Due to the worsening political and diplomatic crisis between the two countries
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More than 1,500 other institutions are threatened if relations continue to deteriorate
Among the exciting issues revealed by the lengthy study conducted by the French “Montagnes” Institute related to Algerian-French relations, was the revelation of a bombshell that represented the bankruptcy of 600 French companies that export their products to Algeria, in one of the most prominent economic repercussions resulting from the political and diplomatic crisis that struck bilateral relations in the wake of the French President, Emmanuel Macron, siding in favor of the Moroccan regime on the issue of Western Sahara, more than two years ago.
It was stated specifically on page 40 of the French Research Center study that the crisis that struck Algerian-French relations in the year 2025 led to “bankruptcies affecting about 600 French companies that export their products to Algeria,” which is a large number. The French authorities did not expect this setback to occur at a time when the French economy is suffering from a structural crisis and huge public debts that have badly affected the social situation of the French.
Based on the same study, at least five thousand French companies that also feed on their exports to Algeria are also threatened with the same fate, because a third of these companies achieve more than a quarter of their turnover from their sales in the Algerian market, which “explains the relative stability of France’s share of the Algerian market, while this would constitute a danger if the crisis in diplomatic relations becomes more complex,” which is likely due to many outstanding issues, as well as the persistence of some French circles. Aiming to attack Algerian interests and target the Algerian community residing there.
Among the losses incurred by France in its relations with Algeria is the withdrawal of the global giant “Michelin”, specialized in the manufacture of wheels, from the Algerian market, according to the same source. Before that, the “Renault” factory in the Tlilat Valley in Oran stopped working since 2020, and all attempts made by various French officials to revive it again failed, in addition to the decline in French wheat exports to Algeria by nearly ninety percent, the study says.
Despite these difficulties, several major French companies continue to bet on Algeria, according to the study, which pointed to the desire of the global French giant active in the maritime transport sector, the CMA CGM company (which has been occupying the first share of the maritime transport market in Algeria for a long time), to manage the port of Oran. However, this desire is still pending, so that despite the passage of quite a short period of time since these negotiations, they have not yet led to a tangible result.
In Algeria, French investments (not exceeding 2.8 billion euros) are seen as being limited to some unproductive sectors, such as the services sector (banking and insurance), which made them fall in the eyes of the Algerians, compared to the rise in investments from competing countries such as Türkiye, which reached four billion euros.
This does not necessarily mean that this bleeding will stop in light of the cautious calm that has characterized bilateral relations since the beginning of this year, which was marked by mutual visits by officials from the two countries, so that the relationship remains a possibility of a setback if the extreme right, led by Marine Le Pen, is able to occupy the throne of the Elysee Palace in the upcoming presidential elections, which is a highly likely possibility, according to opinion polls that have been conducted continuously for months.
French businessmen, along with some moderate politicians, have long warned of the dangers of the continuation of the diplomatic crisis between the two countries, to the economic interests of French investors in Algeria, led by the President of the Algerian-French Chamber of Industry and Commerce, Michel Pezac, who warned earlier that the continued deterioration in political and diplomatic relations would affect French economic interests in Algeria.
The former socialist minister and candidate for the French presidential elections, Ségolène Royal, had previously held, on many occasions, the Emmanuel Macron administration, and anti-Algerian circles, responsible for the loss of French interests due to “actions that do not take into account the privacy of bilateral relations. Emmanuel Macron has suspended diplomatic relations without justification. The global chaos reminds us of a basic principle: that coexistence with neighbors is the basis of peace and development.”
