The European Union and Algeria signed on March 13 a €40 million package that will help the North African country diversify its economy and improve its business climate through measures ranging from the development of renewable energy to modernisation of public finances.

The measures signed during the high level EU-Algeria Association Council in Brussels on March 13 will support Algeria’s own economic reform programme, the Commission said in a press release.

The package was signed on the day that Algeria becomes the first country in North Africa to adopt Partnership Priorities with the European Union to focus future cooperation on jointly identified areas of mutual interest.

“Algeria is a key partner of the EU in our neighbourhood. Today’s EU package for Algeria will help Algeria diversify its economy contributing to the creation of new jobs and the modernisation of public finances,” European Neighbourhood Policy and Enlargement Negotiations Commissioner Johannes Hahn said. “Our aim is to help Algeria meet it current economic challenges, and create stronger links with European businesses.”

Hahn, High Representative of the Union for Foreign Affairs and Security Policy Federica Mogherini and Algeria’s Foreign Minister Ramtane Lamamra signed the package, which will support in particular two of the priority areas agreed in the new Partnership Priorities – economic development and energy.

The measures support the country’s new economic approach focused on the diversification of its economy. It will also address the improvement of the business climate in Algeria.

To this end, the EU will fund the development of renewable energy, promotion of energy efficiency, modernisation of the public financial management, and the implementation of the EU-Algeria Association Agreement.

Regarding energy, the package supports the development of renewable energy and promotion of energy efficiency in Algeria (€10 million). It will help set up an institutional and regulatory framework for the production of renewable energy and for the deployment of energy efficiency projects. In line with Algeria’s efforts to diversify its economy, the programme will also help promote private domestic and foreign investment in renewable energy and energy efficiency projects.

https://www.neweurope.eu/article/eu-support-algerias-renewable-energy/