European leaders pledged support for Tunisia in the latest bid to break the deadlock surrounding an International Monetary Fund rescue package, amid concerns that the North African nation’s deepening economic woes will spur more migration across the Mediterranean.
(Bloomberg) —
European leaders pledged support for Tunisia in the latest bid to break the deadlock surrounding an International Monetary Fund rescue package, amid concerns that the North African nation’s deepening economic woes will spur more migration across the Mediterranean.
Italian Prime Minister Giorgia Meloni, her Dutch counterpart Mark Rutte and European Commission President Ursula von der Leyen used their joint trip Sunday to unveil a cooperation package covering energy, trade and migration as well as economic assistance. But von der Leyen indicated rescue funds would have to wait for an IMF deal.
“The European Commission is considering macro-financial assistance as soon as the necessary agreement is found, and we are ready to mobilize up to €900 million ($967 million) for this purpose,” she said in Tunis. As an immediate step, the European Union could provide “an additional up to €150 million in budget support right now,” she added.
Facing a looming funding gap and sporadic bread shortages, Tunisia was downgraded further into junk territory by Fitch Ratings on Friday. The country initially agreed to a $1.9 billion IMF deal last year but hasn’t yet finished enacting the economic measures, including potentially painful spending cuts, necessary for a sign-off. President Kais Saied’s criticism of foreign “diktats” about the economy have also raised questions over Tunisia’s commitment.
Meloni, who was in the capital Tunis less than a week ago, has pledged Italian support for Tunisia in ongoing IMF talks. Sunday’s trip sought to raise discussions on Tunisia’s path to “the European level” and see off “a domino effect of further problems,” she told reporters June 8, according to Italian news agency ANSA.
“What was adopted today is an important first step toward creating a true partnership that can address the migration crisis as well as development for both sides of Mediterranean area in an integrated way,” Meloni said Sunday, standing alongside von der Leyen and Rutte, after meeting Tunisian officials.
Von der Leyen added that energy “is a win-win area,” as Tunisia is looking to harness “its tremendous potential of renewable energy and the European Union needs reliable suppliers of clean energy.”
Read More: Understanding the Unraveling of Tunisia’s Revolution: QuickTake
The birthplace of the 2011 Arab Spring revolts, Tunisia has been a major staging point for illicit and risky crossings of the Mediterranean, both by Tunisians and others from the African continent. Stemming those arrivals has been a key pledge for the new right-wing premier of Italy, which has seen the numbers of people seeking asylum surge since the pandemic.
Italy had 77,195 asylum requests last year, compared to 45,200 in 2021 and 21,330 in 2020, according to Eurostat data.
The country is “optimistic” about seeing “fewer arrivals on its shores this summer,” Interior Minister Matteo Piantedosi said in an interview with Il Messaggero newspaper on Sunday. He also urged the EU to provide the €900 million in financing for Tunisia now, rather than waiting for the IMF deal to be approved.
Saied, who’s accused by opponents of trying to return his nation to one-man rule after assuming greater powers in 2021, on Saturday commented on the migration issue, warning that “Tunisia will not play the role of guardian for other countries,” the state-run TAP news agency reported.
–With assistance from Souhail Karam and Chiara Albanese.
(Updates with von der Leyen, Meloni quotes starting from third paragraph)
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