The EU and Algeria signed today at their Association Council held in Brussels, a €40 million package to support Algeria diversify its economy and improve business climate through measures ranging from the development of renewable energy to modernisation of public finances

The package is signed on the day that Algeria becomes the first country in North Africa to adopt Partnership Priorities with the European Union to focus future cooperation on jointly identified areas of mutual interest.

Johannes Hahn, Commissioner for European Neighbourhood Policy and Enlargement Negotiations, said: “Algeria is a key partner of the EU in our neighbourhood. Today’s EU package for Algeria will help Algeria diversify its economy contributing to the creation of new jobs and the modernisation of public finances. Our aim is to help Algeria meet its current economic challenges, and create stronger links with European businesses.”

The EU package for Algeria will support in particular two of the priority areas agreed in the new Partnership Priorities – economic development and energy. The package comprises three specific programmes:

• ‘Support programme for the development of renewable energy and promotion of energy efficiency in Algeria’ (€10 million) will help set up an institutional and regulatory framework for the production of renewable energy and for the deployment of energy efficiency projects. In line with Algeria’s efforts to diversify its economy, the programme will also help promote private investment (domestic and foreign) in renewable energy and energy efficiency projects.
• ‘Reform of public finances’ (€10 million) programme will help modernise the management of public finances, a central element of Algeria’s proclaimed new growth model. The programme will support the introduction of an integrated financial information system across all departments of the Ministry of Finance. It will help build capacity in multi-annual budgetary programming and improve budgetary management and transparency.
• ‘Support programme for the implementation of the Association Agreement‘ (€20 million) will continue to strength Algeria’s legal and regulatory framework as well as its institutional capacities in key public policies, so that country can seize the opportunities offered by the Association Agreement, a cooperation and free trade agreement with the EU which entered into force in 2005.

Read more

Press release 

EU-Algeria Partnership Priorities

Report on the progress of EU-Algeria relations: towards more political dialogue and cooperation

Full report on the progress of EU-Algeria relations

EEAS – Algeria and the EU

EU Delegation to Algeria – website

EU Neighbours – Algeria