Algeria and Spain find themselves at a delicate crossroads this week as authorities describe recent moves as sovereign choices rather than routine commercial adjustments. A memo released to the official APS news agency outlines a shift in the stance toward trade with Spain, signaling that state prerogatives are guiding this relationship rather than actions by professional clubs or associations in the financial sector.
Banking leaders in Algeria have publicly distanced themselves from the actions of the Association of Banks and Financial Institutions, or ABEF, as tensions over the June 9 restrictions were revisited on Thursday, July 28. The note suggests that automatic payments and other foreign trade transactions between the two nations were suspended, a move that appears to be rooted in broader diplomatic and regulatory considerations rather than routine banking operations alone.
ABEF, which includes about thirty banks and financial institutions active in Algeria, defended the rights and interests of professional bodies and their members after receiving the memo through official channels. The organization emphasized its role in representing industry concerns while the state adjusted its stance on bilateral engagement with Spain.
The memo rebuts media claims about a decline in Algeria-Spain trade, asserting that there has been no official disclosure from competent authorities about such a trend. It frames the current discussions as a matter of state policy, not as a consequence of market forces reported by the press.
The decision by ABEF to act followed the suspension of a bilateral Friendship Treaty earlier in June. Although the government did not publicly explain the rationale at that time, customs operations were frozen and new trade operations were halted, impacting the flow of goods between the two countries.
In the following days, official channels conveyed that financial and commercial decisions are made by entities bound to the state and announced through the Council of Ministers, the Ministry of Finance, or the central bank. Such statements are released via formal channels to ensure clarity and unity of message in the midst of a political disagreement.
Algeria has called the suspension a sovereign decision and has labeled some press analyses as hasty or unfounded. The government argues that the measures are designed to prevent disruption to Algeria’s material and economic commitments, and to address perceived violations of EU trade frameworks by a European partner on a bilateral basis rather than as a broader problem with the bloc.
The Ministry of Foreign Affairs issued a formal statement arguing that the situation is a political dispute with a neighboring European country, one that concerns bilateral interests and does not alter Algeria’s contractual obligations with the European Union as a whole. The tone stresses that the divergence is about policy choices rather than a wholesale rift with the EU or its member states, and it stresses a commitment to orderly execution of state decisions.
The current diplomatic strain between Algeria and Spain traces back to Madrid’s revised approach to Western Sahara, where Spain supported a proposal for autonomy for the former Spanish colony within Morocco. The shift signaled a strategic departure from the longstanding emphasis on a referendum on self-determination, contributing to the recent rift and a pause in traditional trade flows between the two nations.
As both sides navigate this stiffening stance, officials emphasize that the conflict remains bilateral and does not imply broader disruption of Algeria’s relations with other partners or with the European Union. The ongoing dialogue is framed as one element of a larger, orderly process where sovereign decisions are exercised with careful consideration of broader regional and international implications, especially in the area of trade and investment confidence.