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Tunisia-EU economic links to prevail over political tensions

Cargo ships unload imported goods in the Tunisian port city of Rades on November 12, 2014. The World Bank said in a report published last September that Tunisia's economic model of manufacturing for exports and protecting the domestic market was valid in the 1970s but since then had hindered progress. AFP PHOTO / FETHI BELAID (Photo credit should read FETHI BELAID/AFP via Getty Images)
To:

Al-Monitor Pro Members

From:

Francisco Serrano

Journalist and analyst specialized in North Africa

Date:

Nov. 15, 2023

Bottom Line:

Tunisia rejected last month a $65 million grant from the European Union (EU), reportedly sending back the money after EU authorities had already transferred it. The package was meant to be part of a broader European assistance program that could potentially surpass $1.1 billion. Tunisia’s refusal triggered surprise, especially given its ongoing economic and budgetary crises. The country has continued to reject an IMF support program worth $1.9 billion and the conditions attached to it, and this has discouraged broader multilateral support from flowing into Tunisia. But EU authorities fear that an economic collapse will drive mass migration from Tunisia to European shores. In the short term, political tensions will make economic and diplomatic cooperation more challenging but will not deter trade or slow down ongoing economic integration.