The Impact of European Regulation on Moroccan Remittances
The implementation of new European regulations is threatening one of Morocco's primary sources of income: remittances from Moroccans living abroad. These financial transfers account for approximately 7.5% of the country's GDP and have been on a consistent upward trajectory in recent years, prompting the Moroccan government to initiate negotiations to safeguard them. Following an agreement with France, discussions are ongoing with the Netherlands, and there are plans to extend these negotiations to Spain, particularly at a time when relations between the two countries are strained due to the ongoing migration crisis in Ceuta.
In the first half of 2026, Moroccans residing abroad sent nearly €5.7 billion back to their home country, marking a 9.9% increase compared to the previous year and a staggering 26% rise from the same period in 2022. The total of €11.3 billion recorded for the entirety of 2025 is almost four times the €2.9 billion in foreign direct investment that year, and it is close to the €12.76 billion generated from tourism. This stark contrast underscores the critical role that remittances play in Morocco's economy.
Moreover, the majority of the Moroccan diaspora is concentrated within the European Union, which amplifies the potential impact of any changes to community financial regulations on the economy of Morocco. Specifically, Spain and France each host around 1.1 million Moroccans, while Italy has about 428,000, Belgium 247,000, the Netherlands 176,000, and Germany 157,000, according to data compiled by Migranto. In 2021, France contributed 30.2% of the total remittances, followed by Spain with 13.3% and Italy at 10%, indicating that these three countries collectively accounted for more than half of the money sent to Morocco from abroad.
Significance and Concerns Over New Banking Rules
The importance of these remittances extends far beyond their contribution to the overall economy. According to the latest survey from the High Commissioner for Planning, quoted by the General Director of Bank Al-Maghrib, Abderrahim Bouazza, a staggering 87% of these funds are directed towards the current consumption of households. This highlights the critical nature of remittances as a vital income source for families in a country where significant inequalities persist.
This context raises concerns in Morocco regarding the impending enforcement of new European banking regulations. The directive tightens the conditions under which financial entities from third countries can offer specific services within the EU. While these regulations are not aimed directly at Morocco nor do they seek to limit remittances, the restrictions on the operations of non-EU banks may complicate the services provided by Moroccan financial institutions to their citizens residing in Europe, thereby affecting the flow of savings back to the country.
Bank Al-Maghrib Governor Abdellatif Jouahri recently acknowledged, "What we are trying to counteract is the possibility that financial flows remain in Europe." He explained that the goal is to ensure that remittances "continue to arrive as usual" in Moroccan bank accounts, thereby supporting national savings and ultimately contributing to investment.
To address these challenges, Rabat has established a working group involving Bank Al-Maghrib, the Ministries of Finance and Foreign Affairs, and the affected banking entities. After initial negotiations with the European Commission, Morocco has opted to seek bilateral solutions with the nations where its primary expatriate communities are concentrated.
The first agreement has been successfully reached with France, allowing Moroccan banks to maintain their intermediary activities in the country. Authorities are now negotiating with the Netherlands and plan to do the same with Belgium, Spain, and Italy. The situation with Spain is particularly sensitive given the recent migration crisis in Ceuta, which has put relations between the two countries under strain.
Jouahri noted that each state has some leeway in transposing European regulations, and the solution achieved with France may not necessarily apply automatically to other countries. Consequently, the central bank estimates that negotiations could extend throughout 2026, although initial discussions have shown positive indications.
As reported by eldebate.com.
