Saturday, November 4, 2023

EU Offers Financial Aid to Tunisia: Why?

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EU Offers Tunisia Over 1 Billion Euros in Aid Package

The European Union (EU) has announced a potential aid package worth over 1 billion euros ($1.07 billion) for Tunisia, with the majority of the funds designated as “macro-financial assistance” to rescue the country’s faltering economy. The package was announced during EU Commission President Ursula von der Leyen’s visit to Tunisia with Italian and Dutch Prime Ministers Giorgia Meloni and Mark Rutte. The EU aims to stem the flow of refugees from sub-Saharan African countries attempting to reach the Italian coast.

What is included in the package?

The proposed aid package includes 900 million euros ($967m) in “macro-financial assistance” to rescue Tunisia’s state finances, as well as an immediate 150 million euros ($161m) to support a reform agenda set by the International Monetary Fund (IMF). The EU has also offered a further 105 million euros ($113m) for border management, search and rescue operations, and anti-smuggling initiatives.

What is the state of Tunisia’s economy?

Tunisia has suffered more than a decade of economic stagnation since the 2011 revolt that overthrew longtime ruler Zine El Abidine Ben Ali. The financial crisis has been marked by chronic shortages of basic foods, with inflation reaching 10 percent in May and unemployment rising to 16.1 percent in the first quarter of 2023. The country’s debt is estimated to be about 80 percent of its gross domestic product. In October, Tunisia reached an agreement in principle for nearly $2bn in help from the IMF, but discussions on the aid package have since stalled.

Why does the EU want the deal?

The EU, particularly Italy, has been seeking to reduce the number of people fleeing conflict and poverty in Africa and the Middle East in the hopes of finding safety and a future in Europe. The EU border agency, Frontex, has observed a significant shift in migration patterns in 2023, with a 292 percent increase in attempted crossings from Tunisia compared to last year. Italy is the destination for most of the departures from Tunisia, and blocking this route has been a priority for Italy’s far-right leader.

Do the people leaving Tunisia get to Europe?

In recent months, the Tunisian coastguard has registered an unprecedented number of refugee bodies washing up on the country’s shores. Last week, the coastguard recovered nine bodies and rescued 29 people whose boats sank off the coastal city of Monastir as they tried to reach Italy. In March, 29 people died trying to cross to Italy from Sfax, a city on the Tunisian coast and a major departure point for refugees. In April, the coast guard said 210 bodies had washed up on the nation’s coastline in less than two weeks. Most of the asylum seekers hail from sub-Saharan Africa.

Are these asylum seekers treated well in Tunisia?

Tunisian President Kais Saied has stoked anti-foreigner sentiment in Tunisia in recent months. In February, he urged security forces to take action against people from sub-Saharan Africa, saying they threatened to “change the demographic make-up” and turn Tunisia into “just another African country that doesn’t belong to the Arab and Islamic nations anymore”. After this speech, police detained hundreds of people in a wide-scale crackdown, and racist attacks increased dramatically across the country.

In conclusion, the EU’s proposed aid package for Tunisia aims to rescue the country’s faltering economy and reduce the number of refugees attempting to reach Europe. However, it remains to be seen whether the aid will be sufficient to address Tunisia’s economic challenges and whether it will help reduce the number of refugees leaving the country. Additionally, concerns remain about the treatment of asylum seekers in Tunisia, particularly given President Saied’s recent anti-foreigner sentiment.

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