EuropeAID-Jordan Partnership

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. Funding levels EU funding is channeled through the ENPI. The total bilateral ENPI budget allocation for Jordan is €223 million for 2011-2013, which represents an increase of 12.2 percent over the previous 2007-2010 period. This increase is in line with the EU’s “more for more” principle, which dictates enhanced support to countries that are taking the right development steps. Jordan has shown commitment to the EU-Jordan Action Plan, which outlines priorities and key reforms. The Jordanian government has also expressed its desire to build relations with the European Union and develop its capacity to absorb ENPI funds. According to the Co-Chairs Conclusions of the EU-Jordan Task Force, the EU will “make available in 2012 an additional amount of €70 million,” through the new program Support for Partnership, Reform and Inclusive Growth, or SPRING, bringing total bilateral EU funds for the country to nearly €300 million for 2011-2013. A significant portion of EU aid is delivered in the form of budget support, which includes policy dialogue and financial transfers to national authorities. For the 2011-2013 programming period, the European Union claims that 50 percent of total allocation will be delivered through budget support. Priorities The European Union contends that Jordan’s greatest challenges are achieving “economic growth and social policies that reduce poverty, distribute wealth, create jobs and lead to enhanced participation of women and young people in economic life.” Due to Jordan’s limited water and energy resources, the European Union is giving special attention to sustainable development. The European Union has identified three sub-priorities: (1) Human resources development and employment (€23 million), (2) Development of renewable or alternative energy sources (€35 million), and (3) Local development (€35 million). Despite the Arab Spring and the protracted conflict in neighboring Syria, Jordan has remained relatively stable. King Abdullah II of Jordan has promised to implement multiple reforms to address the demands for popular elections and for stronger government response to tackle corruption and unemployment. The European Union supports Jordan in its path to democracy, including the protection of human rights, free media, and justice. The two sub-priorities in this area are: (1) Democratization, Civil Society and Media (€10 million) and (2) Justice, Home Affairs and Security (€35 million). The support for the reform agenda is also supplemented with programs for enhancing institutional capacity in Jordan. The European Union has allocated €45 million for the implementation of the EU-Jordan Action Plan Program, or SAPP. Another aspect of EU assistance is focused on enhancing Jordan’s competitiveness. The European Union has allocated €40 million for the “Trade, enterprise and investment development” priority. The private sector and transport projects are supplemented with credit lines that are made available by the European Investment Bank. Devex analysis The Arab Spring has brought dramatic changes across the region. While Jordan has followed a distinct path of gradual political reform, progress in some areas has been patchy with frequent government changes and uncertainties over the first popular elections towards the end of 2012. The most remarkable event has been the adoption of constitutional amendments in September 2011 that paved the way for the creation of an independent electoral commission and the Constitutional Court. EU support will continue to be conditional on democratic progress, respect for human rights, and rule of law — a policy reinforced by the “more for more” approach. To date, it appears Jordan’s leadership has demonstrated a commitment for reform, opening up the possibility for the country to receive even greater financial support from the European Union for the next budget allocation over the 2014-2020 timeframe. Contact Delegation of the European Union to the Hashemite Kingdom of Jordan Princess Basma St., North Abdoun, P.O. Box 852099, Amman 11185, Jordan Tel.: (962-6) 460-7000 Fax: (962-6) 460-7001 Email: Delegation-jordan@eeas.europa.eu