Tunisia will cut its public sector wage bill and replace subsidies with direct support for the needy, according to a government reform proposal written to support talks with the International Monetary Fund and seen by Reuters.
The proposal, shown to Reuters by a government source, envisages eliminating all general subsidies by 2024 and cutting the wage bill to 15 per cent of GDP by 2022 from 17.4 per cent last year, partly through early retirement and reductions in working hours.
A Tunisian government delegation led by the finance minister is starting talks with the IMF this week and will seek $4 billion in loans, Prime Minister Hichem Mechichi told Reuters last week.
The IMF has previously called on Tunisia to enact economic reforms to reduce chronic fiscal deficits and a large public sector debt, including by cutting its wage bill, subsidies and transfers to state-owned companies.
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Spending cuts are highly sensitive in the young democracy, where growing frustration over the economy and poor public services fuelled protests in January, and where powerful labour unions seek to protect workers' pay.
The reform proposal says the government aims to implement the changes in order to restore "economic equilibrium" and adds that it seeks to do so "without social costs".
The reforms are broadly in line with ideas laid out by Finance Minister Ali Kooli in an interview with Reuters in January.
The proposals to cut the wage bill specify encouraging voluntary redundancy on 25 per cent pay, early retirement packages and offering staff part-time work at 50 per cent of full pay.
The plan says it is "essential to rethink the pay system in consultation with social partners", a reference to the labour unions, particularly by establishing rules for salary increases and bonuses that reflect both inflation and performance.
Last week the biggest union, UGTT, which has more than a million members, called for new negotiations on public sector pay.
It signed a general agreement with the government last month on economic reform that was seen as a necessary precursor to talks with the IMF, which are expected to last several weeks.
The proposal to cut subsidies would involve first phasing out food subsidies and then gradually ending subsidies for electricity and petrol, the document showed.
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Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.
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Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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West Asia Premiership: Winners – Bahrain; Runners-up – Dubai Exiles
UAE Premiership: Winners – Abu Dhabi Harlequins; Runners-up – Jebel Ali Dragons
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Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
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TOURNAMENT INFO
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