COVID-19 has brought about significant changes to global supply chains, prompting a reassessment of the strategic importance of North African countries like Algeria, Morocco, and Tunisia in the context of European economic ties. This report highlights the potential for these nations to become more integrated into the European Union's economic strategies due to the repatriation of parts of international companies' value chains.
The Barcelona Process, initiated in 1995, aimed to establish economic, political, and cultural cooperation among European states and North African countries. However, its effectiveness was limited by the continued reliance on mercantilist practices, particularly those favored by France in its former colonies. The report underscores the need for a more comprehensive approach that focuses on economic cooperation rather than solely on security concerns.
In North Africa, Morocco and Tunisia have shown reasonable diversification in their economies, while Algeria remains heavily reliant on oil and gas exports, accounting for 95% of foreign receipts. This dependence on natural resources and a state-controlled economy pushes the private sector to the periphery. Additionally, high military and security expenditures consume a significant portion of the budget, further limiting economic development.
The report suggests that the EU should reconsider its approach to enhancing partnerships with North African states, emphasizing the importance of a relationship of equals. This would necessitate more generous offers of economic partnership alongside reforms that could foster economic growth, job creation, and the rule of law in the region. The EU's current tight-fisted approach, while beneficial in some respects, does not adequately address the need for a more balanced partnership.
The report also critiques the lack of imagination in European policy-making, pointing out missed opportunities for collaboration, such as the absence of an EU-funded economic institute in Tunis that could provide unbiased economic analysis for Tunisians. The media landscape in North Africa is constrained by a lack of trained journalists and an effective "omerta" that suppresses economic information, highlighting the need for more transparency and accountability.
In summary, the report advocates for a renewed focus on broad economic partnerships with North African countries, suggesting that such an approach could mitigate geopolitical tensions, reduce economic disparities, and foster a more nuanced understanding of the region's dynamics. By addressing the root causes of instability and promoting economic growth, Europe can better engage with its neighbors in a way that respects their sovereignty and supports their self-determination.