EU and Tunisia sign 'strategic' agreement on migration, economy and renewable energy

(Patria) - The European Union and Tunisia signed on Sunday a memorandum of understanding for a "strategic and comprehensive partnership" on irregular migration, economic development and renewable energy, AFP reported.

The deal, which includes financial aid, comes at a time when Tunisia has been under fire for its treatment of migrants since February, after President Kais Saied accused "hordes" of migrants from sub-Saharan African countries of a "conspiracy" to change the country's demographic composition.

Tunisia, a key route for migrants trying to reach Europe, has since seen a rise in racially motivated attacks. Tensions peaked after a Tunisian was killed on July 3 in a clash between locals and migrants in the city of Sfax. Since then, hundreds of migrants have left their homes in Tunisia or have been forcibly evicted and expelled to desert areas along the border with Algeria and Libya, left to fend for themselves in extreme heat.

Speaking at the presidential palace in Tunis, European Commission President Ursula von der Leyen said Sunday's agreement aims to "invest in shared prosperity."

"We need effective cooperation, more than ever" on migration, von der Leyen said, announcing greater cooperation against "smuggling and human trafficking networks" and in search and rescue operations.

She was joined by Italian Prime Minister Giorgia Meloni and her Dutch counterpart Mark Rutte, who were all in Tunisia in June for talks on ways to curb irregular migration. Meloni welcomed a "new and important step in addressing the migration crisis" and invited Saied to an international conference on migration on July 23. Rutte said both the EU and the "people of Tunisia" would benefit from the agreement, stressing that the EU is Tunisia's largest trading partner.

The agreement covers financial aid for schools in Tunisia and renewable energy initiatives. Von der Leyen offered Tunisia 105 million euros in June to support measures to curb irregular migration and 150 million euros in immediate support, as well as a long-term loan of around 900 million euros. But the long-term loan would depend on approval of a nearly $2 billion loan currently with the International Monetary Fund, which has stalled due to differences with Saied, who has assumed near-total executive powers since 2021. Von der Leyen said the EU remains "ready to support Tunisia" and secure funds "as soon as the necessary conditions are met."

Saied has repeatedly rejected what he calls the "dictates" of the IMF before the loan is approved, even as the country struggles with inflation and debt estimated at around 80 percent of its gross domestic product. On Sunday, Saied reiterated his rejection of IMF demands to lift subsidies on basic goods and services, such as fuel and electricity, as well as restructuring 100 state-owned companies.

"We must find ways to cooperate outside the framework of monetary institutions established after World War II," Saied said.