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.



Hezbollah Says Fired Missiles at Base Near South Israel's Ashdod

Israel’s Iron Dome anti-missile system operates to intercept incoming projectiles, amid hostilities between Hezbollah and Israeli forces, in Nahariya, Israel, November 21, 2024. REUTERS/Thomas Peter
Israel’s Iron Dome anti-missile system operates to intercept incoming projectiles, amid hostilities between Hezbollah and Israeli forces, in Nahariya, Israel, November 21, 2024. REUTERS/Thomas Peter
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Hezbollah Says Fired Missiles at Base Near South Israel's Ashdod

Israel’s Iron Dome anti-missile system operates to intercept incoming projectiles, amid hostilities between Hezbollah and Israeli forces, in Nahariya, Israel, November 21, 2024. REUTERS/Thomas Peter
Israel’s Iron Dome anti-missile system operates to intercept incoming projectiles, amid hostilities between Hezbollah and Israeli forces, in Nahariya, Israel, November 21, 2024. REUTERS/Thomas Peter

Hezbollah said its fighters on Thursday fired missiles at a military base near south Israel’s Ashdod, the first time it has targeted so deep inside Israel in more than a year of hostilities.

Hezbollah fighters "targeted... for the first time, the Hatzor air base" east of the southern city, around 150 kilometers from Lebanon’s southern border with Israel, "with a missile salvo," the Iran-backed group said in a statement.

A rocket fired from Lebanon killed a man and wounded two others in northern Israel on Thursday, according to the Magen David Adom rescue service.
The service said paramedics found the body of the man in his 30s near a playground in the town of Nahariya, near the border with Lebanon, after a rocket attack on Thursday.
Israel meanwhile struck targets in southern Lebanon and several buildings south of Beirut, the Lebanese capital.

Israel has launched airstrikes against Lebanon after Hezbollah began firing rockets, drones and missiles into Israel the day after Hamas' attack on Israel last October. A full-blown war erupted in September after nearly a year of lower-level conflict.
More than 3,500 people have been killed in Lebanon, according to the country’s Health Ministry, and over 1 million people have been displaced. It is not known how many of those killed were Hezbollah fighters and how many were civilians.
On the Israeli side, Hezbollah’s aerial attacks have killed more than 70 people and driven some 60,000 from their homes.