French President Emmanuel Macron on Tuesday renewed France's support for Moroccan sovereignty over the disputed Western Sahara.
Speaking to Morocco's parliament in the capital Rabat on the second day of his state visit, Macron pledged French investment in the largely Moroccan-controlled territory.
Deals with Morocoo involving Western Sahara have been a problem for European governments.
In October, the EU's top court upheld the cancellation of trade deals allowing Morocco to export Sahrawi products to the 27-nation bloc.
"French companies will support the development of Western Sahara," said Macron. "Their present and future belong under Moroccan sovereignty."
Macron's comments come a day after the two countries signed several energy and infrastructure deals worth an estimated €10 billion.
Disputed territory
The Algerian-backed Polisario Front has campaigned for independence of Western Sahara since before Spanish government forces pulled out of their former colony in 1975.
The United Nations considers Western Sahara a "non-self-governing territory" and has had a peacekeeping mission there since 1991 with the aim of organising a referendum on the territory's future.
But Morocco has repeatedly rejected any vote in which independence is an option.
France's stance on the issue has been ambiguous in recent years, which – in addition to Macron's efforts to improve links with Algeria – strained ties between Morocco and France.
Ties
The two governments have also clashed over other issues, including migration. In 2021, France halved the number of visas granted to Moroccans.
However, Macron began easing tensions when he said in July that Morocco's offer of autonomy for the territory under its sovereignty was the only basis to resolve the conflict.
France's diplomatic U-turn had been awaited by Morocco. The United States recognised Morocco's annexation of Western Sahara in return for Morocco normalising ties with Israel in 2020.
But the stance has come at a cost. After Macron endorsed Morocco's autonomy plan, Algeria withdrew its ambassador to Paris and has yet to send a replacement.
And a state visit to Paris by Algerian President Abdelmadjid Tebboune was called off earlier this month following several attempts to reschedule.
(with newswires)
