Brussels, 09/05/2014 (Agence Europe) - The European Union and Algeria will be meeting for an Association Council in Brussels on 13 May, just under a month after the Algerian presidential election on 17 April which returned President Abdelaziz Bouteflika to office. The election results have not been commented upon by the EU. Algeria's prime minister, Abdelmalek Sellal, who has been applying an often unpopular policy of economic openness, has been confirmed in his job.
Despite its disagreements over the country's political situation, the EU shares with Algeria the concern to ensure stability and the pursuit of political and economic reforms. The fact that Algeria supplies oil and gas and is a hallmark regional player when it comes to security encourages a cautious approach and the EU aims to give Sellal's government political leeway to reform the country and modernise the economy.
The huge challenge facing the country is how to emerge from the economy of landed interests and the stifling bureaucracy to which this has given rise. The World Bank says the country's foreign currency reserves, built up from 1999 to 2013 stand at US$ 800 billion (US$ 194 billion for 2013 alone). Some 97% of Algeria's exports are of oil and gas, but this only employs 3% of the working population. The key problem is finding jobs for young people, and this is the direction that shapes cooperation with the EU.
The meeting will provide an opportunity for examining the various aspects of cooperation already under way under the association agreement, along with others still under negotiation, such as trade, the double energy price and restrictions on foreign companies wishing to do business in Algeria. In return, Algiers is hoping for clearer EU support for its bid to join the World Trade Organisation. The talks will be virtually routine and are expected to restore the agenda that had been disturbed by the electoral uncertainty. Algerian sources say the main objective is “to densify EU-Algeria relations”. The negotiations will also examine international policy issues, such as the situation in the Western Sahara and the Sahel and Sahara region, along with a joint discussion of the situation in the Middle East and Syria. Algeria will be paying particular attention to developments in its two neighbours to the east and south. It is contributing to a restoration of stability in Tunisia by providing military support along the borders and recently announced US$ 500 million in aid for Tunis. (FB)