The European Union’s development cooperation with Jordan is financed through the European Neighborhood Partnership Instrument. The bloc allocates significant financial resources to support Jordan’s National Agenda called Kuluna al Urdun — a policy document that prescribes the country’s reform agenda. The European Union remains committed to supporting Jordan in its economic, political, social and legal reforms. For 2011-2013, total bilateral budget allocation for Jordan is €223 million ($287 million).
Jordan is classified by the World Bank as an upper middle-income country. Many analysts attribute positive economic trends to the liberal economic reforms implemented by King Abdullah II, which attracted a steady flow of foreign direct investments. Nonetheless, high levels of poverty and unemployment continue to strain Jordan’s economy.
Jordan is well-integrated into the regional economy which exposes the country to security and economic risks. Regional tensions also adversely affect foreign direct investment and tourism. One of Jordan’s major developmental challenges is limited water resources. According to the U.N. Environment Program, Jordan ranks fourth in the world in water scarcity. Another major issue is the lack of internal energy resources, which forces Jordan to import 96 percent of its energy. The Eureopean Union supports Jordan’s economy through programs targeting sustainable economic growth that take into account the importance of human development and environmental protection.