Algeria, European Union: Towards Reinforced Strategic Partnership in 2025

BY: Dr. Hana Saada

EU Ambassador Stresses the Urgency of Strengthening Bilateral Relations Amid Global Transformations

Algiers, Algeria | February 17th, 2025 —  Algeria and the European Union are poised to elevate their strategic partnership to new heights in 2025, as both parties recognize the necessity of adapting to a rapidly evolving global landscape. Diego Mellado Pascua, the European Union’s ambassador to Algeria, underscored the profound significance of these relations, emphasizing that the upcoming year marks a pivotal moment to reinforce cooperation in key economic and commercial sectors.

“Europe and Algeria share a strong, intense, and responsible relationship rooted in a robust association agreement. As we approach the 20th anniversary of this partnership in 2025, it is crucial to revisit and further solidify our ties in the spirit of mutual benefit,” declared Mellado Pascua during the opening session of a high-profile meeting in Algiers on Monday, centered on “Special Economic Zones as a Tool for Attracting Investment in Algeria.”

A Vision for a Win-Win Partnership

Highlighting the European Union’s commitment to deepening collaboration, Mellado Pascua pointed out that both parties must acknowledge the evolving geopolitical and economic landscape. “We have built a strategic relationship over the past two decades, particularly in economic and commercial domains. The strong foundation we have laid must now be reinforced to meet the challenges of the new global order,” he asserted.

He further elaborated on the EU’s determination to broaden the scope of cooperation with Algeria, noting, “From the European perspective, we see vast potential in exploring the multifaceted dimensions of our partnership. Given the rapid pace of global change, we must continue strengthening our ties, which we view as fundamental, essential, and irreplaceable.”

Mellado Pascua also reaffirmed the EU’s alignment with Algerian authorities and President Abdelmadjid Tebboune’s stance on redefining bilateral relations. “The world is evolving at an unprecedented speed. Our partnership with Algeria is instrumental in recalibrating our position in this shifting environment. We fully support Algeria’s vision of reassessing and upgrading our cooperation,” he added.

Catalyzing Economic Growth Through Strategic Collaboration

Underscoring the necessity of fostering seamless economic interactions, Mellado Pascua stressed the importance of facilitating value chain integration and industrial co-development. “We must explore ways to establish shared value chains and develop industrial processes that yield mutual benefits while reassessing our supply chains to enhance resilience and competitiveness,” he stated.

The EU ambassador emphasized that the year 2025 represents a crucial opportunity for both parties to leverage their partnership as a catalyst for industrial expansion and economic modernization. “We are determined to identify avenues that allow Algeria and the EU to utilize their relationship as a driving force for industrial development. 2025 will be a landmark year, and I firmly believe we have the capacity to deepen our cooperation,” he affirmed.

He further noted that Algeria stands to gain significantly from the European market, particularly through the transfer of knowledge and best practices. “The EU is not just a vast market but also an economic and financial powerhouse on Algeria’s doorstep. We can offer valuable experiences, such as Poland’s successful model in establishing special economic zones,” Mellado Pascua highlighted.

Towards the Establishment of Specialized Economic Zones

The event also featured an in-depth discussion on Algeria’s strategic approach to attracting foreign direct investment (FDI) through the creation of specialized economic zones. Said Meziane, Director of Cooperation with the European Union and European Institutions at Algeria’s Ministry of Foreign Affairs, emphasized that investment remains a cornerstone of Algeria-EU relations.

“This partnership initiative aligns with Algeria’s sustainable economic development objectives, focusing on bolstering investments in priority sectors capable of generating employment and creating substantial value addition,” Meziane stated. He pointed out that multiple forums have been organized to explore investment opportunities, alongside exploratory visits aimed at enhancing Algeria’s attractiveness to European investors.

Addressing the potential establishment of free trade zones, Meziane disclosed that Algeria has introduced a specific legal framework designed to formulate an investment-friendly model.

In this context, Samir Serradji, Director of Foreign Trade at the Ministry of Trade and Export Promotion, stressed the significance of these discussions in assessing the feasibility of specialized economic zones. “We are actively exploring the creation of designated economic zones to attract foreign direct investment and promote exports. These zones could take the form of green industrial hubs or specialized clusters in high-value sectors such as technology and pharmaceuticals,” Serradji explained.

However, he noted that the current legal framework does not explicitly address the establishment of such economic zones, suggesting that regulatory adjustments may be required to facilitate their implementation.

A Transformative Year for Algeria-EU Relations

As Algeria and the EU prepare to mark two decades of partnership in 2025, both sides recognize the necessity of recalibrating their collaboration to align with contemporary economic imperatives. The discussions held in Algiers underscore a shared vision of fostering a resilient, forward-looking partnership that leverages Algeria’s economic potential while capitalizing on the EU’s vast market and technological expertise.

With a renewed commitment to deepening trade and investment relations, Algeria and the EU are set to embark on a new era of cooperation—one that prioritizes industrial modernization, sustainable growth, and strategic integration into the global economy.

 

 

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