Rome, Italy – Italy is strengthening its relationship with Algeria as tensions rise between Algeria and the European Union, positioning itself as a potential mediator in ongoing trade and investment disputes. This development comes as energy ties between the two nations become increasingly critical for Europe.
On July 23, 2025, Italy and Algeria showcased a united front during a summit in Rome, signaling a deepening partnership. Beyond the bilateral relationship, Italy aims to become a central point of contact between the EU and Algeria, officials stated.
The growing discord between Algeria and the EU stems from a dispute initiated on July 16, 2025, when the EU launched an arbitration procedure against Algeria. The EU alleges that Algeria has implemented measures to rationalize imports and regulate investments that are not in accordance with existing agreements. Algeria, though, has long sought a revision of the association agreement, arguing that its clauses are imbalanced in favor of Europe, a claim supported by trade data from the past two decades.
During the Rome summit, both countries agreed on the need to adapt the existing agreement to reflect a more equitable balance of interests. “The two parties agreed on the opportunity to adapt the Agreement taking into account the balance of interests of both parties,” read a joint statement released after the meeting.
Italy’s support for Algeria’s position on the agreement revision was explicitly stated. This stance could prove crucial as negotiations unfold between Algeria and Brussels. The development underscores the shifting dynamics within the EU as member states navigate their individual relationships with key North African partners.
Algeria’s natural gas exports to Europe have seen a significant increase, rising by 22% in January, according to recent reports. This surge in energy exports highlights Algeria’s growing importance as an energy supplier to the continent.
In a separate development on January 6, 2026, Italy, Algeria, Tunisia, and Libya convened to discuss a new European migration policy set to be implemented in 2026. The meeting signals a collaborative effort to address regional migration challenges and potentially influence the EU’s approach to border management and asylum procedures. The EU is facilitating a streamlined process for transferring asylum seekers to “safe” third countries.
The strengthening ties between Italy and Algeria, coupled with increased energy exports and collaborative discussions on migration, suggest a recalibration of relationships within the Mediterranean region. This could have significant implications for the future of EU-Algeria relations and broader regional stability.
