Hilary Andersson in Amman: new King faces economic crisis

The new king is being given the benefit of the doubt by most Jordanians because they adored his father, King Hussein, who died in February.

But King Abdullah has come to power as Jordan is facing up to the necessity of tackling the dire state of its economy. The debt-burdened country has almost 30% unemployment and very low levels of economic growth.

His first real test will come later this month when a summit of the Group of Seven leading industrial nations will decide whether to write off part of Jordan's crippling $6.8bn foreign debt.

On Sunday King Abdullah paid a visit to parliament to urge deputies to reform legislation in order to encourage foreign investment.

He said: "We need to endorse the necessary legislation, reduce the budget deficit, accelerate reform programmes and take major steps towards privatisation so that we can maintain our credibility."

The king has also paid three surprise visits to Amman's main public hospital, notorious for its appalling levels of hygiene and service. The embarrassed hospital director was subsequently dismissed.

Hussein: old King was key ally of the West

Such moves, whether or not they will achieve long-term results, have reassured Jordanians of the monarch's concern and commitment to improving conditions for his people, around a third of whom live below the poverty line.

But the population has been growing out of control, people are outraged by persistent severe water shortages and there is concern that the public mood could turn ugly.

For now, the country is celebrating the accession of the king who, at only 37, is already no stranger to the thorny problems of Middle Eastern politics.

The celebrations are to mark symbolically the king's accession, so that future anniversaries will not fall on the same day as the anniversary of King Hussein's death. King Abdullah officially came to the throne on the day his father died.

The people of Jordan are enjoying the spectacular festivities, but it is clear they want to see a rapid improvement in their fortunes, without which they could turn against the young king.