Summary:

On the sidelines of the Francophone Summit, France and Tunisia signed an agreement for $206 million in financing to aid the Tunisian economy. The Tunisian Economic Minister Samer Saied signed the agreement with French Foreign Minister Catherine Colonna, who emphasized the intent of the funds to support the implementation of the reform program that Tunisia has agreed upon with the International Monetary Fund (IMF).

Outlook:  

The deal signed with France is the latest of several financing and development deals prompted by Tunisia’s concession to IMF reform requirements linked to the agreed upon $1.9 billion loan deal. Funding from the African Development Bank, the Arab Development Fund, and the European Union (EU) have reflected the cautious diplomatic messaging around Tunisia’s economic and political reform. While the international community is generally supportive of Tunisia’s movement toward reform, we are closely watching the domestic response, particularly from the country’s powerful labor unions that have committed to spoiling certain aspects of the IMF-recommended reforms. Those reforms that touch the public sector workforce, in particular, have the potential to prompt disruptive demonstrations and labor strikes.