The macro-financial assistance (MFA) for Egypt was adopted by Parliament by 452 votes in favour, 182 against and 40 abstentions. The MFA for Jordan was passed by 571 votes in favour, 59 against and 46 abstentions.
Given Egypt’s critical economic and financial situation and its role as an important stabilising presence amid geopolitical tensions in an increasingly volatile region, the Commission proposed to support the country on 15 March 2024 with macro-financial assistance in the form of loans worth up to €5 billion. These break down into a short-term loan of up to €1 billion – already disbursed at the end of 2024 – and another, regular, loan of up to €4 billion to be disbursed in three instalments. Parliament approved the proposal.
For Jordan this is the fourth MFA effort by the EU since 2013. It should help cover the country’s residual financing needs, support its structural reforms, and shore up its fiscal consolidation efforts. In January 2025, the Commission announced an additional financial package to help Jordan deal with existing financial and other challenges.
A pre-condition for the EU granting financial assistance shall be that Jordan respects effective democratic mechanisms – including a multi-party parliamentary system – and the rule of law, and guarantees for respect of human rights.
Quote
Rapporteur Celine Imart (EPP, France), said:
« This vote underlines Parliament’s support for our partners. The money for Jordan can be delivered quickly, and Parliament will enter into negotiations with member states on the proposal for Egypt with a strong mandate to make a swift agreement. Helping our partners means promoting European interests in an unstable region.”
Next steps
The MFA package for Jordan now needs to be formally approved by the Council before it can take effect. On financial aid for Egypt, negotiations between Council and Parliament are expected to start soon.
Background
These loans are part of financial support packages concluded with EU partner countries struggling with financial, economic, societal challenges, to help with structural political and economic reforms.
Discussion about this post