General background: support for economic transition and diversification and for economic trade constitutes a key component of the cooperation with Algeria. Under the Association Agreement (AA), in force since 2005, this economic cooperation takes place for example through several mechanisms involving both parties (talks on the economy; several theme- and sector-based sub-committees). The EU also finances a range of programmes aimed at supporting Algeria’s efforts in different areas of the economy. The first evaluation of how the AA is operating was conducted in 2009; a second evaluation is currently underway.
In 2014, an agreement established the general principles for Algeria’s involvement in EU programmes (the agreement can be found at: http://www.joradp.dz/FTP/jo-francais/2016/F2016015.pdf).
In terms of economic diversification, the current programmes aim to support the implementation of the 2005 Association Agreement and the development of the fisheries sector. The objective is to:
- bolster the Algerian economy’s performance;
- encourage its diversification in a bid to reduce its heavy dependence on the hydrocarbon sector.
Since 2014, under the Single Support Framework 2014-2017, new programmes have been under preparation, including:
- support for local social and economic development in Algeria’s North-West;
- pilot actions for rural development and agriculture in Algeria, targeting growth in the local and rural economy.
More information on projects can be found at:
These programmes are in addition to those already underway in the areas of:
- market monitoring and framework;
- improving the business environment and industry diversification;
- strengthening the capacities of those involved in local development.
In parallel, twinning programmes between public administrations together with specific targeted actions serve to boost cooperation. In addition to this extensive cooperation between the parties, there are also activities under regional projects.
More information available on the ENPI Info Centre website.
The energy sector is an important component of the economic relations between the EU and Algeria. Algeria is in fact the third largest supplier of natural gas to the EU. The EU and Algeria have therefore signed a ‘Memorandum of Understanding’ for the establishment of a partnership. The main priority of this partnership is to facilitate and promote European investments in the natural gas, renewable energy and energy efficiency sectors.
Since the end of 2015, two groups of EU-Algeria experts on gas, renewable energies and energy efficiency have been working in these areas. Several meetings are expected to take place to discuss and decide on new cooperation efforts to be undertaken here.