Bloomberg
Tunisia’s prime minister-designate unveiled a new cabinet that keeps holdovers from the old government in key security posts while bringing in new faces to try to revive the
economy.
Youssef Al-Shahed’s appointments followed more than two weeks of consultations since parliament dismissed his predecessor, Habib Essid, over the country’s weak economic performance.
Shahed retained seven key ministers from Essid’s cabinet, including defense and interior, as the country continues to struggle with fallout from last year’s militant attacks and spillover from the war in neighboring Libya. Lamia Zribi, a former business development official, will be the nation’s first woman finance minister.
Although Tunisia has avoided much of the unrest that hit neighboring countries since it sparked upheavals in Arab nations in 2011, its embrace of democratic policies hasn’t brought it economic growth. Unemployment is a high 15 percent, especially among young people, as economic reforms proceed slowly and tourism and foreign investment suffer from militant attacks that killed dozens last year.
Al-Shahed, at a news conference Saturday, said his government’s priorities would be fighting terrorism and corruption, economic development, and the empowerment of women and youth.
Six Women
He named six women to the 26-member cabinet, including Zribi, 55, who worked in the Ministry for Development and Investment and as a director of Tunisia’s state bank for small and medium enterprises. Five of the new cabinet members are under the age of 35.
The priorities reflect concerns the International Monetary Fund wants Tunisia to address in return for the $2.9 billion loan approved in June. Under a five-year economic reform program that runs to 2020, Tunisia has pledged to bring down public debt to 50 percent of gross domestic product compared to an estimated
54 percent in 2015, according to
the fund.
It’s also promised to offer greater exchange rate flexibility, restructure public banks to improve financial sector intermediation, reduce energy subsidies, implement a more progressive tax system and reform state-owned bodies.
The ability to push through this overhaul hinges on the government’s ability to transcend partisan politics that have been at least partly to blame for earlier failures.
Tunisia’s economy grew 1.4 percent in the second quarter of 2016 compared to 1.1 percent in the same period a year ago, according to government figures.
The IMF projects Tunisia’s GDP
will grow 2 percent in 2016 and 3 percent the following year, with
the implementation of the reform program.
Critics of the Essid government have blamed Al-Shahed’s influential Nidaa Tounes party and the moderate Islamist Ennahda for focusing more on retaining power than on change.