Tunisia's Parliament Votes on New Prime Minister Amid Crisis

Tunisian designated Prime Minister Hichem Mechichi, first row at right, sits with members of his cabinet at the parliament before a confidence vote in Tunis, Tuesday, Sept. 1, 2020. (AP Photo/Riadh Dridi)
Tunisian designated Prime Minister Hichem Mechichi, first row at right, sits with members of his cabinet at the parliament before a confidence vote in Tunis, Tuesday, Sept. 1, 2020. (AP Photo/Riadh Dridi)
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Tunisia's Parliament Votes on New Prime Minister Amid Crisis

Tunisian designated Prime Minister Hichem Mechichi, first row at right, sits with members of his cabinet at the parliament before a confidence vote in Tunis, Tuesday, Sept. 1, 2020. (AP Photo/Riadh Dridi)
Tunisian designated Prime Minister Hichem Mechichi, first row at right, sits with members of his cabinet at the parliament before a confidence vote in Tunis, Tuesday, Sept. 1, 2020. (AP Photo/Riadh Dridi)

The Tunisian parliament is holding a confidence vote Tuesday on a new prime minister and his proposed government as the North African country faces deep economic crisis worsened by the coronavirus pandemic and after a conflict-of-interest scandal pushed out the previous officeholder.

If Prime Minister-designate Hichem Mechichi wins the confidence vote, his government would be the third Tunisia has seen since October and the ninth since the revolution that brought down Tunisia's autocratic regime in 2011 and triggered Arab Spring uprisings across the region.

Tunisia's parliament voted down a previous prime minister-designate earlier this year after marathon debate. Lawmakers eventually approved a replacement candidate, Elyes Fakhfakh, but he stepped down as prime minister last month amid anger over his holdings in a waste processing company that won state contracts.

Mechichi, 46, is a former interior minister and lawyer who studied in Tunisia and France. He proposed a government with 25 ministers and three secretaries of state that includes seven women and a blind man.

Ahead of the vote, he said the new government would focus on "social and economic questions and respond to the urgent concerns of Tunisians."

Tunisia's economy was already struggling when the virus hit, hurting the country's important tourism sector among others. According to the National Institute of Statistics, the unemployment rate grew from 15% to 18% in the first half of 2020, and gross domestic product shrank 21% in the second quarter.

After days of tense negotiations, Islamist movement Ennahdha, which has the largest parliamentary bloc, announced just hours before the scheduled confidence vote that it would vote in favor of the Mechichi government. Some other parties have also promised their support.

If the government is rejected, the president could dissolve parliament and call a new election.



Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
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Israel to Use Withheld Palestinian Tax Income to Pay Electric Co Debt

Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)
Smoke rises from Jenin in the occupied West Bank, during clashes between militants and the Palestinian Authority's security forces, inside the Jenin refugee camp, on January 12, 2025. (Photo by JAAFAR ASHTIYEH / AFP)

Israel plans to use tax revenue it collects on behalf of the Palestinian Authority to pay the PA's nearly 2 billion shekel ($544 million) debt to state-run Israel Electric Co (IEC), Finance Minister Bezalel Smotrich said on Sunday.

Israel collects tax on goods that pass through Israel into the occupied West Bank on behalf of the PA and transfers the revenue to Ramallah under a longstanding arrangement between the two sides.

Since the Hamas-led attack on Israel on Oct. 7, 2023, triggered the war in Gaza, Smotrich has withheld sums totaling 800 million shekels earmarked for administration expenses in Gaza.

Those frozen funds are held in Norway and, he said at Sunday's cabinet meeting, would instead be used to pay debt owed to the IEC of 1.9 billion shekels, Reuters reported.

"The procedure was implemented after several anti-Israeli actions and included Norway's unilateral recognition of a Palestinian state," Smotrich told cabinet ministers.

"The PA's debt to IEC resulted in high loans and interest rates, as well as damage to IEC's credit, which were ultimately rolled over to the citizens of Israel."

The Palestinian Finance Ministry said it had agreed for Norway to release a portion of funds from an account held since last January with 1.5 billion shekels, calling money in the account "a punitive measure linked to the government’s financial support for Gaza.”

The ministry said as part of the deal, 767 million shekels of the Norwegian-held funds will pay Israeli fuel companies for weekly fuel purchases over the coming months. A similar amount will be used to settle electricity-related debts owed by Palestinian distribution companies to IEC.

Smotrich has been opposed to sending funds to the PA, which uses the money to pay public sector wages. He accuses the PA of supporting the Oct. 7 attack in Israel led by Hamas, which controlled Gaza. The PA is currently paying 50-60% of salaries.

Israel also deducts funds equal to the total amount of so-called martyr payments, which the PA pays to families of militants and civilians killed or imprisoned by Israeli authorities.

The Palestinian finance ministry said 2.1 billion shekels remain withheld by Israel, bringing the total withheld funds to over 3.6 billion shekels as of 2024.

Israel, it said, began deducting an average of 275 million shekels monthly from its tax revenues in October 2023, equivalent to the government’s monthly allocations for Gaza.

"This has exacerbated the financial crisis, as the government continues to transfer these allocations directly to the accounts of public servants in Gaza," the ministry said.

It added it was working with international partners to secure the release of these funds as soon as possible.