators. Jordanian customs procedures to combat IPR
infringements are to a large extent aligned with EU ones.

Jordan changed its 2010 decision to merge
the three procurement departments in Ministry of Finance, Ministry of
Public Works and Housing and Ministry of Health. In July 2011, experts were
tasked to finalise a unified by-law suitable for the work of the three
procurement departments, and in harmonization with the international standards.

Jordan continued introducing international
standards and best practices e.g. in the area of migration statistics, and
improved its IT infrastructure according to the National Statistical
Strategy 2008–2012.

Concerning public internal financial
control, the Ministry of Finance and Audit Bureau signed in March 2011 a
Memorandum of Understanding,
ultimately leading to withdrawal of the Audit Bureau
from the pre-payment audit after the establishment of financial control units in the public institutions under the guidance of the Ministry of
Finance. SIGMA supported the Audit Bureau to implement
its Strategic Plan 2011-2015 and the Ministry of Finance to elaborate a Road
Map Activity Plan for the reform of the internal control and the internal audit
system. In November 2011, the Audit Bureau made for the first time its Annual
Audit Report (of 2010) public and accessible on its website.

Jordan
participated in implementing the 2011-2012 industrial cooperation work
programme that Euro-Mediterranean Industry Ministers adopted on 11-12 May 2011
in Malta. However, progress in implementing the Euro-Mediterranean Charter for
Enterprise was hampered by the budget deficit.

There is no
consolidated enterprise policy. Very slow progress has been recorded in
the development of a comprehensive export-promotion strategy that was finalised
in August 2011. The Government focused its effort in 2011 on a mechanism to
encourage bank lending to SMEs. A $250 Million loan-guarantee mechanism is
being established. In March 2011, the Government announced an SME Fund ($150-200
million) to create income-generating opportunities outside the capital.

5.
Cooperation on justice, freedom and security

Although Jordan is not a signatory to the 1951
Refugee Convention, it has given hospitality to a very large community
of refugees from the occupied Palestinian territories and Iraq. Moreover,
according to UN sources, Syrians continue to arrive in Jordan and by the end of
2011 some 2 500 Syrians were registered with the UNHCR. However, the number of
Syrians fleeing to Jordan has been increasing since then.

In December 2011, two EU-funded projects
were put in place with the aim of improving working and living conditions of migrant
workers.

On the occasion of the EU-Jordan Social and
Migration Working Group in June 2011, Jordan expressed interest in engaging in
a Dialogue on Migration, Mobility and Security, (which includes the option
of concluding a Mobility Partnership), as offered by the EU to southern
Mediterranean countries.

With reference to money laundering,
Jordan continues to seek participation in the Egmont Group.

Jordan is a transit country for drugs
trafficking from Iraq. Measures were taken to increase public awareness about
drugs.

In the area of judicial cooperation,
Jordan has not yet acceded to the 1980 Hague Convention on the Civil Aspects of
International Child Abduction or the 1996 Convention on Parental Responsibility
and the Protection of Children. Jordan has not taken steps either to accede to
the Council of Europe conventions on the Transfer of Sentenced Persons and on
Cybercrime with their respective Additional Protocols.

6.
Transport, energy, environment, the information
society, research and innovation

Jordan continued to implement the National
Transport Strategy 2009–2011. In January 2011, Jordan, Syria, Lebanon and
Turkey agreed to develop a joint sectoral outlook for economic integration
through unified transport legislation to comply with EU and
international standards. The Parliament ratified altogether four laws, of which
one is permanent (on Land transport regulatory Commission) and three temporary
laws, (namely: the Laws on Railroads establishing the Jordan Railway
Corporation, on Passenger Public Transport). The budgetary situation of Jordan,
as well as the international debt crisis has hindered the progress of major
infrastructure projects (like the National Railway Network) negotiations with
lenders. Maintaining a high level of aviation safety in
Jordan is of utmost importance; cooperation between
Jordan and EU continues to strengthen aviation
oversight.

Energy-dependent
Jordan pursued efforts to reduce the import bill and to diversify energy
supply. It took steps towards the use of more domestic resources (gas, oil
shale, uranium for nuclear energy generation, renewables) and explored gas
import options (Liquid Natural Gas, Iraqi imports). 2011 was marked by several
interruptions of Egyptian gas imports when sections of the import pipeline were
blown up. This led to a considerably higher energy bill and electricity
tariffs. In December 2011, Jordan and Egypt signed a new gas supply agreement.
Jordan agreed with Iraq an increase in oil imports. Jordan continued
liberalisation of the oil sector and the expansion of the refinery. Jordan
implemented energy efficiency measures in public facilities. Preparations for
the development of renewable energy facilities were pursued. These efforts are
instrumental in developing the Mediterranean Solar Plan. The EU supports capacity building in wind energy and concentrated solar power. Jordan took further steps towards its first nuclear power plant.
Following the Fukushima nuclear accident, the issue of future nuclear power
generation was widely debated in the country. Preparations to build a nuclear
research reactor continued.

Jordan launched work on the third national report under the UN Framework convention on Climate Change (UNFCCC).
Sub-regional cooperation (Israel, Jordan, occupied Palestinian territory) was
launched on the impact of climate change on water availability. No new Clean
Development Mechanism project was registered at the UN level, leaving the
number of registered projects at two. Jordan is being encouraged to build
capacity and engage in the new carbon-market mechanism to be developed
following the UNFCCC Conference of the Parties 17th meeting. Jordan
is also encouraged to fully implement the Cancun and Durban agreements and in
particular to devise a low-carbon development strategy including updating
information on targets or actions that it will implement.

