The European Business Council for Africa

The European Union continues to implement the Memorandum of Understanding with Tunisia with the disbursement of EUR 150 million in financial support

The European Union maintains its commitment to Tunisia through the disbursement of financial aid in the form of budgetary support worth EUR 150 million under the support programme for macroeconomic reforms by Tunisia(programme d'appui aux réformes macro-économiques de la Tunisie (PARME)) approved by the EU and Tunisia in December 2023.

European Commission President Ursula von der Leyen said: ‘The EU maintains its commitment to Tunisia and disburses EUR 150 million to support economic reforms and financial stability. This is an important step in our common understanding reached last year and a major achievement for our partnership.'

This disbursement is intended to assist Tunisia in stabilising its macroeconomic situation and in its efforts to improve the management of its public finances and business climate. The support strengthens the capacity of the Tunisian State to ensure stable and inclusive growth, and confirms the EU's commitment to supporting the country on its path to economic reform within the current socio-economic context.

The support from the EU is part of the implementation of the Memorandum of Understanding on a strategic and global partnership, signed by the two parties on 16 July 2023 in Tunis, and in particular contributes to its first pillar on macroeconomic stability.

Background

This programme involves EUR 150 million of budgetary support, which consists of a direct financial transfer from the European Union to the Tunisian State Treasury in the form of a grant. Budget support disbursements are made on the basis of actual progress in implementing structural reforms initiated by Tunisia.

This disbursement comes after the adoption of the financing decision for the programme by the Commission on 20 December 2023. The support reflects the commitment of the EU and Tunisia to work together in formulating and implementing the various work streams agreed in the Memorandum of Understanding and its five pillars: macroeconomic stability, economy and trade, the green energy transition, people-to-people contacts, and migration and mobility.

 

Source: European Commission