Source: EURLEX
Language: en
Format: md

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# 52014SC0074

**JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Jordan Progress in 2013 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 Neighbourhood at the Crossroads: Implementation of the European Neighbourhood Policy in 2013 /\* SWD/2014/074 final \*/**

  

1. Overall
assessment and recommendations

This document
reports on progress made on the implementation of the EU-Jordan European
Neighbourhood Policy (ENP) Action Plan between 1 January and 31 December 2013,
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 readers should also refer to the Partnership for Democracy and Shared
Prosperity progress report.

The high level
political dialogue between senior officials on foreign and security matters
continued, with the High Representative for Foreign Affairs and Security
Policy/Vice President of the Commission Catherine Ashton
visiting Jordan frequently. Commissioner Štefan Füle visited the country in
early June while HM King Abdullah made an official visit to the European
institutions in December.

Jordan continues to be affected by the Syrian crisis which is causing growing
socio-economic as well as security challenges. The EU commends the Jordanian
authorities and population for the support and extraordinary generosity they
have shown towards people fleeing the conflict in Syria. Jordan has been facing a steady and continuous wave of refugees from Syria and by the end of December more than 576 000 were officially registered with
the office of the United Nations High Commissioner for Refugees (UNHCR). The
presence of the refugees is straining the country’s natural resources (notably
water), subduing its economy and exerting tremendous pressure on its
educational system and health care services.

Acknowledging
the severe impact of the crisis, the EU has provided more than EUR 225 million
of humanitarian and development aid to Jordan over the last two years. This
financial assistance is intended to support both the refugees and the host
communities.

Despite an
unstable and extremely volatile neighbourhood, Jordan has managed to preserve
its domestic stability and has shown great resilience in the face of regional
turmoil.

Parliamentary
elections for the 17th House of Representatives took place in January
2013. For the first time, a European Union Election Observation Mission (EU
EOM) was deployed across the country to assess the whole electoral process.

According to the
EU EOM final report, the elections were technically well administered and were carried
out in a transparent manner. They were governed by the electoral law, as
amended in 2012. A number of shortcomings of this law do however undermine the
protection of universally accepted principles, such as the equality of votes
and universal suffrage.

In early January 2014, Parliament amended
the State Security Court (SSC) law in order to bring it into line with Article
101 of the Constitution, as amended in 2011, which restricts the scope of action
of this military court, but does not eliminate the possibility of civilians
being tried before it.

The
amendments to the press and publications law, adopted in September 2012,
entered into force in early June 2013. The amendments introduced a number of
requirements relating to the operation of online news portals, which the media
and civil society view as a way of imposing limits on freedom of expression and
adding liabilities for the editors-in-chief and owners for the content posted
on the sites.

In
addition to the growing influx of refugees which has placed considerable strain
on the country, Jordan’s economy has also been severely affected over the last
couple of years by the repeated disruptions to the flow
of natural gas from Egypt, which forced the government to replace cheap gas
imports with more expensive fuels. Against this background and in response to a
request for financial assistance submitted by the Jordanian government, in
December 2013 the European Council accepted a proposal from the Commission for
Macro-Financial Assistance (MFA) to provide up to EUR 180 million (in
the form of a medium-term loan). Jordan will be the first partner country in
the Southern Neighbourhood to benefit from this exceptional financial
instrument. The MFA will provide some relief from the adverse spill-over
effects of the Syrian conflict and will complement other humanitarian and
development assistance given to Jordan by the EU.

Following
the official launch in December 2012 of the EU-Jordan Dialogue
on Migration, Mobility and Security, two EU experts’
missions took place in February and July to collect
information and exchange views on certain aspects of Jordan’s policy in
relevant areas. In November, EU Member States agreed to open negotiations with Jordan for a Mobility Partnership, – including readmission and visa facilitation agreements
. The first meeting took place in December.

In November, the European Council adopted a decision to
conclude the Protocol to a Framework Agreement on the
general principles for Jordan’s participation in EU programmes, paving the way for closer EU-Jordan cooperation on a number of
specific EU policies and programmes.

In 2013, Jordan acted
upon a number of key recommendations contained in last year’s ENP progress
report, notably the adoption of an anti-corruption strategy and the
ratification of the regional Convention on pan-Euro-Mediterranean preferential
rules of origin. Other key recommendations made previously remain valid. In
line with the commitments agreed in the ENP Action Plan, Jordan should pursue the reforms process and enforce the laws adopted. Jordan is particularly invited:

·
as stipulated by the Constitution, to repeal or
amend by 1 October 2014 all laws, regulations and other legislative acts in
force relating to the Constitutional amendments adopted in 2011;

·
to continue building a more consensual,
inclusive, participatory and open political system where all Jordanians feel
represented, by amending accordingly the electoral legal framework;

·
to strengthen the independence
and impartiality of the judiciary and its administrative capacity;

