Weekly mass demonstrations forced veteran president Abdelaziz Bouteflika to resign in April, leaving Algeria in constitutional limbo and facing a stand-off between the protesters and the army-backed government.
An independent electoral commission will be formed to oversee the upcoming election. The army, the strongest institution in Algeria, earlier sought for a presidential election as soon as possible to break the deadlock between the protesters and the authorities.
Algeria is a key gas supplier to Europe and it is a U.S. partner in its fight against militant Islamist groups in the Sahara and Sahel regions.
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