Tunisia: Protests erupt against President’s power grab

Two months after he sacked the prime minister, suspended the parliament and assumed all executive powers, Tunisia’s President Kais Said faced street anger as a protest hit Tunis on Sunday demanding his step-down.

Last week, he published a decree giving him executive powers, in a move his opponent described as a return to authoritarian rule and a setback for democratic achievements.

The presidential decree did not set a deadline for the “exceptional measures” and for the return of constitutional normalcy, but the president said there would be a constitutional amendment further igniting the worries of his political opponent who described the measures as a coup.

Saied’s seizure of power has sidelined Islamists in Parliament but now labor unions and secular critics fear the political uncertainty created by the President will undermine the democratic prospects in the country and worsen Tunisia’s economic conditions.

The President responded however that his actions were needed to help Tunisia overcome “political paralysis” and “economic stagnation.”

Economists fear the power grab will impact Tunisia’s hopes to receive much-needed IMF financing. Tunisia has struggled with endemic unemployment and an economic slow-down worsened by the Covid-19 crisis and pinned hope on a $4 billion loan package from the IMF that is yet to be approved.

The economy shrank 8.5% last year and the government debt will soon hit the 100% threshold putting Tunisia on the brink of default.

With no clear economic plan to deal with the current crisis, Tunisia needs about $5 billion to cover its budget deficit and loan repayments.

Tunisia’s inflation rose to 6% this summer and unemployment to 17.8 percent, and the fiscal deficit deepened to more than 11 percent in 2020.

Without an IMF program or related bilateral and multilateral support, Tunisia’s international reserves “could face material depletion by end-2022,” Bank of America said.

Many fear Tunisia could face a Lebanese default scenario and a devaluation of the currency if no concrete measures were taken in a climate of political and economic uncertainty.