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.



Aoun Wants Formation of ‘Consensual’ Lebanese Govt Representing All Components

Lebanese President Joseph Aoun.
Lebanese President Joseph Aoun.
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Aoun Wants Formation of ‘Consensual’ Lebanese Govt Representing All Components

Lebanese President Joseph Aoun.
Lebanese President Joseph Aoun.

Lebanese President Joseph Aoun is advocating the formation of a government of “consensus” that includes representatives from all political factions.

Meanwhile, Prime Minister-designate Nawaf Salam has requested that parliamentary blocs submit non-partisan nominees for ministerial positions, emphasizing that they must not belong to any political party.

Aoun stressed on Tuesday that all components of society have the right to be represented in the government, parliament and public administration, as this is already practiced in the army.

“We have significant opportunities that we hope to seize by uniting all elements of Lebanese society—civil, spiritual, and political. Together, we can rebuild our nation,” he declared.

Highlighting the importance of meeting international expectations, Aoun hoped for the rapid formation of a government to achieve political, economic, and security stability, which would allow citizens “to live with dignity, not merely in relative comfort.”

During meetings with professional delegations at the Presidential Palace, Aoun said: “We are at a crossroads. Either we take advantage of the current circumstances and rise above sectarian, religious, and political divisions, or we head in a different direction and bear full responsibility for failing to fulfill our duties.”

Negotiations between Aoun, Salam, and political factions over the formation of a government are ongoing. The discussions, which kicked off last week, have reportedly made progress, with efforts directed toward expediting the government formation process, issuing decrees, preparing a ministerial statement, and securing its vote of confidence from lawmakers.

While the Shiite duo of Hezbollah and the Amal Movement appear to have finalized their proposed nominees for the government, disagreements over the ministerial statement remain.

MP Waddah Sadek, who is backed by the opposition, firmly rejected the inclusion of the “Army, People, Resistance” term in the statement. He declared: “No ‘blocking third’ in the government, and no unconstitutional gimmicks. The slogan of the new phase in Lebanon should be: the ‘Army, People, and State.’”

The Kataeb Party echoed this stance, stressing that Lebanon, emerging from a devastating war between Hezbollah and Israel, must align with the Aoun’s inaugural speech and Salam’s remarks by ensuring the ministerial statement exclusively underscores the state’s monopoly over arms and the defense of the nation.

“The government must act decisively, dismantle militias, strictly enforce the ceasefire, and uphold its provisions across all Lebanese territory,” it demanded.

The Kataeb Party also urged Aoun and Salam to resist the “great extortion” by Hezbollah and Amal to secure specific ministries or positions, in violation of the inaugural speech, calling instead for the application of uniform standards to ensure the government’s success.

Meanwhile, Hezbollah adopted a more confrontational tone.

MP Hussein Hajj Hassan, a member of Hezbollah’s parliamentary bloc, commented: “To those betting on Hezbollah’s weakness or the weakness of the Hezbollah-Amal alliance, what will you say when the government is formed? What will you say when you realize the strength of Hezbollah, the alliance, and the resistance’s supporters across all segments of Lebanese society? What will you say when you see the unwavering determination and unity of the resistance at every critical juncture?”