·
to take concrete steps to
eradicate violence against women and promote further integration of
women in politics, economic affairs, education and employment, e.g. by ensuring
that the law on protection against domestic violence is enforced;

·
to move forward with the ratification of the Optional Protocol to the Convention against Torture and
Other Cruel, Inhuman or Degrading Treatment or Punishment;

·
to ensure freedom of expression and freedom of the
media, including by amending the relevant provisions of the Penal Code such
that violations relating to freedom of expression and freedom of the media are
no longer referred to the State Security Court;

·
to ensure freedom of association by relaxing
current regulations and creating a conducive environment for active participation
on the part of citizens;

·
to continue implementing the stand-by agreement
with the International Monetary Fund (IMF), including addressing the issues of tax
reform, to increase tax collection and the progressivity of personal income
taxation through legislative measures;

·
to take determined action to improve the
business and investment environment through legislative and regulatory measures,
with a view to enhancing growth; and

·
to continue the modernisation of public finance
control institutions, in accordance with international best practices and to implement
the Anti-Corruption Strategy 2013‑2017.

2. POLITICAL
DIALOGUE AND REFORM

Democratic
elections were held at national and local levels. No additional steps were
taken in 2013 to advance political, administrative and financial decentralisation
which would give more power to local government.

Parliamentary elections for the 17th House of Representatives
took place on 23 January 2013, with a turnout of 56.7 % of
registered voters. The EU EOM, invited by the Independent Elections Commission
(IEC), deployed over 80 observers from all EU Member States across the country
to assess the whole electoral process. In addition to foreign observers,
thousands of local observers were trained and mobilised by international and
domestic civil society organisations (CSOs). The elections were the first to be
administered by the IEC, which was established in 2012 and is financially supported
by the EU. According to the EU EOM final report, the elections were ‘organised
and conducted in a transparent and credible manner. They were technically
well-administered despite serious inadequacies in the legal framework’. It was
widely acknowledged that the IEC had perfomed its tasks in a professional way.

On 23 April, the
new government of Prime Minister Abdullah Ensour received a vote of confidence
in the lower house of Parliament with a majority of 82 votes.

Municipal
elections, which had last been held in 2007, took
place on 27 August 2013. The elections were administered by the Ministry of
Municipal Affairs, while the IEC monitored the process. Official election voter
turnout was 37.3 %. The official turnout did not however reflect the
approximately 1.25 million members of the armed- and security forces who
abstained from participating in the elections following government instructions,
despite the fact that, by law, they are eligible to vote in the municipal
elections. For the first time in Jordan, thousands of volunteers from local
CSOs observed the elections.

The legal
provisions and practices on freedom of association remained unchanged.
The law on societies maintains the right of the authorities to reject
applications to register an organisation or receive foreign funding.

Concerning
freedom of assembly, public protests directed towards both domestic and
regional affairs continued in Jordan throughout 2013, albeit on a smaller scale
than has been experienced in previous years. The police have generally handled
protests in a professional manner, and have sought to maintain a peaceful
atmosphere. Arrests of activists and protesters have continued however and several have been charged with
participating in ‘unlawful gatherings’ under Article 165 of the Penal Code and
referred to the military State Security Court (SSC).

Arrests relating
to freedom of expression continued in 2013. In March, five students from
Al-Bayt University were arrested and tried before the SSC on charges of
doctrinal and sectarian incitement for engaging in ‘devil worship’. They had
allegedly desecrated a copy of the Holy Qur’an. The students remained in
detention until mid-May, when the charges were dropped. In early July 2013, two
activists were arrested in Amman and charged with ‘inciting anti-regime
sentiment’ after attending a debate on the impact of the press and publications
law. Cases relating to peaceful expression of opinions continued to be referred
to the SSC on charges of crime other than those defined in the 2011
constitutional amendments.

As regards media
freedoms, the amendments to the press and publications law, adopted in
September 2012, entered into force in early June 2013 (after the expiration of
a nine-month grace period granted by the authorities). Access to around 250
websites was blocked as they had not registered with or obtained a licence from
the the government agency responsible for press and publications. Only those
who have been members of the Jordan Press Association for a period of at least
four years are eligible to occupy the post of editor-in-chief of an online publication.
Editors-in-chief and owners of online publications are legally responsible for
all content posted on their sites, including contributions from users. The
government stated that the intention of the law was to regulate and
professionalise the country’s media, emphasising that penalties had been waived
and reduced since the introduction of the Law. Local and international CSOs
referred to the law as an attempt to regulate online communication and
publications in violation of the provisions of the Constitution. The Universal
Periodic Review published in October 2013 by the UN Human Rights Council made
20 recommendations to Jordan relating to freedom of expression while only one was
made in 2009. The EU will continue to support civil society and media (through
a EUR10 million programme) and aims to develop the skills and infrastructure
needed for an independent, quality-based media sector, as well as strengthening
the capacity of community-based organisations and non-governmental
organisations to build awareness among citizens of the importance of
independent media.

