EU disburses $162m of aid to support economy in Tunisia
The EU followed through on it promise to provide Tunisia with a budgetary support package of €150 million ($162 million) on Monday.
The funds are intended “to support Tunisia in stabilising its macroeconomic situation and its efforts to improve the management of its public finances and the business climate”, the EU Commission said.
It also aims to strengthen the government’s capacity to ensure stable and inclusive growth amid a degrading socio-economic situation, the commission said.
The package is part of an economic reform agreement signed in December, as well as an agreement on a strategic and comprehensive partnership that was signed in July in the capital, Tunis.
President of the European Commission Ursula von der Leyen said the disbursement served as “a significant step forward” in the bloc’s partnership with its North African neighbour.
Oliver Varhelyi, the EU’s neighbourhood and enlargement commissioner, said the budget support is in line with efforts by the Tunisian government to effectively manage its finances and “the positive steps it has taken to render the investment climate more favourable”.
Despite this, many Tunisians feel the country’s economic reforms have fallen short, partially due to political instability and regular government reshuffles.
As part of its agreement, the EU promised Tunisia €900 million in financial aid based on a five-point programme that included economic reforms and stricter border control measures to curb irregular migration towards Europe.
The EU Commission says Tunisia is showing enough economic recovery signs to qualify for its support.
“The EU-Tunisia MoU [Memorandum of Understanding] signed last year has started to bear fruit on all five pillars and its implementation continues within the framework of a positive joint dynamic,” Mr Varhelyi said.