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.



Lebanon State Media Says Israel Blows Up Houses on Border

This handout satellite picture provided by Planet Labs PBC and dated October 24, 2024 shows a view of the village of the southern Lebanese village of Mais al-Jabal on the border with Israel, amid the ongoing war between Hezbollah and Israel. (Photo by Planet Labs PBC / AFP)
This handout satellite picture provided by Planet Labs PBC and dated October 24, 2024 shows a view of the village of the southern Lebanese village of Mais al-Jabal on the border with Israel, amid the ongoing war between Hezbollah and Israel. (Photo by Planet Labs PBC / AFP)
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Lebanon State Media Says Israel Blows Up Houses on Border

This handout satellite picture provided by Planet Labs PBC and dated October 24, 2024 shows a view of the village of the southern Lebanese village of Mais al-Jabal on the border with Israel, amid the ongoing war between Hezbollah and Israel. (Photo by Planet Labs PBC / AFP)
This handout satellite picture provided by Planet Labs PBC and dated October 24, 2024 shows a view of the village of the southern Lebanese village of Mais al-Jabal on the border with Israel, amid the ongoing war between Hezbollah and Israel. (Photo by Planet Labs PBC / AFP)

Lebanese state media said the Israeli army on Friday detonated explosives planted inside houses in three border villages that have been battered by the Israel-Hezbollah war.

Hezbollah says it is engaged in fighting Israeli forces in the area, more than a month into an Israeli ground invasion aimed at pushing the Iran-backed group away from the border.

"Since this morning, the Israeli enemy's army has been carrying out bombing operations inside the villages of Yaroun, Aitaroun and Maroun al-Ras in the Bint Jbeil area, with the aim of destroying residential homes there," the official National News Agency said.

Israeli forces also conducted a raid in the nearby town of Bint Jbeil, NNA said, after Hezbollah said it targeted Israeli troops in the flashpoint border region, AFP reported.

Hezbollah said on Thursday it had "ambushed" Israeli ground forces attempting to infiltrate Yaroun.

The group has claimed eight operations since Wednesday targeting Israeli troops on the outskirts of Maroun al-Ras.

Friday's explosions are the latest in a string of similar incidents that have impacted the border area.

According to NNA, Israeli troops blew up buildings in at least seven border villages last month.

Footage verified by AFP on Monday showed massive blasts that ripped through Mais al-Jabal and reduced homes to rubble.

Israel's Channel 12 last month broadcast footage appearing to show one of its presenters blow up a building while embedded with soldiers in the village of Aita al-Shaab.