The EU is the country’s main partner with 46% of transactions, while inflation, unemployment and social protests are mounting
The government of Algeria was forced to correct its injunction against Spain after finding that the impetus extended to a challenge to the European Union that seriously jeopardized the cooperation agreement, which is essential for the Algerians in these times of serious economic and social difficulties. According to European Commission data for 2019, the EU represents the Maghreb country’s main trading partner with 46.7% of total transactions.
The response from Brussels, which is backing one of its member states to the threats Algiers is now denying, is similar to what happened just over a year ago when thousands of young Moroccans crossed the border into Ceuta. According to the new Algerian position vis-à-vis the Community authorities, the suspension of the Friendship and Neighborhood Treaty does not mean that trade relations will be broken or ongoing transactions will be terminated. In addition, it delegates to the affected companies to fulfill the commitments included in the current gas supply contracts.
The interior ministry fears that Algeria could step up its pressure by reducing anti-terrorist cooperation and controlling illegal immigration and the mafia that trade everywhere.
Government sources consulted express their utter dismay at the aggressive response of the government of Algeria, which has taken place several months after President Pedro Sánchez’s decision to change Spain’s position on the solution of the Sahara conflict and Morocco’s proposal for broad autonomy as a good proposition. A reaction that Algiers has not had with other countries that have made similar decisions such as France, Germany or the United Kingdom, in addition to the United States, the United Arab Emirates or fifteen African countries.
The Algerian justification was Sánchez’s intervention in Congress to ratify the change of stance on the Sahara, but community sources believe the response currently being passed is more due to an interest beyond the Saharawi issue and more related to the status of an ally of Russia and its interest in destabilizing a European country and justifying the cut off of gas supplies.
Putin’s policy in the Sahel, with the operations of Russian mercenaries of the Wagner group in countries like Mali, raises huge concerns in Europe as it increases the instability in the region caused by terrorists.
gas as a weapon
In this delicate area, it should not be forgotten that last October the Algerian government decided unilaterally and without taking into account the interests of Spain not to renew the gas supply contract to Spain via the Maghreb-Europe gas pipeline that runs through Morocco. That decision meant the loss of 6,000 million cubic meters, almost half of the Algerian gas imported by Spain, and there was no aggressive response from Spain.
Currently, Spain has reduced the supply of gas from Algeria from 43% to 24%, so the relevance for the supply has been significantly reduced and alternative supplies of liquefied natural gas from the United States, Qatar or Nigeria regasified here.
In any case, the position of the Algerian government clashes with its macroeconomic interests by questioning its relationship with Spain and thus with the EU, as well as with the most urgent needs of the economy that has been suffering for months from high inflation, a high unemployment, slow imports and a high risk of social explosion due to the restrictions most citizens face. A revival of the Hirak, the popular Friday protests, would pose a new challenge.
Even the rise in oil prices cannot help alleviate the deficit it is dragging, according to economic experts, with debt containment to avoid having to go to the International Monetary Fund. In addition, the military led by Said Chengriha, who has power outside President Tebune, fears that one of the IMF’s unwritten terms would include a solution to the Western Sahara conflict.
historical ties
Algerian economic policy depends on accumulated foreign exchange reserves. The reduction in imports causes severe hardships for the population due to the shortage of milk, oil, medicines, cars and spare parts, and for entrepreneurs who do not have the essential materials for their activities.
Experts in international relations, such as the Spanish diplomat Gustavo de Arístegui, believe that each country can choose the allies it sees fit, but it is a pity that after the invasion of Ukraine, the Algerian government prefers to side with Russia remains standing.
De Arístegui recalls that Algeria is a large country of 50 million inhabitants, very important in the fight against terrorism and in the control of illegal immigration, with large gas and oil reserves and with a very remarkable cultural contribution to the Arab world.
During the war against jihadist terrorism, which killed more than 300,000 in Algeria in the 1990s, Spain cooperated with the Algerian government in training members of its security forces, in particular in the deactivation of explosives, which has contributed to the save many lives.
Source: La Verdad
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