{"id":64941,"date":"2022-12-10T00:20:45","date_gmt":"2022-12-09T23:20:45","guid":{"rendered":"https:\/\/jazairhope.org\/?p=64941"},"modified":"2022-12-09T19:06:37","modified_gmt":"2022-12-09T18:06:37","slug":"algiers-madrid-crisis-colossal-losses-for-spanish-companies","status":"publish","type":"post","link":"https:\/\/jazairhope.org\/en\/algiers-madrid-crisis-colossal-losses-for-spanish-companies\/","title":{"rendered":"Algiers-Madrid crisis: colossal losses for Spanish companies"},"content":{"rendered":"

On Wednesday, June 8, 2022, as a result of the\u00a0U-turn by Madrid on the question of Western Sahara<\/strong>\u00a0to support the Moroccan plan, Algeria has decided to\u00a0break the \u201ctreaty of friendship, good neighborliness and cooperation\u201d<\/strong>\u00a0which has linked it with Spain since 2002. This has led, in particular, to the\u00a0freezing of banking transactions between the two countries<\/strong>so the suspension of the\u00a0trade<\/strong>.<\/p>\n

Dispute with Algeria, a salty economic bill for Spain<\/h2>\n

Since the\u00a0economic exchanges<\/strong>\u00a0between Spain and Algeria have been badly affected and six months after the adoption of these reprisal measures, the\u00a0shortfall for Iberian companies amounts to hundreds of millions of euros<\/strong>. Alone continues\u00a0gas supply<\/strong>but with a\u00a0upward price revision<\/strong>as Sonatrach announced on October 6 when concluding the contract with its Spanish client, Naturgy.<\/p>\n

\n

\"The<\/p>\n

President Abdelmadjid Tebboune receives the President of the Spanish Government, Pedro Sanchez.<\/p>\n<\/div>\n

Between June and July 2022, just one month after the friendship treaty was broken, the\u00a0exports from Spain to Algeria<\/strong>\u00a0fell to 94 million euros, compared to 329 million during the same period in 2021.\u00a0A shortfall for the Iberian economy which therefore amounts to 235 million euros<\/strong>\u00a0(statistics from the Spanish Ministry of Tourism, Industry and Trade).<\/p>\n

|\u00a0READ ALSO: Algiers-Madrid crisis, huge economic losses for Spain<\/strong><\/p>\n

<\/div>\n

Four months later,\u00a0the amount of losses has doubled<\/strong>\u00a0to reach the sum of 487 million euros (official figures). Indeed, the Spanish Ministry of Commerce has indicated that between June and September 2022, exports to Algeria barely reached\u00a0138 million euros<\/strong>while over the same period in 2021, these peaked at\u00a0625 million euros<\/strong>.<\/p>\n

Hit hard, Spanish companies are waiting for a solution<\/h2>\n
<\/div>\n

Today, six months after Algeria\u2019s decision to break the friendship and cooperation treaty with Spain,\u00a0exports are blocked, investments frozen, projects paralyzed\u00a0<\/strong>and economic exchanges between the two countries remain at a standstill. Faced with this unprecedented and complex situation, Spanish companies are paying a heavy price.<\/p>\n

\n

\"port<\/p>\n

Since June 2022, Spanish companies can no longer export to Algeria.<\/p>\n<\/div>\n

Julio Lebrero, boss of Aecomhel, an SME manufacturing public works machinery, almost all of whose activity is in Algeria, told AFP that since June, his company can neither export nor import. \u201cAll operations are on stand-by, he laments.\u00a0It\u2019s been six months since we\u2019ve charged a single euro<\/strong>\u201c. It should be noted, however, that the crisis also affects certain Algerian SMEs which depend on raw materials and spare parts imported from Spain.<\/p>\n

\n

 <\/p>\n

Construction, ceramics, textiles\u2026 in many sectors, <\/span>\u201ceverything is on hold<\/strong>\u201cSays to AFP the president of the Algerian-Spanish Circle of Commerce and Industry (CCIAE), Djamel Eddine Bouabdallah. For\u00a0<\/span>circumvent the freezing of banking operations to and from Algeria<\/strong>, \u201ccertain Spanish groups transit their goods via third countries\u201d. This very costly operation is, however, only within the reach of large companies.<\/span><\/div>\n

 <\/p>\n<\/div>\n

<\/div>\n

Faced with this imbroglio that is slow to resolve,\u00a0Spanish business leaders get discouraged<\/strong>. \u201cWe asked the authorities for help, but got no response,\u201d laments a spokesperson for Anffecc, an association of ceramics manufacturers, a sector highly dependent on the Algerian market. Julio Lebrero denounces: \u201cThe government has completely abandoned us\u201d. As for Mr. Tapia, he hopes for a \u201cquick solution\u201d, because \u201cthe current situation, he judges, is not good for anyone. \u00bb<\/p>\n

Source : https:\/\/california18.com\/algiers-madrid-crisis-colossal-losses-for-spanish-companies-2\/8277552022\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

On Wednesday, June 8, 2022, as a result of the\u00a0U-turn by Madrid on the question of Western Sahara\u00a0to support the Moroccan plan,…<\/p>\n","protected":false},"author":50,"featured_media":64942,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[12,11],"tags":[],"class_list":["post-64941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-politics"],"yoast_head":"\nAlgiers-Madrid crisis: colossal losses for Spanish companies - AAH.JZR<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/jazairhope.org\/en\/algiers-madrid-crisis-colossal-losses-for-spanish-companies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Algiers-Madrid crisis: colossal losses for Spanish companies - 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