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.



Hopes for Temporary Agreement to Extend Gaza Truce During Eid

 Palestinians buy food and presents in preparation for Eid al-Fitr celebrations at Al-Zawiya market in Gaza City Friday March 28, 2025.(AP)
Palestinians buy food and presents in preparation for Eid al-Fitr celebrations at Al-Zawiya market in Gaza City Friday March 28, 2025.(AP)
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Hopes for Temporary Agreement to Extend Gaza Truce During Eid

 Palestinians buy food and presents in preparation for Eid al-Fitr celebrations at Al-Zawiya market in Gaza City Friday March 28, 2025.(AP)
Palestinians buy food and presents in preparation for Eid al-Fitr celebrations at Al-Zawiya market in Gaza City Friday March 28, 2025.(AP)

As Eid al-Fitr approaches, mediators are intensifying their contacts with Hamas and Israel in an attempt to reach an agreement, even if only temporary, that could pave the way for broader negotiations aimed at securing a permanent ceasefire in Gaza.

Mediators are pushing for a resolution before the first day of Eid, expected on Sunday or Monday, with growing optimism about the possibility of achieving an “Eid truce”—provided that Hamas and Israel respond positively to the current proposal.

According to Israel’s Channel 12, Qatar and the United States are working on a proposal under which Hamas would release Israeli-American soldier Edan Alexander in exchange for a clear and public call from US President Donald Trump for direct ceasefire negotiations.

Israeli Prime Minister Benjamin Netanyahu’s office denied receiving such a proposal, while Hamas has yet to comment.

On Friday, Bassem Naim, a senior Hamas political official, expressed hope that the coming days would bring a significant breakthrough in the conflict.

Mediation efforts had intensified in recent days to establish an agreed-upon framework for resolving the crisis—focusing on a ceasefire, opening border crossings, allowing humanitarian aid, and most importantly, resuming negotiations for a second phase that would lead to a complete halt to the war and Israeli withdrawal, he revealed.

“Hamas is approaching these proposals with full responsibility, flexibility, and a commitment to alleviating the suffering of our people, securing their presence on their land, and reopening the path to reclaiming their rights,” Naim stated.

Senior Hamas sources familiar with the negotiations said the movement is working with mediators, including the United States, to develop a mutually agreed proposal that ensures Israeli compliance.

According to these sources, Hamas has conveyed to mediators that it has no issue with the number of hostages to be released—whether five or more—or the number of Palestinian prisoners to be freed in exchange.

The core issue, they argued, was that previous offers only proposed releasing hostages in return for a limited ceasefire of no more than 40 days, alongside minor humanitarian aid—without any guarantee of advancing to the next phase of talks or securing a permanent halt to the war.

Hamas, therefore, insisted on clear guarantees for a ceasefire before discussing further details, including extending the first phase of the agreement to allow the entry of heavy equipment, tents, caravans, and construction materials for rebuilding critical infrastructure such as schools and hospitals.

The sources stressed that Hamas has shown maximum flexibility to reach an agreement, but the Israeli position remains the main obstacle.

Hamas leaders have reiterated to mediators that they are not clinging to power and are open to any arrangement that helps rebuild Palestinian national unity.

Sources told Asharq Al-Awsat that Hamas recently did not oppose having a minister from Mohammad Mustafa’s Palestinian government head a proposed Community Support Committee to manage Gaza’s civil affairs.

Under this arrangement, the minister would have a deputy from Gaza, selected through consensus among all Palestinian factions, including Fatah.