Tunisia: G7 Calls for IMF Deal, But Not on Italian Terms

by | May 22, 2023 | Diplomacy, Economic, Tunisia

Summary:

At the 49th G7 summit held 19 – 21 May 2023 in Hiroshima, Japan, Tunisia featured as a point of discussion as the European powers France and Italy continue to seek solutions to the irregular migration challenge.

The G7 members ultimately issued a statement on the situation in Tunisia, affirming the group’s collective “support for maintenance of stability and prosperity.” The statement urged the Tunisian government to “respond to the democratic aspirations of its population, to improve the economic situation of the country, and to reach an agreement with the IMF.” 

During the summit, Italian Prime Minister Giorgia Meloni and French President Emanuel Macron appeared to reconcile after comments from a French official that accused Meloni of failing to fulfill her mandate from voters to address the irregular migration issue.

After the G7 summit, Italian Foreign Minister Antonio Tajani indicated his approval of how the conversation among European countries is progressing regarding irregular migration. His comments came following a European Foreign Affairs Council meeting in Brussels. He marked progress among European countries, but cited the urgent need to address the flow of migrants through the Tunisian city of Sfax.

Outlook:  

The G7 statement echoes the broad consensus among western countries that democratic norms and pursuit of the agreed-upon loan framework with the IMF will lead to Tunisia’s economic recovery and stability.

The statement did not provide more specific recommendations and appears to have fallen short of Italy’s desired outcome of encouraging greater flexibility in the IMF agreement, perhaps even releasing an initial loan not tied to any specific economic reforms.

Despite the statement, the Tunisian government appears to have found an unexpectedly strong negotiating position as the IMF delays in implementing the loan agreement have only increased Italy’s calls to release funds without demonstrable reform.


 

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