Algerian-Italian diplomatic ties: Algiers paying its dept to Rome?
Algerian President Abdelmajid Tebboune reaffirmed the strength of the diplomatic ties between Algiers and Rome during a televised interview with national media on February 24, 2023. He referred to Italy's support for Algeria against European pressure in the 1990s, when Algeria faced a civil war that threatened its stability and security, saying that Algeria “will have Italy’s back today”.
According to Tebboune, Algeria has benefited greatly from Italy, and its policy is to remember and appreciate the help they have received. He also mentioned the positive relationship and strategic partnership between the two countries since Algeria's independence. Tebboune brought up the 90s when European airlines boycotted Algeria, except for Italy, who continued to fly to the country and even offered a credit line of $13 billion.
While history has traditionally been Algeria’s diplomatic compass when deciding its international allegiances, this statement reflects Algeria's rationale for enhancing its diplomatic and economic collaboration with Italy amid a growing divergence between this North African nation and its other traditional European partners, France and Spain over historic matters related to the colonial era.
Growing diplomatic relations
The Algerian-Italian relations have reached an unprecedented level of cooperation and mutual trust in recent years. This was evident in the frequent exchange of high-level visits between the two countries. In January 2023, Italian Prime Minister Giorgia Meloni visited Algiers for two days and praised Algeria as Rome's "most stable, strategic and long-standing" partner in North Africa. This visit followed two similar ones by her predecessor, Mario Draghi, who signed an energy contract worth €4 billion with Tebboune in July 2022 to increase gas imports from Algeria from 14 billion cubic meters in 2021 to 20 billion cubic meters in 2022. This deal made Algeria Italy’s biggest gas supplier and raised Algeria's share of Europe's gas imports to over 12% in 2022, from 10% in 2021.
The Algerian-Italian relations have been largely stable since the establishment of diplomatic ties in 1962. The two countries have maintained regular political dialogue and economic cooperation on various issues of common interest. In 2018, Italian President Sergio Mattarella visited Algeria and met with Algerian President Abdelaziz Bouteflika to discuss topics such as economic cooperation, security, and migration. Bouteflika had visited Rome four times during his four terms as president: in 1999, 2003, 2008, and 2011.
In addition to these high-level visits, there have been numerous other diplomatic exchanges between Algeria and Italy over the years. For example, in 2017, the Algerian and Italian foreign ministers met in Rome to discuss ways to enhance bilateral cooperation in areas such as energy, agriculture, and tourism. The Italian foreign minister Angelino Alfano conducted a similar visit to Algiers the year after. These meetings and exchanges demonstrate the importance that both countries place on maintaining a positive and constructive relationship regardless of the ideologies of the people in power in each country.
Growing economic cooperation
Gas remains an essential element of the Algerian-Italian cooperation talks, but Sonatrach and Eni, the two countries' energy companies, have also expanded their collaboration in the broader energy sector by signing two additional agreements in 2023. The first agreement aims to reduce CO2 emissions, especially in hydrocarbon production facilities, by implementing innovative technologies and solutions. The second agreement involves providing Italy with hydrogen through a new gas pipeline passing through Sardinia, for which feasibility studies are underway. This pipeline would transport hydrogen and electricity too and would complement the existing Transmed gas pipeline passing through neighbouring Tunisia. The new pipeline would enhance Italy's position as Europe's new energy hub amid the Ukraine war and the deteriorating Algeria-Spain relations.
While trade between the two countries has doubled from 8 billion dollars in 2021 to 16 billion in 2022, the Algerian president has expressed his country’s ambitions clearly. Algiers aims for Italy to “become a platform for distribution of Algerian energy products in Europe” and “to enlarge cooperation beyond energy”. He described their relationship as “strategic” and said they plan on building it further. To this end, Italy’s Confindustria industrial lobby plans to improve cooperation efforts with Algerian businesses, and the Algerian Space Agency signed an agreement with its Italian counterpart to develop joint projects. However, one of Italy’s most significant economic endeavours in Algeria outside the energy sector is Fiat’s first car production plant in Algeria, following an agreement with the Algerian government. The project aims to boost the automotive industry in Algeria and offer affordable and eco-friendly mobility solutions to the Algerian market. The plant will have an initial production capacity of 30,000 vehicles per year and will create about 1,000 direct jobs and 3,000 indirect jobs.