Decision (EU) 2016/1112 providing further macro-financial assistance to Tunisia

What it is

to providing further macro-financial assistance to Tunisia in order to strengthen its economy and implement a structural reform programme. PROPOSED ACT: Decision of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: Tunisia was the first Mediterranean country to sign an Association Agreement with the EU on 17 July 1995, which came into force on 1 March 1998. The Committee on International Trade adopted the report by Marielle DE SARNEZ (EPP, FR) on the proposal for a decision of the European Parliament and of the Council providing further macro-financial assistance to Tunisia. The committee recomended that the European Parliament should adopt its position at first reading taking over the Commission proposal. To recall, the proposal seeks to provide further macro-financial assistance to Tunisia which is currently going through very great difficulties. Despite all these challenges, Tunisia continues to make very significant progress, firmly establishing democratic transition in the country, carrying out the reforms needed to modernise its economy and bolstering its relations with its partners, in particular the European Union, with which it is currently negotiating a free-trade agreement. This is why Members support the proposal for a second MFA programme for Tunisia, totalling EUR 500 million, which will be granted in the form of medium-term financial-market loans on advantageous conditions. This assistance programme will back up the efforts made by Tunisia to improve its budgetary position and balance of payments and bring about a climate more conducive to investment. Members fully endorse this proposal. The European Parliament adopted by 561 votes to 76, with 42 abstentions, a legislative resolution on the proposal for a decision of the European Parliament and of the Council providing further macro-financial assistance to Tunisia. Parliament adopted its position at first reading taking over the Commission proposal . To recall, the text seeks to propose further macro-financial assistance of EUR 500 million to Tunisia in the form of a loan. This assistance programme aims to support reforms undertaken by Tunisia to overcome its difficult economic and balance of payments situation and to create a more favourable climate to promote investment. PURPOSE: to provide macro-financial assistance to Tunisia in order to support economic stabilisation of the country and its structural reform agenda, and thus to contribute to its external financing needs. LEGISLATIVE ACT: Decision (EU) 2016/1112 of the European Parliament and of the Council providing further macro-financial assistance to Tunisia. CONTENT: by this Decision, the Union makes macro-financial assistance of a maximum amount of EUR 500 million available to Tunisia , with a view to supporting Tunisia's economic stabilisation and a substantive reform agenda. The assistance shall contribute to covering Tunisia's balance of payments needs as identified in the International Monetary Fund (IMF) programme. Together with persistent…

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