Tunisian Govt, Unions Agree to Talks on IMF Economic Reforms

Noureddine Taboubi, secretary general of the Tunisian General Labor Union (UGTT) speaks to supporters of the union during a national public strike called by them, outside their headquarters in Tunis, Tunisia June 16, 2022. REUTERS/Jihed Abidellaoui/File Photo
Noureddine Taboubi, secretary general of the Tunisian General Labor Union (UGTT) speaks to supporters of the union during a national public strike called by them, outside their headquarters in Tunis, Tunisia June 16, 2022. REUTERS/Jihed Abidellaoui/File Photo
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Tunisian Govt, Unions Agree to Talks on IMF Economic Reforms

Noureddine Taboubi, secretary general of the Tunisian General Labor Union (UGTT) speaks to supporters of the union during a national public strike called by them, outside their headquarters in Tunis, Tunisia June 16, 2022. REUTERS/Jihed Abidellaoui/File Photo
Noureddine Taboubi, secretary general of the Tunisian General Labor Union (UGTT) speaks to supporters of the union during a national public strike called by them, outside their headquarters in Tunis, Tunisia June 16, 2022. REUTERS/Jihed Abidellaoui/File Photo

Tunisia's government and both its main labor and commerce unions agreed on Friday to start talks on Monday over economic reforms required by the International Monetary Fund (IMF) for a rescue program.

State news agency TAP reported that Prime Minister Najla Bouden, UGTT labor union chief Noureddine Taboubi and UTICA commerce union chief Samir Majoul had agreed a "social contract" to tackle national challenges, citing a government statement.

The labor union, which represents a vast syndicate of workers, has been a staunch critic of IMF economic reforms proposed by the government, including subsidy cuts, a public sector wage freeze and the restructuring of state-owned companies. It previously said, such reforms would increase the suffering of Tunisians and lead to an imminent social implosion.

Tunisia is seeking $4 billion in IMF support amid the economic fallout from the coronavirus pandemic and the war in Ukraine, though diplomat sources told Reuters any IMF program approved would be unlikely to reach that level.

The IMF wants the UGTT, a powerful union that has a million members and has previously paralyzed parts of the economy in protest, to formally agree to government reforms.

Efforts to secure the IMF bailout have been complicated by Tunisia's political upheavals since President Kais Saied seized most powers a year ago, shutting down parliament and moving to rule by decree.

Last month, he pushed through a new constitution formalizing many of the expanded powers he has assumed in a referendum. Official figures showed that 31% of Tunisians took part, but opposition groups have rejected the figure, calling it inflated.



Gold Set for Weekly Drop; Traders Await US Inflation Data

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Set for Weekly Drop; Traders Await US Inflation Data

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices rose on Friday, but were set for a weekly decline after the Federal Reserve signalled a slowdown in rate cuts next year, while focus shifted to a key US inflation print due later in the day.
Spot gold was up 0.5% at $2,606.19 per ounce, as of 0821 GMT, but has lost about 1.5% so far this week.
US gold futures was 0.5% higher at $2,620.60, Reuters said.
Gold is consolidating as "investors await Trump to resume office next year and the Fed will also go meeting by meeting, considering the data development and seeing what is part of Trump's trade policy," said Soni Kumari, a commodity strategist at ANZ.
Investors now await the core Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation measure, for further clues on the US economic outlook.
The Fed cut rates by 25 basis points on Wednesday, but the cautious note struck in its economic projections and expected slowdown of rate cuts pushed gold to its lowest level since Nov. 18.
Data showed on Thursday that the US economy grew faster than expected in the third quarter, while jobless claims also slipped more than anticipated, reinforcing expectations that the central bank will take a cautious approach to policy easing.
A slightly more hawkish set of the Fed's regional bank presidents will become voters on its rate-setting panel in 2025, raising the chance that any further rate cuts next year could spur more dissents like the one seen from the head of the Cleveland Fed.
Higher rates dull the appeal of the non-yielding asset.
According to Reuters technical analyst Wang Tao, spot gold may retest support at $2,582 per ounce.
Spot silver gained 0.1% to $29.06 per ounce but was headed for its worst week since April.
Platinum dropped 0.2% at $921.50 and palladium rose 0.5% to $910.63. Both the metals were poised for weekly losses.