Financial and sectoral cooperation
The good relations between Algeria and the European Union have been further strengthened since the signing in 2002 of an association agreement (AA) within the framework of the Euro-Mediterranean partnership. Since its entry into force in 2005, replacing the 1976 Cooperation Agreement, it has been the overall framework governing financial cooperation between the two parties. This EU contribution to sustainable economic development and the upgrading of the Algerian economy has been reflected, since 2007, in the joint establishment by Algeria and the EU of multiannual action plans, very often for a period of three years.
The National Indicative Program (PIN) 2007-2010, was endowed with an indicative envelope of 220 million euros and had as objectives and the NIP 2011-2013, was endowed with a budget of 172 million euros.
Financial cooperation is currently carried out within the framework of the European Neighborhood Policy (ENP, 2013), which introduced a Single Support Framework (SSF), replacing the NIP and the Common Partnership Priorities (CPp), adopted in 2017 and focused on five main areas in the political, economic, commercial and security fields.
The total indicative envelope granted by the EU to cooperation with Algeria for the period 2014-2020 was between 221 million and 270 million euros.
The Single Support Framework (CUA) 2014-2017 benefited from an indicative allocation of between 121 and 148 million euros (2014-2017) and between 108 million and 132 million euros (2018-2020). The envelopes retained were respectively €111.3 million and €125 million, including 40 for 2020.
At the request of the Algerian authorities, the CUA 2018-2020, an amount of 75 million euros under the 2019 and 2020 annual plans, was redirected, in 2020, towards the response to the coronavirus health crisis. This action resulted in the establishment of a new Ad-hoc program entitled "European solidarity response to the COVID-19 crisis in Algeria", in the amount of 43 million euros, which was used to acquisition of medical equipment in collaboration with the UNDP. In addition, two programmes, respectively of €10 million (2019) and €22 million (2020) have been maintained due to their relevance in the context of mitigating the socio-economic impact of the Covid pandemic. -19, in particular for the support of small entrepreneurs and artisans affected.
With regard to the 2021-2027 program, the two parties have agreed to renew the current priorities by directing them more towards improving the business climate and the diversification of the economy, taking into account those of the new European Commission. , in this case the green and digital economy.
Algeria will also benefit from regional cooperation programs including the actions planned by “Interreg – Next Med 2021-2027”, which will target coastal regions, within the framework of the blue and circular economy.