No progress can
be reported in enhancing the effectiveness and independence of the judiciary.
The Judicial Upgrade Strategy has not been revised. The draft law on judicial
independence is still awaiting revision by the Cabinet and the draft juvenile
law has not yet been submitted to Parliament. An EU-funded project supported
the creation of 13 juvenile courts and the drafting of a specialised curriculum
to be followed by those wishing to qualify as juvenile judges. Two EU-funded
projects continue to provide support for improvements to the criminal justice
system. During 2013 civilians continued to be prosecuted before the SSC on
charges relating to speech or demonstrations, as defined in the Penal Code. No
progress has been seen in limiting the use of pre-trial and administrative
detention.

Corruption remained an issue of widespread concern in Jordanian society. Jordan was ranked 66th out of 177 countries in the 2013 Corruption Perceptions Index. On 30 June 2013,
the government approved the Anti-Corruption Strategy 2013-2017. The strategy
includes developing national anti-corruption legislation in accordance with
international standards and strengthening the Anti-Corruption Commission (ACC).
The EU assisted with the drafting of the strategy through a twinning project,
which also offered support to the ACC and other relevant agencies in other ways
e.g. by providing training on investigation skills, asset recovery, mutual
legal assistance and social media. On 22 December 2013, the Cabinet approved
the amended law for the ACC, which extends its powers by allowing it to open
branches throughout the Kingdom and to investigate corruption cases. The Royal
Committee for Enhancing National Integrity held consultative meetings in
governorates in order to develop a set of values to foster national integrity.
The National Integrity Charter was adopted and formally launched in December
2013.

Other human rights and
governance-related issues

Jordan was reviewed during the second cycle of the Universal Periodic
Review at the UN Human Rights Council on 24 October. Jordan received 173
recommendations of which it accepted 126, rejected 34 and chose to consider the
remaining 13. An inter-ministerial committee,
chaired by the Ministry of Foreign Affairs, has been set up as a result of the Review
to monitor progress made in implementing the recommendations.

A de facto
moratorium on the application of the death penalty continued to apply.
The last execution in Jordan took place in 2006. It is estimated that 106
individuals are currently on death row. Five people were sentenced to death in
2013. The number of Penal Code crimes punishable by the death penalty remained
unchanged.

Jordan did not take the steps necessary for signing the Optional Protocol
to the Convention against Torture (OPCAT). Impunity for offenders within
the police remained a concern as police prosecutors continue to have authority
over the investigation of complaints of torture against officers, as standard
practice, and trials take place in special police courts. More ad hoc training
was provided to security forces and prosecutors following the introduction of
guidelines by the Ministry of Justice in 2012.

The UN Special
Rapporteur on freedom of religion or belief visited Jordan in September 2013. Jordan was praised for ‘taking the lead in promoting peaceful
inter-religious coexistence in the region’. Jordan continued to encourage
inter-faith tolerance and respect, and to promote the 'Amman Message'. It hosted
the 16th General Conference of the ‘Royal Aal al-Bayt Academy for Islamic Thought’ in August and a two-day conference on ‘The Challenges Facing Arab
Christians’ in September, which gathered religious leaders from the region and
beyond.

Jordan has not lifted the remaining reservations under the UN
Convention on Elimination of All Forms of Discrimination against Women (CEDAW),
those being articles 9(2) and 16 (c, d and g). The law on nationality continued
to deny a Jordanian woman married to a foreigner the right to confer her
citizenship on their children. The EU continued to provide substantial support
to the cause of Jordanian women’s rights in various areas such as political
participation, economic empowerment and violence against women. It also
supported activities implemented by "UN Women" at regional level. A
regional EU-project funded several meetings which brought together governments
and CSOs of the region to prepare recommendations for the Ministerial
Conference of the Union for the Mediterranean that took place in Paris in September. Women’s organisations continued to call for reference to gender as
ground for discrimination under Article 6 of the Constitution.

The Syrian
refugee crisis has increased the problem of child labour significantly. According
to the Ministry of Labour, Syrians account for almost 70 % of all child
labour in Jordan.

The Democratic
Empowerment Programme (dubbed ‘Demoqrati’) was launched in June 2013. The
programme is implemented by the King Abdullah II Fund for Development and aims
to promote the values of democracy, to develop democratic practices in society
and to push forward the process of change in Jordanian society.

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

In December 2013,
Jordan was elected, for the third time, as a non-permanent member of the UN
Security Council for the 2014/2015 term.

Jordan and the
EU remained aligned on a number of foreign- and security policy-related issues.
Jordan continued to advocate both a political solution to the ongoing civil
war in Syria and, with regard to the Middle East peace process, direct
negotiations between the parties to resolve the conflict.

