Through all its instruments, the EU has been supporting democratic and socio-economic reforms, accompanying the electoral processes, promoting human rights, strengthening civil society actors, enhancing economic and trade integration, improving security and addressing migration.
Since 2011, EU assistance to Tunisia has amounted to €3.4 billion with over €2 billion in grants and €1.4 billion in macro-financial assistance (concessional loans).
EU assistance to Tunisia is currently funded mainly through the Neighbourhood, Development and International Cooperation Instrument-Global Europe (NDICI-GE) for the period 2021-2027. Under NDICI-GE, bilateral assistance is adopted on an annual basis through individual measures, in line with the current EU-Tunisia Strategic Priorities. For the period 2021-2024, the EU’s bilateral assistance to Tunisia under NDICI amounts to €620 million.
The Joint Communication on the renewed partnership with the Southern Neighbourhood is accompanied by an Economic and Investment Plan for the Southern Neighbours to ensure amongst others that the quality of life for people in the region improves and the economic recovery, including following the COVID-19 pandemic, leaves no one behind. The Plan includes 12 preliminary flagship initiatives to strengthen resilience, build prosperity and increase trade and investment to support competitiveness and inclusive growth. Relevant flagships for Tunisia include: (1) support to the conclusion of a Comprehensive Air Transport Agreement with the EU, (2) support to the deployment of social protection systems improving the resilience of vulnerable populations, (3) support to the digitalisation of the economy, (4) support to the rollout of the national water strategy, securing availability and access to water.
Under the NDICI-GE instrument, an increased accent on blending EU grants with loans from European and International Financing Institutions will allow partner countries to unlock a substantial level of concessional funding for investments. EU grants increase the concessional nature of loans from European Financial Institutions and absorb political and economic risks.
The new system of guarantees provided for under the NDICI-GE will give access to additional funds from the crowding-in of both public and private investors. In the framework of the Economic and Investment Plan, over €728 million in grants have been mobilised by the Commission since 2021 for Tunisia under the European Fund for Sustainable Development Plus which are expected to mobilise over EUR 6 billion in investments for programmes on education, water, renewable energy, food security, transport and access to finance for SME. A few examples of projects:
- The improvement of the learning and teaching conditions in schools thanks to the signature in December 2023 of a €25 million grant to leverage an EIB loan of €40 million for a programme worth €65 million, to support 14,500 pupils in primary education with 80 new primary schools and new school transport, and improved digitalization in schools.
- The support to the “ELMED” electricity interconnection project between Tunisia and Italy to boost renewable electricity production in Tunisia and its future export to Europe, with the signature of a €306.7 million grant agreement under the Connecting Europe Facility in August 2023, and the adoption of a €27 million grant in December 2023, to leverage €125 million in loans from the EIB, EBRD and KfW to support the reinforcement of the policy dialogue in the energy sector, and the creation of a new national electricity dispatch centre. The total support of EU and international donors for this project amounts to €1.2 billion.
- The reinforced support to food security with the signature in December 2023 of a €20 million grant to leverage a €150 million loan from the EIB to support the grain purchase, the modernisation of grain storage and transport infrastructure, and the reform of the agricultural sector’s national management. This project is part of an overall programme worth €570 million implemented with other European and international donors (EBRD, World Bank, African Development Bank), in response to Tunisia’s food security crisis generated by Russia’s aggression war against Ukraine since 2022.
In addition to bilateral cooperation, Tunisia is benefiting from regional cooperation programmes under the NDICI-GE since 2021, and previously under the European Neighbourhood Instrument (2014-2020), in the sectors of economic development and business environment; education, training and research; culture and media; migration and asylum; justice, freedom and security; environment, climate change and energy; civil society.