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.



Israeli Missiles Strike Gaza Hospital, Patients Evacuated

Palestinians inspect a site where medics said two Israeli missiles hit a building inside the Al-Ahli Arab Baptist Hospital in Gaza City, April 13, 2025. REUTERS/Dawoud Abu Alkas
Palestinians inspect a site where medics said two Israeli missiles hit a building inside the Al-Ahli Arab Baptist Hospital in Gaza City, April 13, 2025. REUTERS/Dawoud Abu Alkas
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Israeli Missiles Strike Gaza Hospital, Patients Evacuated

Palestinians inspect a site where medics said two Israeli missiles hit a building inside the Al-Ahli Arab Baptist Hospital in Gaza City, April 13, 2025. REUTERS/Dawoud Abu Alkas
Palestinians inspect a site where medics said two Israeli missiles hit a building inside the Al-Ahli Arab Baptist Hospital in Gaza City, April 13, 2025. REUTERS/Dawoud Abu Alkas

Two Israeli missiles hit a building inside a main Gaza hospital on Sunday, destroying the emergency and reception department and damaging other structures, medics said.
Health officials at the Al-Ahli Arab Baptist Hospital evacuated the patients from the building after one person said he received a call from someone who identified himself with the Israeli security shortly before the attack took place.
No casualties were reported, according to the civil emergency service.
The Israeli military was looking into the report, a spokesperson said.
Images circulating on social media, which Reuters could not immediately verify, showed dozens of people leaving the premises, with some appearing to be dragging sick relatives on hospital beds.
The Hamas-run government media office condemned the attack and said in a statement that Israel was deliberately destroying Gaza's healthcare system.