In principle Jordan maintained an open-border policy towards refugees fleeing Syria, but there were areas where
restrictions were applied. As of 31 December there were more than 576 000
registered Syrian refugees in Jordan, of which around 124 000 are living
in the Zaatari camp, 3 700 in the Emirati camp and 448 300 in local
communities, according to UNHCR figures. The EU continued to support Jordan by alleviating the burden placed on the country by the Syrian refugee crisis. More
than EUR 225 million of EU funds had been allocated to Jordan by December 2013, excluding bilateral aid from Member States.

Implementation
of two EU projects relating to conflict prevention and crisis management began
in spring 2013. The objective of the projects is to tackle violence at
universities by equipping and educating selected local youth CSOs to deal with
this problem and to reduce tensions between host communities and Syrian
refugees using measures based on conflict sensitivity and prevention and
peace-building. Measures for improving security conditions relating to the
refugees, funded by EUR 22.9 million of EU support, have begun to be
implemented by the UNHCR and IOM.

Jordan, Iraq and Lebanon strengthened the basis of their trilateral
cooperation and expressed willingness to exchange best practices with the EU in
the field of Chemical, Biological, Radiological and Nuclear
(CBRN) disaster prevention, preparedness and response. The EU made plans for
the implementation of a project with the three countries to improve the
countries’ respective national teams’ competence in dealing with HAZMAT
(Hazardous Materials). On 25 June, the EU CBRN Risk Mitigation Centre of
Excellence Regional Secretariat for the Middle East officially opened in Amman. It aims to mitigate CBRN risks of criminal, accidental or natural origin by
promoting a coherent policy, improving coordination and preparedness at
national and regional levels and offering a comprehensive approach covering
legal, scientific, enforcement and technical issues.

Jordan and the
EU started a dialogue on the control of exports of dual-use goods. The
Ministry of Foreign Affairs was designated the national focal point and
organised a round-table meeting with all Jordanian stakeholders in October to
assess the possible next steps towards further cooperation.

3. ECONOMIC
AND SOCIAL REFORM

Macroeconomic
framework[1]

Jordan’s macroeconomic performance was mixed
during 2013. Adverse external factors, including the Syrian conflict and the
resulting refugee crisis, higher oil prices, and the gas supply problems with
Egypt were broadly offset by the rebound of budget grants (reaching 3.6 %
of GDP by the end of the year, up from 1.5 % in 2012) and prudent financial
management, linked to the implementation of the adjustment programme agreed
with the IMF in 2012. Real GDP was estimated to increased
by 3.3 % compared to 2.7 % in 2012, backed by increased
capital spending by the government and domestic consumption. On the supply
side, growth was mainly driven by services, in particular those related to
tourism and the financial sector, while activity in both agriculture and the
mining sector contracted, partly due to disruptions to transport related to the
Syria crisis.

Consumer price inflation intensified in 2013 reaching an
average of 5.5 %, up from 4.8 % in the previous year.
This reflected higher global commodity prices and domestic efforts to
liberalise fuel and electricity prices.

The losses made by the state-owned electricity company NEPCO
(estimated at 1.3 % of GDP), caused mainly by repeated interruptions to
natural gas supplies from Egypt and their complete suspension since July,
continued to weigh on public finances. The mounting number of Syrian refugees
also placed a heavy burden on the state. The general government deficit (including
grants) reached 14.6 % of GDP by the end of 2013, up from 8.9 % of
GDP in 2012. Implementation of fiscal structural reforms continued, although the
pace of change was slower than expected, especially in the areas of taxation
and social security where delays in the adoption of the respective pieces of legislation
were identified. Additional external borrowing put upward pressures on public
debt, which reached 87.7 % of GDP by the end of 2013, compared to 80.2 %
one year earlier.

The current account deficit fell to 11.1 % of GDP
from 17.3 % in 2012, backed by the lower energy import bill in the first
half of the year. Owing to the improvement in the balance of trade, to the sizeable
grants from the Gulf Cooperation Council countries and to the issuance of two
successful USD-denominated domestic bonds, official reserves had increased
substantially reaching an equivalent of six months’ imports by the end of 2013
(compared to just 3.9 months at the end of 2012).

Social
situation, employment and poverty reduction

Job
creation and employment
remained among the most critical challenges for Jordan, with the highest rates among
youth. Overall, unemployment in 2013 was estimated at 12.7%,
compared to 12.2% in 2012 and it continued to be high
among those holding a bachelor’s degree or higher qualification.

There was evidence of slight progress being
made in addressing the strong mismatch between the current labour market supply
and demand. Sector-specific Surveys were launched and the first results from
the Jordan Occupational Projection Model provided information on the economy’s
needs in terms of different professions or skills. The EU provided
assistance for the implementation of the National Employment Strategy 2012-2020,
whose aims include increasing the participation of women in
the labour market and increasing youth employment. Jordan took steps to increase
the participation of women in the workforce by promoting networking and modern ways
of communicating job opportunities. The International Youth Foundation
contracted an independent IT company to revise and improve the National
Electronic Employment System.

