Tunisia Govt, UGTT Union Sign Deal on Economic Reforms

Tunisia's Prime Minister Hichem Mehcichi. (AFP file photo)
Tunisia's Prime Minister Hichem Mehcichi. (AFP file photo)
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Tunisia Govt, UGTT Union Sign Deal on Economic Reforms

Tunisia's Prime Minister Hichem Mehcichi. (AFP file photo)
Tunisia's Prime Minister Hichem Mehcichi. (AFP file photo)

Tunisia's government and the powerful UGTT labor union signed an economic reform package on Wednesday that tackles subsidies, taxes and state firms, Prime Minister Hichem Mehcichi said.

The deal, which comes as Tunisia grapples with unprecedented financial problems, could open the way for an agreement with the International Monetary Fund.

"It is a historic agreement on important battles in our country," Mechichi said.

The agreement includes a plan to start reforms for seven state companies, including Tunisair and the STEG Electricity Company.

Details of the reforms plan will be unveiled later.

The IMF urged Tunisia to cut its wage bill and limit energy subsidies to reduce a fiscal deficit, putting more pressure on the government amid a severe financial and political crisis.

"A very good step that shows that we are the ones who choose our reforms and agree on them without anyone dictating them to Tunisia," Finance Minister Ali Kooli told Reuters.

Kooli said that a Tunisian delegation would start discussions with the IMF over a financing program in two weeks, adding that reaching a deal with IMF would improve Tunisia's credibility and allow it to mobilize foreign loans.

Tunisia’s 2021 budget forecasts borrowing needs of $7.2 billion, including about $5 billion in foreign loans. It puts debt repayments due this year at 16 billion dinars ($5.75 billion), up from 11 billion dinars in 2020.



One Killed in Israeli Drone Strike in South Lebanon

Lebanese security forces set up a checkpoint on the road leading to the scene of an Israeli airstrike in Baawerta (Baaouerta), near the coastal town of Damour, about 20 kilometres south of Beirut, on April 22, 2025. (Photo by Mahmoud ZAYYAT / AFP)
Lebanese security forces set up a checkpoint on the road leading to the scene of an Israeli airstrike in Baawerta (Baaouerta), near the coastal town of Damour, about 20 kilometres south of Beirut, on April 22, 2025. (Photo by Mahmoud ZAYYAT / AFP)
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One Killed in Israeli Drone Strike in South Lebanon

Lebanese security forces set up a checkpoint on the road leading to the scene of an Israeli airstrike in Baawerta (Baaouerta), near the coastal town of Damour, about 20 kilometres south of Beirut, on April 22, 2025. (Photo by Mahmoud ZAYYAT / AFP)
Lebanese security forces set up a checkpoint on the road leading to the scene of an Israeli airstrike in Baawerta (Baaouerta), near the coastal town of Damour, about 20 kilometres south of Beirut, on April 22, 2025. (Photo by Mahmoud ZAYYAT / AFP)

An Israeli drone strike on a Lebanese border town on Sunday killed one person, Lebanon's health ministry said.

The ministry reported in a statement "one martyr" from "the drone strike launched by the Israeli enemy on the town of Halta,” in southern Lebanon.

Local media said the man was killed while working on his chicken farm.

Israel has continued to carry out regular strikes in Lebanon despite the November truce that sought to halt more than a year of hostilities with Hezbollah, including two months of all-out war.

A pair of Israeli strikes on Tuesday killed a leader of Jamaa Islamiya in Baawerta, on the coast south of Beirut, and one person who Israel said was a local Hezbollah commander in south Lebanon's Tyre district.