Jordan started
updating its strategic environment plan, with a view to further
mainstreaming environment in relevant sectors. It launched an action plan for
management of electronic waste as well as works on the third national
communication under the UN Framework convention on Climate Change (UNFCCC).
Jordan is encouraged to build capacity and engage in the new carbon market mechanism
to be developed following the UNFCCC COP 17. Jordan is also encouraged to fully
implement the Cancun and Durban agreement. The
government adopted a water resource reallocation policy to regulate
distribution between governorates and demand sectors, including substitution of
fresh water resources with treated waste water. Jordan
still needs to clarify its next intended steps with regard to the ratification
of the Gaborone amendment to the Convention on International Trade in
Endangered Species (CITES). The EU provided technical
assistance for updating the environment law.

In the field of
civil protection, Jordan intensified the cooperation with the countries from the
region and the exchange of best practices with the EU in the field of disaster
prevention, preparedness and response through its participation in the EU
Programme for Prevention of, Preparedness for, and Response to natural and
man-made disasters.

The Telecommunication
Regulatory Commission (TRC) concluded a market review, which enables the TRC to
impose regulatory obligations on any operator found to be dominant in the
relevant markets. These are: Fixed Broadband Market, Mobile Market, Fixed
Narrowband and Dedicated Capacity Market. Mobile market
leader Zain launched 3G network services in March 2011 that has resulted in
quick elimination of Jordan Telecom Group, 3G monopoly of the market (first 3G license was granted to Orange Mobile in 2009). Alternative
technologies for providing broadband service are being deployed (i.e. Wi-Max,
Mobile Broadband and Cables), leading to further
competition among service providers. A twinning project "Institutional strengthening of the Telecommunications Regulatory
Commission in Jordan" started in September 2011.

In the area of research and innovation,
the High Council for Science and Technology is
finalising the draft of a National Science and Technology Innovation Policy and
Strategy 2012-2016. The 2nd phase of the
Support to Research and Technological Development and innovation initiatives
and strategies programme was officially launched in 2011 with an EU
Contribution of EUR5 million.  As
regards the participation of Jordan in the 7th Framework Programme,
up to mid-October 2011, Jordan had 21 signed grant agreements, involving 28
participants and benefiting from an EU contribution of EUR 2.7 million. The
participation of Jordan in the Framework Programme is satisfactory considering
the low number of inhabitants and researchers in comparison with other
Mediterranean Partner Countries. The main thematic areas of main interest are
Environment (including Climate Change), Information and Communication
Technologies, Food, Agriculture, Fisheries and Biotechnologies and Marie-Curie
Actions.

7.
People-to-people contacts, education and health

Reform efforts in basic and higher education,
and in the vocational education and training sector (VET) need to be better
integrated and coordinated specially at the policy level. Education reform
continued steadily, with the increase of net enrolment rates in secondary
education (up to 75% in 2011), a successful parental involvement programme in
preschool education and the roll-out of a school-based development and
improvement programme. In March 2011, the Government endorsed a new teacher
policy framework (which is still to be implemented) and endorsed the
establishment of the teachers’ union. However, changes in leadership, a
shortage of classrooms especially in urban areas, important transfers of
students from private to public schools and a lack of attention given to
knowledge-society skills, had a negative impact on efforts to improve the
quality of education.  In December, the EU signed a new financial agreement
over EUR 23 million to support the multi-donor support programme to the
National Education Strategy (ERfKE II – Education Reform for the Knowledge
Economy).

In the higher education field, the Ministry
of Higher Education and Scientific Research prepared an executive development
programme for 2011-2013, aimed at increasing the quality of higher education
delivery, strengthening the education-research nexus and securing adequate
funding.  Brain drain continued to be a major problem in 2011, with many
professors and researches leaving to work in the Gulf countries.

EU-Jordan higher education cooperation
progressed well, with Jordan using exchange opportunities offered by the Erasmus
Mundus programme. Two new projects involving 10 Jordanian universities
were selected in 2011, leading to the planned mobility of 80 students and staff
(52 of these mobility schemes were financed out of the additional EU funding
allocated under the review of the European Neighbourhood Policy). Three
additional Tempus IV projects involving Jordanian universities were
selected.  Only three institutions and two Jordanian researchers participated in
2011 in the Marie Curie scheme aimed at fostering international research
collaboration.

In the vocational
education and training sector, the Centre for
Accreditation and Quality Assurance still lacks a legal basis and there is no
clarity about the provision of funding. An EU budget-support programme started
at the end of 2010, with the aim of providing new momentum to the VET sector
reform process and supporting the development of training of excellence in key
innovative sectors (including renewable energy and energy efficiency, water and
the environment). The European Training Foundation continued its support to
engage social partners in human capital development and contributed to the reform process of career-guidance development.

Jordan participated in the Euro-Med
Heritage Programme in projects concerning the management of ancient theatre
complexes, youth outreach and education and the promotion of cultural
heritage. One new Jordanian proposal was selected under the Euro-Med
Audiovisual programme.

In May 2011, Jordan adopted a youth
strategy for 2011-2015, drawn up by the Higher Council for Youth. Authorities
are already considering a revision of the strategy for 2012, given the lack of
a participatory approach in its formulation and failure to take into account
the new employment strategy. .The number of young Jordanians and Jordanian
youth workers benefitting from the exchange opportunities provided by the Youth
in Action programme more than doubled, form 63 in 2010 to 132 in 2011. One
new Jordanian project was selected in the Euro-Med Youth Programme IV.

Jordan
continued health sector reform and updated the Health Strategic Plan
2008-2012. It participated in the EU-supported ‘Episouth Plus’ project aimed at increasing health security in the Mediterranean region and South East Europe.

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