Brussels, 11/06/2010 (Agence Europe) - Algeria and the EU are to meet in Luxembourg on 15 June for the 5th session of their Association Council. Discussion will be detailed, on political and economic issues, and will above all make it possible to verify whether Algeria's resolve to cooperation remains intact. During the past few months, Algeria has constantly asserted that the association agreement, which took effect in September 2005, deserves to be adapted. A number of decision-makers, including the trade minster, who are backed by traditionally critical media, have even supported the idea of renegotiating the agreement.
The Algerians themselves acknowledge that political and economic circles do not take the same tone. The fight between those known as “archeos” and those in favour of opening is not yet over. Karim Djoudi, Finance Minister, who has been cited many times in the local press, maintains that opening up the Algerian market has not brought the expected European investment. He highlights a loss of earnings by way of $2.2 billion in 2009 when, he points out, the flow of European investment towards Algeria hardly reaches $500 million. This duality can be found in the attitude to refuse to become involved in neighbourhood policy and is one reason for the fact that Algeria is distancing itself from the Union for the Mediterranean (UfM).
The EU trusts that the session will make it possible to clarify Algeria's intentions. Europe's intention is to appeal for there to be no alternative to the association agreement. The Commission expects to fix dates for the rendezvous clauses, envisaged towards the end of the year, in order to improve implementation of the agreement, open agricultural talks and prepare talks on services. A roadmap had been signed in 2008. The EU trusts Algeria will keep to schedule and to the objectives set, namely to pursue economic reform and strengthen trade policies. At this level, Brussels reaffirms its support for Algeria's accession to the WTO but invites it to show greater flexibility in the protection of its market, energy cooperation, the movement of persons advocated by Algeria, and, finally, the fight against terrorism. In order to calm Algerian dissatisfaction, the Commission considers that Algeria has mainly a problem when it comes to carrying out the objectives of the agreement, although it has a real potential for attracting European investment flows. The condition necessary for the country to gain the most from the agreement and attract foreign investment would, it is said in Brussels, be to ensure a “stable, predictable, non-discriminatory and transparent framework”. The country may thus diversify an economy based too much on fossil fuels, and Brussels plans to help it succeed in its process of modernisation, trade liberalisation and economic diversification. Concessions are being studied on conditions for access to the European market for new products, in the certainty that Algeria will not be able to meet its quotas.
The Commission does not wish gloom to be cast on the situation. “Positive effects” are therefore cited, with emphasis placed especially on the “quality” of political dialogue mainly geared to civic rights, the Sahara dossier and fighting terrorism. The statement of all these achievements, however, seems a little forced given the long list of demands made upon Algeria. In addition to reforms that the Commission would like to see speeded up to integrate this country more into its exchanges with the southern Mediterranean rim, the question of energy cooperation is still outstanding (the question of “double price” for gas which could create competition distortion), and the question of measures deemed restrictive against European enterprises on the Algerian market. Also, there is divergence when it comes to migration issues (like all the countries of the region, Algeria is resolved not to sign a “readmission accord”, insisting more on the freedom of movement for Algerian nationals in Europe).
Furthermore, the EU plans, as is its wont whenever there is an opportunity to do so, to express concern bout human rights, a subject that it makes “one of the essential elements of partnership”. While acknowledging that progress has been made, it “encourages” Algeria to protect the exercise of fundamental rights and also underlines the problem of “forced disappearances”, a subject on which it believes Algeria could give some explanation. The tone, however, remains one of caution and without any naming and blaming that could compromise relations, already touchy, with a country whose political situation remains fragile and highly susceptible. Added to this is the fact that it is in the EU's interest to cooperate with a country whose financial situation is now one of the most flourishing of the region after fiscal consolidation, a reduction in its indebtedness and growth in its reserves. This, the Commission points out, should be an incentive for it to undertake without delay transition towards the market economy and improved socio-economic conditions to the people's benefit. The EU, for its part, announces that it will be making €172 million available for Algeria (2011-2013) to encourage reform and promote diversification of the economy, foster employment and sustainable development, promote the cultural heritage and strengthen the Algerian cultural life. (F.B./transl.jl)