After Algeria suspended its 2002 Treaty of Friendship, Good-Neighbourliness and Cooperation with Madrid last Wednesday, the European Union warned Algeria about the

implications of Algeria's trade restrictions on Spain after the latter changed its position on Western Sahara, while the Algiers Mission to the European Union denied those restrictions. EU Foreign Policy Officer Josep Borrell and the Commission's Vice-President responsible for trade, Valdis Dombrovskis, considered this decision to be "very worrying."

On 18 March, Spain radically amended its position on the sensitive issue of Western Sahara to publicly support Morocco's autonomy proposal, thus angering Algeria, the main supporter of the Frente Popular para la Liberación de Saguía el-Hamra y de Río de Oro Polisario.

The European Union statement added that "We assess the implications of Algeria's actions, in particular the instructions issued to financial institutions" to cease transactions between the two countries that appear to violate the EU-Algeria partnership agreement, especially in the field of trade and investment. "

The European officials stressed after a meeting in Brussels with Spanish Foreign Minister José Manuel Albares that "this would lead to discriminatory treatment of a member State of the European Union and prejudice the exercise of the Union's rights under the Convention".

He suggested that the European Union was "prepared to oppose any type of coercive action applicable to a Member State".

On Friday evening, Algeria deplored "the European Commission's prompt position without prior consultation or any verification with the Algerian Government".

The Algiers Mission to the European Union regretted that the Commission had "failed to verify" that "Algeria's suspension of a bilateral political treaty with a European partner, in this case Spain, does not directly or indirectly affect its obligations under the Algiers-European Union Partnership Agreement".

In a statement in French, the Algerian Mission added that "with regard to the Government's alleged action to suspend transactions with a European partner, it is only in the minds of those who call it and those who are quick to denounce it".

Algeria also denied any disruption in the delivery of gas to Spain, stating: "Algeria has already made clear through... the President of the Republic will continue to fulfil all the commitments it has undertaken in this context, with business companies concerned fulfilling all their obligations under the contracts ".

"We will vigorously defend our companies and the interests of Spain, which are also European companies," the Spanish minister said.