Tunisia

Tunisia is facing rising economic challenges, including soaring public debt (80% of GDP) and a budget deficit. President Saied’s refusal to implement IMF-defined measures like subsidy cuts has further complicated its situation. Imported inflation and trade deficits have exacerbated the crisis, leading to shortages in essential goods. President Saied has been leveraging the migration issue to secure aid from the EU. However, most of the proposed EUR 1 bln EU aid is tied to IMF agreement terms, currently stalled due to fears of public backlash.