There was no
evidence of progress on labour standards. Jordan has not ratified the International Labour Organisation Convention
No 87 on ‘Freedom of Association and Protection
of the Right to Organise’.

In January, a poverty
reduction Strategy for 2013-20
was launched. Its overall objective is to contain and reduce
poverty, vulnerability and inequality through the adoption of a holistic and
results-oriented approach targeting poor and below middle-class households.

The Social
Security Corporation began implementing its
strategic plan 2012-2016 in January, the EU technical assistance
team having completed the necessary work in its supporting role. Statistics
confirmed that 2012 targets
for social security coverage were met and that coverage stood at 62.3 %.
The social security law, needed to ensure the sustainability of
the progress achieved, remained however with Parliament.

4. TRADE
RELATED ISSUES, MARKET AND REGULATORY REFORM

EU-Jordan total trade amounted to almost
EUR 3.8 billion in 2012.[2] Bilateral trade flows
increased slightly: EU exports to Jordan increased by 5.6 %, consisting
mainly of machinery and transport equipment; EU imports from Jordan increased by 6.5 %, consisting mainly of chemicals, machinery and transport
equipment. In 2012, the EU was Jordan’s second-largest source of imports (accounting
for 17.5 % of total imports) after Saudi-Arabia (23.6 %). Jordan meanwhile was the EU’s 66th-largest trade partner, which has resulted in a significant trade
deficit for Jordan vis-à-vis the EU. On the other hand, the Jordanian balance of
trade in services is positive and has been improving since 2009.

Preparatory process for launching
negotiations on a Deep and Comprehensive Free Trade Area (DCFTA) with Jordan is well advanced (two meetings took place in 2013). Formal negotiations are expected
to start during the first semester of 2014.

In relation to
free movement of goods and technical regulations, Jordan continued to work towards establishing an adequate institutional and legal basis for
the three priority sectors (electrical products, gas appliance and toys) negotiating
the Agreement on Conformity Assessment and Acceptance of Industrial Products
(ACAA). The question of an amendment to the standardisation and metrology law
remained with Parliament. Once adopted, it will define new product safety requirements
for businesses and will establish a new conformity assessment and market
surveillance regime in Jordan consistent with EU practices. The government has
decided not to establish an independent accreditation body but to integrate
accreditation functions into a separate department within the Jordan Standards
and Metrology Department (JSMO).

The Commission continued horizontal and
sectoral assessment of legislation. The draft Jordanian legislation on the restriction
of the use of certain hazardous substances in electrical and electronic
equipment complies with the acquis. All European standards relevant to
the three priority sectors were adopted in April 2013. Jordan is an observer on ten technical committees of the European Committee for
Standardisation (CEN) and on two technical committees of the European Committee
for Electrotechnical Standardisation (Cenelec). JSMO will be the single
Notifying Authority responsible for notification of future Notified Bodies
(NBs). Three potential NBs (one for each sector) have been pre-assessed and
gaps were identified. An annual plan for the implementation of the market surveillance
strategy has been drafted. The National Market Surveillance Committee, though
not yet formally established, already holds regular meetings.

Work on customs procedures has progressed. An automated single window is available
at 50 %
of customs houses using ASYCUDA
World which contains integrated risk management. Little progress has been made
however in simplifying customs procedures at the border control at Aqaba port.
No progress can be reported concerning the adoption of a new customs law. In August, Jordan ratified the Regional Convention
on pan-Euro-Mediterranean preferential rules of origin.

An animal identification
system was introduced as the next step in developing a traceability system to
increase food safety and address sanitary and phyto-sanitary issues. A draft food law was submitted
to Parliament, but has not yet been adopted.

Jordan remained in 119th place[3] (out of 189 economies)
in the ease of doing business ranking in the World Bank’s ‘Doing Business 2014’
annual report. The business climate would significantly improve if progress
were made in the areas of access to finance, resolving insolvency, investment
protection and contract enforcement. Jordan dropped to 68th place (out of 148)
in the World Economic Forum ‘Global Competitiveness Report 2013-2014’. The main
difficulties encountered in doing business were restrictive labour regulations,
tax rates, access to finance, inefficient government bureaucracy and policy
instability. With the aim of
improving the investment climate, Jordan adhered to the OECD Declaration
on International Investment and Multinational Enterprises in November. In May,
the government sent a draft investment law to parliament.

No progress has been made in finalising
the services development master plan,
which is expected to provide a comprehensive strategy for the services sector
and was initially developed under the EU-funded Jordan Services Modernisation
Programme. Jordan reiterated its intention to maintain services as part of the
negotiations on the DCFTA.

There were no
substantial regulatory changes in the area of establishment, company
law and movement of capital.

