EU plans aid package for crisis-hit Tunisia

The European Union on Sunday proposed substantial financial assistance to crisis-stricken Tunisia, aiming to bolster its economy and decrease the influx of irregular migrants across the Mediterranean Sea.

The EU is prepared to provide Tunisia with a 900-million-euro ($967 million) package, in addition to 150 million euros in immediate aid, said European Commission President Ursula von der Leyen, during a joint visit to Tunisia with Dutch Prime Minister Mark Rutte and Italian Prime Minister Giorgia Meloni.

The trio held talks with Tunisia's President Kais Saied that focused on facilitating the path for an international bailout, and reestablishing stability in a nation that has emerged as a leading contributor to migration to Europe.

Apart from trade and investment, the EU would also assist Tunisia in managing its borders and combatting human trafficking, providing support worth 100 million euros this year, von der Leyen added in a news briefing given after the talks.

"We both have a vast interest in breaking the cynical business model of smugglers and traffickers," said von der Leyen. "It is horrible to see how they deliberately risk human lives for profit."

She stated that additional EU projects would provide a high-speed broadband cable link and enable Tunisia to export renewable energy to the EU, all with the objective of generating jobs and stimulating growth in Tunisia.

More than 53,800 migrants have arrived in Italy via the Mediterranean Sea since the start of the year, an increase from 21,700 during the same period last year, according to data from the Italian Interior Ministry.

Meloni stated on Sunday that the EU and Tunisia had already signed a joint declaration, which she praised as a significant step "toward the establishment of a genuine partnership", reported Reuters news agency.

She emphasized that there was "a crucial window of opportunity "to secure the aid agreement before the European Council convenes at the end of June.

The Tunisian president has been hesitating in accepting the conditions for $1.9 billion in delayed International Monetary Fund assistance, which potentially involves reducing subsidies for fl our and fuel, trimming the public administration sector, and privatizing unprofitable public enterprises, reported the Associated Press news service.

It noted that Saied is wary such actions could spark social turmoil, and he is reportedly resistant to what he refers to as Western "diktats".

Tunisia's leader said on Saturday that his nation would not be willing to act as a "border guard" for the EU, or protect the boundaries of other nations.

However, Tunisia's economy is on the brink of collapse, and the populace is said to have become disenchanted with Saied's leadership, noted AP.

On Friday, credit ratings agency Fitch further downgraded Tunisian debt into "junk" status, highlighting the potential for the country to default on loans, which could result in a collapse of state finances and lead to widespread hardship, reported Reuters.