On Monday, the European Union and Algeria signed a $42 million package to support Algeria diversify its economy and improve business climate through the development of renewable energy to modernisation of public finances.
The package was signed by Federica Mogherini, high representative of the union for foreign affairs and security policy/vice-President of the commission and Johannes Hahn, representing the EU as well as Algerian minister of foreign affairs Ramtane Lamamra.
Commenting on the development was Johannes Hahn, Commissioner for European Neighbourhood Policy and Enlargement Negotiations, who said: "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. Our aim is to help Algeria meet its current economic challenges, and create stronger links with European businesses.”
According to a press release, the EU will provide support in two particular areas, economic development and energy. Read more...
The measures support the country's new economic approach focused on the diversification of its economy.
The package will also address the improvement of the business climate in Algeria.
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.
The package comprises of three specific programmes:
- Support programme for the development of renewable energy and promotion of energy efficiency with a backing of $10 million. The programme is meant to help set up an institutional and regulatory framework for the production of renewable energy and for the deployment of energy efficiency projects. The programme will also help promote private investment (domestic and foreign) in renewable energy and energy efficiency projects. Read more...
- Reform of public finances with $10 million backing, the programme will help modernise the management of public finances. The programme will support the introduction of an integrated financial information system across all departments of the ministry of finance. The media statement noted that the programme will help build capacity in multi-annual budgetary programming and improve budgetary management and transparency.
- Support programme for the implementation of the Association Agreement ($22 million) will continue to strength Algeria's legal and regulatory framework as well as its institutional capacities in key public policies, so that country can seize the opportunities offered by the Association Agreement, a cooperation and free trade agreement with the EU which entered into force in 2005.