Other key areas

There has been no
progress made towards adopting the draft law on income tax, the aim of
which is to introduce a more progressive structure of rates. The Income and
Sales Tax Department started referring cases to courts to claim back tax
arrears. In July 2013, the government increased the special tax on mobile
phones from 8 % to 16 %, and the tax on mobile phone subscriptions
from 12 % to 24 %. Telecom service providers and sector
representatives warned of the negative impact of this decision on the local
market.

The area of intellectual property rights
did not undergo any significant legislative developments. In June, Jordan hosted a regional workshop organised by WIPO and
the Ministry of Industry and Trade on the topic of building respect for intellectual
property.

Some progress was made
towards boosting competitiveness. A national innovation strategy was finalised in
May and a national entrepreneurship and
micro, small and medium enterprises development strategy and an export promotion
strategy were in the final stages of approval (TBC). Jordan continued to show
an active commitment to the ten aspects of the Euro-Mediterranean Charter for Enterprise. An assessment of the small and medium-sized enterprise (SME) policy
environment was carried out with reference to the Euro-Mediterranean Charter
for Enterprise and the Small Business Act for Europe. Preliminary findings
showed that the most significant development is the elaboration of a new SME
development strategy for 2014-2018. There has been limited progress on
regulatory reform, except for the introduction of a single company
identification number and the approval of legislation regulating the
establishment of private credit bureaus. At regional level, Jordan contributed to the implementation of the 2013-2014 work programme on Euro-Mediterranean
industrial cooperation and exchanged good practices in the area of SME
development and in the textiles and clothing sector.

The Jordan Enterprise Development
Corporation further cemented its role as the main player in the area of SME development.
It continued to receive substantial financial support from the EU.

No substantial developments can be reported in
the area of statistics. Implementation of a twinning project began, which
aims to enhance the capabilities of the Jordanian Department of Statistics, in
terms of compilation, analysis and reporting of statistical data, by introducing
good practices closely aligned to European standards. The population census,
scheduled to take place in 2014, was postponed to 2015 due to budget
restrictions and the Syrian refugee crisis.

There have been
no significant legislative developments in the area of public internal
financial control. In
order to ensure that the wider modernisation of internal controls and audit
currently underway also brings national legislation into line with international best practices, as
laid down by the International Organisation of Supreme Audit
Institutions (INTOSAI), the capacity building
plan, adopted for internal control units of ministries, continued to be
implemented. On external audit, a twinning project designed to introduce
a standardised financial audit methodology has been launched. The project
includes measures such as adopting financial manuals, supporting an overarching
anti-fraud and anti-corruption strategy and strengthening environmental audit.

There were no substantial regulatory
changes in the areas of competition policy, state aid, public procurement
and consumer protection.

5.
COOPERATION ON JUSTICE, FREEDOM AND SECURITY

Two
technical expert missions took place in February and July 2013 as part of the EU-Jordan
Dialogue on Migration, Mobility and Security. They covered
issues relating to legal migration and mobility, international protection,
border management, travel and identity document security and the fight against
organised crime and terrorism. The discussions proved to be fruitful and, as a
result, negotiations on a joint declaration establishing a Mobility Partnership
between the EU and Jordan were launched in December. In March,
the Commission adopted a list of supporting documents to be supplied by
Jordanian nationals applying for Schengen-visas.
In October, Jordan signed an agreement under which it formally recognised the
Interpol travel document which will facilitate the movement of Interpol staff
across different countries.

In
relation to the addressing trafficking in human beings, the EU
continued to support measures taken by Jordan to improve the conditions of
irregular migrant workers, promote the rights of workers in the domestic and
agricultural sectors and strengthen the role of civil society and reviewing
existing legislation. Jordan made progress in improving the protection
of migrant workers, but more work is required in this field, including through
the development of a new action plan on trafficking in human beings and regular
meetings of the National Committee for the Prevention of Trafficking in Human
Beings.

Jordan
amended the law on narcotics and psychotropic drugs in May
2013. First
time users will now be sent to an Anti-Narcotics Department rehabilitation centre
instead of to prison. In order to improve the operational capacity of the
Jordanian Gendarmerie, in accordance with international standards and EU best
practices, another twinning project was agreed in August.

In terms of strengthening Jordan-EU Member
States cooperation in police and
judicial matters, a treaty between Jordan and the UK on mutual legal assistance in criminal matters entered into force in June. The
treaty allowed Jordan to bring back Abu Qatada to stand trial on charges of
terrorism.

