The strategic partnership between the European union and Jordan: Boosting stability and economic growth

Feb 01,2025 - Last updated at Feb 01,2025

The strategic partnership between the European Union and Jordan is an important step in their cooperation. The EU aims to support Jordan’s political and economic stability with a financial package of 3 billion euros from 2025 to 2027. This package includes 640 million euros in grants, 1.4 billion euros in investments, and 1 billion euros in low-interest loans. This shows Europe’s strong commitment to helping Jordan face regional and economic challenges.

This partnership supports King Abdullah II’s vision for reforms in politics, the economy and administration. It also aims to make the Jordanian economy more resilient by attracting investments and growing key sectors like digital technology, green energy, sustainable tourism, and pharmaceuticals. This will help create sustainable development, improve internal stability, and open the door for more economic and trade cooperation between Jordan and European countries.

The cooperation focuses on five main areas. The first is strengthening political relations and regional cooperation to support peace and stability in the Middle East and the Mediterranean, promote good governance, democracy, and human rights, and work together through regular summits and coordination within the Union for the Mediterranean.

The second area is security and defense. Both sides are working together to fight common security threats such as terrorism, extremism, organised crime, and drug trafficking. They are also supporting Jordan’s armed forces and improving cybersecurity to protect against digital attacks.

Economically, the partnership aims to make the Jordanian economy stronger by supporting reforms that promote growth and create jobs. It focuses on fully using the potential of the EU-Jordan Free Trade Area and encouraging sustainable investments in areas like water, energy, and green technology. Cooperation also includes digitalisation, entrepreneurship and innovation.

Developing human capital is another key focus. The partnership works to improve education and skills training, make the labor market more inclusive, and support programs that create more job opportunities and encourage entrepreneurship.

Another key area is migration and refugees. Europe and Jordan are working together to manage the refugee issue by focusing on protection and supporting host communities. They are also improving border management and fighting human trafficking and smuggling. Efforts are also being made to find long-term solutions for refugees, including voluntary, safe, and dignified returns.

This cooperation provides Jordan with a chance to strengthen its economy and expand trade with Europe. It will help Jordan benefit from European financial support to improve infrastructure and fund development projects. The EU is committed to supporting Jordan in addressing its challenges, improving regional stability, and opening up new opportunities for future cooperation.

Additionally, this partnership will help Jordanian companies access European markets, increase exports, and improve the competitiveness of local products. It will also allow for the exchange of knowledge and technology between European and Jordanian companies, which will help develop the industrial and tech sectors in Jordan and support sustainable economic growth.

The partnership is expected to lead to an annual economic growth of 3% to 3.5 per cent in the coming years, with the new European investments creating thousands of jobs. This will help make the Jordanian economy more sustainable and improve the standard of living for citizens.

This renewed cooperation shows how important Jordan is as a partner for the European Union. Jordan plays a key role in achieving stability in the region, supporting efforts to de-escalate tensions in Gaza and providing humanitarian aid. This strengthens Jordan’s position as an important player in the Middle East.

Author is a head of the Economics Department – University of Jordan

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