EU gives €20m in assistance to Jordan
AMMAN HOPES TO GET MULTI-BILLION DOLLAR AID PACKAGE FROM GULF STATES TO HELP WEATHER ECONOMIC CRISIS
The European Union’s foreign policy chief assured Jordan of continued financial support yesterday saying it’s an investment in an ally in the “most heated and difficult area of the world.”
EU foreign policy chief Federica Mogherini announced yesterday 20 million euros (Dh86 million) in aid for Jordan following a wave of anti-austerity protests that led to the prime minister’s resignation. The EU will support Jordan “with all possible means at our disposal including economic and financial means,” Mogherini said during a visit to Amman. “This is a country that has a vital role to play in the region,” she told a news conference. “You will have always the EU at your side fully supporting your reform work.”
Mogherini’s visit came days after the country’s prime minister quit amid widespread protests against a government austerity plan sought by international lenders, including proposed tax increases. The new prime minister says he will scrap the tax plan and devise a new one.
Mogherini told a news conference with Jordanian Foreign Minister Ayman Safadi yesterday that the European Union has given Jordan €1 billion (Dh4.31 billion) over three years. “We are here not as a gesture of charity, if you allow me the expression, but as an investment,” she said, adding that Jordan is located “in probably the most heated and difficult area of the world. We understand the needs,” she said. “We understand the pressure, the urgency, and so we deliver our support.”
Pinning hopes on Gulf states
Jordan is pinning hopes onGulf states led by Saudi Arabia committing to a multi-billion dollar aid package to help it weather an economic crisis that sparked rare street protests over austerity plans, officials said.
A palace statement said King Abdullah left for Jeddah to attend a summit called by Saudi King Salman Bin Abdul Aziz who invited leaders of Kuwait and the UAE to discuss ways of helping the kingdom overcome deepening economic strains
Jordan is located in probably the most heated and difficult area of the world. We understand the needs. We understand the pressure, the urgency, and so we deliver our support.”
Federica Mogherini | EU foreign policy chief
that sparked last week’s peaceful protests.
Officials are hopeful the Jeddah meeting will approve a major package in line with a previous $5 billion fund allocated to Jordan by Gulf states in December 2011 to contain unrest that spread across the region.
The funds that were tied to developments projects had helped spur its aid-dependent economy. An official who requested anonymity told Reuters a deposit to cushion dwindling existing reserves of $11.5 billion would have a significant impact on easing pressures on a deficit-ridden budget where spending goes mainly to covers public salaries.
In the past, foreign aid has sometimes financed almost half the country’s budget deficit.
The financing of highways, hospitals and ageing infrastructure by Saudi Arabia, Kuwait and the UAE had indirectly relieved pressure on the kingdom.