6. TRANSPORT,
ENERGY, CLIMATE CHANGE, ENVIRONMENT, THE INFORMATION SOCIETY, RESEARCH AND
DEVELOPMENT

A new 20-year
strategy on national transport expected to be finalised in 2014 has not been adopted yet. The first joint committee on
the EU-Jordan Euro-Mediterranean Aviation Agreement, signed in December 2010,
took place in January. Air carriers had not reaped yet the
expected benefits from the Aviation Agreement due to the economic and political
crisis. However, Jordan made significant efforts to meet its obligations
regarding the implementation of EU aviation legislation. Implementation
of the twinning project on aviation started in August 2013 with the aim of
strengthening the capacity of the Civil Aviation Regulatory Commission, in
approximating the legislative and regulatory framework to EU standards.
Jordan has worked more closely with the European Aviation Safety Agency and the
agency’s experts visited Jordan in July to advise on airport safety issues. A
master plan for the highway network, identifying both short- and long-term
investment programmes, was finalised. Implementation of the twinning project on
road safety with the Jordan Traffic Institute started in September. At the
regional level, Jordan provided active leadership in its role of the Southern
UfM Presidency in the Euro-mediterranean transport cooperation.

There
were no significant developments concerning the implementation of a long-term energy
strategy. Government purchases of energy imports continued to have
major budgetary implications. Interruptions
to deliveries of gas from Egypt continued throughout the year. In
August, the government raised electricity tariffs for a number of
sectors as part of the stand-by arrangement with the IMF. On 1 January 2014,
electricity tariffs were raised for private households consuming more than 600
kWh per month, as well as for agriculture and industrial sectors consuming more
than 10 000 kWh per month. Efforts to diversify energy supplies
continued, with Jordan reaching an agreement with Iraq in September on a list
of qualified companies for the Basra-Aqaba pipeline. The authorities carried
out a tender for the construction of a liquefied natural gas terminal in Aqaba. In
addition, Jordan signed a memorandum of understanding with a Chinese consortium
in September for the possible future extraction of shale gas.

The
Atomic Energy Commission (AEC) designated an area near Amra desert castle as
the future site of the country’s first nuclear power plant. Civil society
continued to oppose the plans. The Nuclear Safety Unit continued to
support Jordan’s nuclear regulator by helping it to develop expertise and bringing
the national legal and regulatory frameworks in line with EU and International
Atomic Energy Agency standards. In October, the AEC announced that a Russian
company had been selected to construct two 1 000-megawatt reactors for the
nuclear power plant by 2023. Although authorities maintained that launching
construction was still subject to two years of environmental impact assessment,
the announcement sparked further protests involving local residents,
environmentalists and civil society.

In
November, financial contracts for the first large-scale on-shore wind farm
in Jordan were signed. With financial support from the European Investment
Bank, the Tafila wind farm is projected to provide 10 % of Jordan’s renewable energy target by 2020. A government decision in September set a target
of 20 % of electricity consumed in
public buildings being generated from renewable energy by 2020. The
government adopted a national energy efficiency action plan, which was
supported by the EU regional project Energy
Efficiency in the Construction Sector in the Mediterranean (MED-ENEC).

In
May, Jordan adopted a policy on climate change. Its
objectives include making communities and institutions better able to adapt to
change, increasing the resilience of natural ecosystems and water, and optimising
mitigation opportunities. The Ministry of Environment designated a national focal
point for the regional EU programme CLIMA South
and actively participated in its activities, including welcoming a fact-finding
mission in the country.

In July, as part of the national strategy
to diversify water supplies, Jordan completed the first phase of
the Disi water conveyance project which
pumps water from southern Lebanon to Amman and other major population centres
in the north of the country. The government further decided to begin the first
phase of the Red Sea-Dead Sea project. The Ministry for Water and Irrigation
started to implement energy-efficient pumping schemes and to take action
against illegal wells.

Jordan
participated in EU-funded regional projects including the Sustainable Water
Integrated Management project and those falling under the Horizon 2020
Initiative for the de-pollution of the Mediterranean. Jordan is one of the
five ENP countries to have started an enhanced cooperation with the European
Environment Agency (EEA).

In the area of information society, the draft telecom law
remained under revision. The current draft law is not expected to bring
national law in line with EU practice on liberalisation
and competition between operators. Few further steps were taken to strengthen
the independence and administrative capacity of the Telecommunications
Regulatory Commission (TRC). Regulation is lacking in areas such as e-payment, video
on demand and mobile phone applications. The work has advanced on the e-signature
regulation. The twinning project designed to strengthen the TRC resulted in a
Green Paper on the convergence of telecommunication and new media and
intensified cooperation between the TRC and European telecommunication regulators
and agencies. TRC will chair the EU-South Med group of regulators for
electronic communications in 2014 and hosted the regional seminar on the
promotion of e-signatures for e-business development in November 2013.

No developments took place in audiovisual
policy.

