France is closely monitoring the deepening partnership between Algeria and Germany, according to reports. French observers perceive that they are losing a friendly country and a promising nearby market. This sentiment stems from political and diplomatic disputes that have impacted bilateral relations between France and Algeria, leading to concerns about diminishing influence. The French are closely monitoring the Algerian-German partnership, which they view as a significant shift in regional alliances.
Expanding Energy and Industry Ties
Algerian-German cooperation has expanded into sensitive sectors, encompassing various forms of energy, including fossil fuels and clean energy, as well as the automotive industry. This expansion into sensitive sectors notes Germany's growing role. Radio France Internationale reported on Sunday, June 12, that “several memorandums of understanding have been signed in various sectors, including industry and digital technology.” The increasing number of agreements between Algeria and Germany in recent years aims to diversify Algeria’s energy production and facilitate its export to Europe. This strategic goal shows the economic importance of these partnerships.
A primary joint project is the "South 2" corridor, a 3,300-kilometre gas pipeline designed to transport green hydrogen from North Africa to Europe. This ambitious project is a cornerstone of the burgeoning energy relationship. Two agreements were signed in Algeria recently, further cementing this cooperation. One agreement, financed by Germany’s Federal Ministry for Economic Cooperation and Development, focuses on digitizing and modernizing Algeria’s electricity network. This initiative aims to enhance Algeria's energy infrastructure. The second agreement was signed between Algeria’s Sonatrach and Germany’s VNG AG to develop green hydrogen projects, signaling a joint commitment to clean energy technologies.
Automotive Sector Developments
Germany’s automotive sector is expected to enter the Algerian market soon, according to reports, with a specialized delegation planning to visit between June 28 and July 3. The Algerian-German Chamber of Commerce and Industry announced last week that six German industrial companies would arrive in Algeria at the end of June to explore opportunities in the automotive sector. This delegation, specializing in automobile manufacturing and subcontracting, was sent at the request of Germany’s Ministry of Economic Affairs, Trade and Industry, indicating a concerted effort at the governmental level to foster these ties.
Italy has also established a strong economic relationship with Algeria, driven by both the energy market and the automotive sector. The Italian brand Fiat is currently the only global car brand producing vehicles in Algeria and marketing them locally. This makes Fiat a significant player in the Algerian automotive landscape. In contrast, the Renault factory in Oued Tlelat near Oran has been shut down for nearly six years, showing the challenges faced by some traditional partners.
Geopolitical and Economic Context
France remains the biggest loser among Algeria’s European partners when compared to Italy, Spain, and Germany. These developments follow the outcomes of the first Algerian-German investment summit held last year. French observers anticipate that relations between Algeria and Berlin will strengthen during the official visit of Algerian President Abdelmadjid Tebboune to Germany in mid-July. This upcoming visit is seen as a key moment for further cementing the partnership. According to official Algerian positions, France bears responsibility for these tensions.
French Concerns and Rivalries
French media have noted Algeria’s rapprochement with Berlin, which is seen as a competitor to Paris. This sentiment arises amid ongoing political and diplomatic disputes that have strained bilateral relations between France and Algeria, leading to concerns in France about diminishing influence. The growing economic ties between Algeria and Germany, particularly in energy and industry, are viewed through this lens in Paris. Observers in France perceive a shift in Algeria's international partnerships, with Germany increasingly positioning itself as a key European ally. French observers feel they are losing a friendly country and a promising nearby market due to these political and diplomatic disputes affecting bilateral relations. This development follows the outcomes of the first Algerian-German investment summit held last year, further fueling French concerns regarding its standing among Algeria's European partners compared to Italy, Spain, and Germany.