French observers are monitoring the strengthening partnership between Algeria and Germany, which has developed remarkably in recent years. Indeed, French people are closely monitoring the Algerian-German partnership. Media outlets in France have noted a significant rapprochement between Algiers and Berlin. French expectations anticipate further strengthening of relations between Algeria and Berlin during President Abdelmadjid Tebboune's official visit to Germany in mid-July. However, the Algerian side has not yet officially announced the visit.
Deepening Bilateral Agreements
Several Memoranda of Understanding (MoUs) have been signed in various sectors, including industry and digital technology, indicating an increased number of agreements between Algeria and Germany in recent years. This diversification builds upon the outcomes of the first German-Algerian Investment Summit held last year. The two countries signed two agreements in Algeria in recent days. One agreement, funded by the German Federal Ministry for Economic Cooperation and Development, aims to digitize and modernize the Algerian electricity grid. The second agreement, signed between Algeria's Sonatrach and Germany's VNG AG, focuses on developing green hydrogen projects to reduce methane emissions in Algeria. There is a clear political will from both Algeria and Germany to expand the horizons of their bilateral partnership.
Automotive Sector Competition Heats Up
Six German industrial companies, specialized in the automotive sector and subcontracting, are scheduled to visit Algeria at the end of June. These companies were commissioned by the German Federal Ministry for Economic Affairs and Climate Action. The Algerian-German Chamber of Industry and Commerce confirmed last week that the German automotive industry will enter the Algerian market soon, following a delegation visit between June 28 and July 3.
This development occurs as Italy has established a strong economic relationship with Algeria, largely dominated by the energy and automotive markets. Currently, the Italian brand Fiat is the sole global automotive producer in Algeria, manufacturing and marketing vehicles locally. Fiat is the only one among its global counterparts producing in Algeria and marketing locally. In contrast, the Renault factory in Oued Tlélat, near Oran, has been shut down for approximately six years due to a breach of contractual obligations.
Energy Projects and Future Vision
The partnership between Algeria and Germany encompasses sensitive sectors, including both fossil and clean energy, as well as the automotive industry. Agreements between the two nations aim to diversify Algerian energy production and facilitate the export of a portion of this energy to Europe. A main joint project between the countries is the 'South 2' pipeline. This 3300 km gas pipeline is intended to transport green hydrogen from North Africa to Europe in the future. Germany has emerged as the most prominent partner in this promising future project. This strategic collaboration notes the growing importance of renewable energy and sustainable development in the bilateral relationship.
French Concerns Over Lost Influence
Berlin is considered a strong competitor to Paris in Algeria. French observers feel they are losing a friendly country and a promising market due to recent political and diplomatic disputes. The French feel they are losing a friendly country and a promising market due to political and diplomatic disputes that have overshadowed bilateral relations in recent years. France is seen as the biggest loser among its European partners in Algerian partnerships, unlike other European neighbors who maintained balanced political relations. Unlike the French, who engaged in geopolitical calculations that cost them significant interests in Algeria, other European neighbors like the Italians and Spaniards maintained more balanced political relations with their Maghreb neighbors.