In the area of research and innovation, Jordan significantly increased its participation in the Seventh Framework Programme (FP7)
in 2013, reaching a total of 55 projects. The EU contribution to Jordan’s participation in these projects totalled EUR 6.3 million. Jordan continued to participate actively in the ERA-WIDE projects, which aim to
integrate neighbours into the European Research Area. The main areas of
cooperation included environment and energy, health and ICT. Two new
FP7 projects (R2I-Research to Innovation) involving four Jordanian stakeholders
were launched with total EU funding of around EUR 2 million. These projects are
intended to foster research-industry partnerships, support Jordan’s capacities in innovation and facilitate the commercial exploitation of research
results. A new FP7 regional project, ERANETMED, involving the Higher Council
for Science and Technology (HCST) was launched in November. This aims to
increase coordination between the national research programmes of EU Member
States, associated countries and Southern Mediterranean countries. In May 2013,
the HCST launched a national strategy for science, technology and innovation
for the period 2013-2017.

Jordan continued its participation in the technical
assistance EU-funded project on the Integrated Maritime Policy in the Mediterranean (IMP-MED).

In the area of civil
protection, Jordan takes part to the second phase of the flagship Programme
for Prevention of, Preparedness for, and Response to natural and man-made
disasters (PPRD South II) which was launched in September. The Programme aims
at strengthening a sustainable system of prevention, mitigation and management
of natural and man-made disasters in the region.

7. PEOPLE-TO-PEOPLE
CONTACTS, EDUCATION AND HEALTH

Continued progress was made in education reform,
including in the management, monitoring and evaluation of schools under the
School Development Improvement Programme. The planned review of the assessment system,
including of the general secondary examination,Tawjihi, has not yet however
been carried out and no further progress was made on the question of the
selection of teachers in accordance with merit-based criteria and standards. An
additional EUR 30 million of direct EU support for education was announced in
the light of the Syrian crisis and its impact in Jordan. These funds are
intended to address the decline in educational achievement and support the
enrolment of Syrian refugee children in the formal education system. Currently
106 000 refugee children are registered in the education system and a
further 60 000 are receiving alternative education. The EU also provided support of more than EUR 25 million through UNICEF to help fund education for Syrians. Construction of new schools continued despite
budgetary constraints.

The technical and vocational education
and training (TVET) sector continued to be a main recipient of support from
the EU and other donors to make it a recognised and attractive pathway for young
people. In this context, the Jordanian Employment and Technical and Vocational
Education and Training Council started planning a new TVET strategy for the next
five years. Development of a National Qualifications Framework has also
commenced. Mapping of TVET governance in Jordan was launched as part of the new
project "Governance for Employability in the Mediterranean".

Jordan
continued to play an active role in the Tempus programme. New
projects involving Jordan increased from five in 2012 to eleven in 2013, thanks
in part to the budget increase for the Southern Mediterranean region and the
growing experience of Jordanian higher education institutions in working with
the programme. Three projects were coordinated by Jordanian institutions. A
total of 148 students and staff from Jordan were selected to receive scholarships
enabling them to study at a European higher education institution under new Erasmus Mundus partnerships.
In addition, four Master’s students were awarded scholarships to take part in
Erasmus Mundus joint programmes of excellence. Since 2007, eight Jordanian researchers have been
funded by Marie Curie Actions and eight Jordanian organisations
benefited from this programme. The new Horizon 2020 programme will also offer
further opportunities for the Jordanian research community to benefit from
Marie Curie Actions.

Young
people and youth organisations in Jordan continued to participate in the Youth
in Action programme, with 91 projects reaching 242 beneficiaries.

Cultural
cooperation between Jordan and the EU continued,
including through a number of specific projects carried out as part of the
Euro-Med Heritage Programme. This programme supports the mobility of artists
and social entrepreneurs, promotes Jordan’s creative industries, cultural expression
and public debates advocating human rights. The ‘May of Culture’ was dedicated
to celebrations of 9 May (Europe Day).

Jordan participated in the EU-funded ‘Episouth
Plus’ project, which aims to improve health security in the
Mediterranean region and South-East Europe. Policy-makers from Jordan attended a TAIEX multi-country workshop on the EU acquis on prevention and
control of communicable diseases, and participated in the EU-supported
Mediterranean Programme for Intervention Epidemiology Training project, which
supports training infrastructure and a regional network of competent field
epidemiologists, in order to contain cross-border health threats.

Jordan’s
health system faced additional demands for medical services from refugees having
fled the crisis in Syria. The EU provided
humanitarian assistance to help meet the refugees’ health needs, and also
provided EUR 10 million to help finance improvements to wastewater services and
sanitation in communities hosting Syrian refugees. In August, the Higher
Population Council launched a national
strategy on reproductive health, which focuses on improving family planning and
the quality of health services.

[1] Figures are from the national statistical office, the central bank or the
IMF, or are estimated by Commission staff, as indicated in the Statistical
Annex. When other data sources are used, these are indicated.

[2] Data for 2013 was not available at the time of writing.

[3]
Comparison is made with the ‘Doing Business 2013’ ranking, which was adjusted
for changes in methodology and any revision of data due to corrections. For
more information, see http://www.doingbusiness.org.

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