Bouden to start Tunisia on road to economic reforms

Tunisia’s Prime Minister Najla Bouden Romdhane says economic reform is a priority as her government sets about ending the country’s financial crisis.

Ms Bouden met the governor of the country’s central bank and the finance minister on Tuesday.

“The prime minister said the priority of her government is to balance public finances and to proceed with the necessary economic reforms,” the government said on Facebook.

On Monday, Tunisia’s President Kais Saied inaugurated the new Cabinet at Carthage Palace.

Under new rules introduced after Mr Saied suspended much of the country’s constitution last month, the Cabinet will answer to him rather than the prime minister.

The government will have to tackle problems such as massive unemployment, a bloated public wage bill, and loans coming due from foreign lenders within the coming weeks.

The central bank last week said it was worried about an acute shortage of external financial resources and foreign currency.

It said financing the budget carried economic risks, including increasing inflation, reducing the bank’s reserves and causing a drop in the value of the local currency.

Tunisia needs to raise at least $3.5 billion this year to service foreign debts and pay the wages of hundreds of thousands of employees in the public sector.

The US welcomed the appointment of Tunisia’s new government as a positive step and encouraged further action three months after the presidential consolidation of powers.

“The new government, which includes 10 female ministers, is a welcome step forwards towards addressing the significant economic, health and social challenges facing the country,” State Department spokesman Ned Price said.

“We look forward to further announcements to establish a broadly inclusive process for a rapid return to constitutional order.”

Mr Saied suspended Parliament in July. He sacked the government and assumed sole control of the country after months of growing public anger over an economic crisis and the handling of the Covid-19 pandemic.

Since his consolidation of power he has faced pressure from internal and external allies to move the country back towards the democratic process.

The US last week voiced disappointment over a crackdown on the media in Tunisia and the use of military courts to try civilians for critical remarks against the government.