The European Neighbourhood Instrument (ENI) was the key EU financing instrument for bilateral cooperation with Tunisia for the period 2014-2020. Since 2021, the Neighbourhood, Development and International Cooperation Instrument – Global Europe (NDICI - GE) frames the EU’s cooperation. The instrument’s approach includes grant funding, blending grants with loans and budgetary guarantee to mobilize funds through the European Financing Institutions under the European Fund for Sustainable Development (EFSD+).
Under NDICI-GE, bilateral assistance follows multiannual programming through the draft Multiannual Indicative Programme 2021-2027, yet to be adopted for Tunisia, defining the areas of focus for EU assistance, in line with the Strategic Priorities.
For the period 2021-2024, the EU’s bilateral assistance to Tunisia under NDICI amounts to €600 million and should focus on the three following priority sectors:
- Promoting good governance and the rule of law;
- Stimulating a sustainable economic growth generating employment and accompanying the energy transition;
- Reinforcing social cohesion between generations and regions.
From 2011 on, EU assistance to Tunisia increased substantially. Tunisia has been the number one beneficiary of the incentive-based mechanism every year since 2011 following progress in the respect of human rights and the rule of law, and was awarded additional funding worth €90 million in 2020. In 2021-2022, Tunisia benefited from additional €20 million under this mechanism through the EU Food and Resilience Facility for the Southern Neighbours to help Tunisia cope with the consequences on food commodity prices and availability of Russia’s aggression war on Ukraine.
Since 2011, the EU has been giving even greater importance to civil society in the Southern Neighbourhood. In Tunisia, assistance to NGOs was increased and regular consultation fora were established to promote a more structured dialogue between the EU and civil society organisations. Support to civil society has become a key feature of EU cooperation with the country and trilateral consultations (civil society, EU, Government) take place ahead of subcommittee meetings under the EU-Tunisia Association Agreement. In 2022, a new common EU roadmap for the work with civil society in Tunisia was launched based on the successful long-term tripartite dialogue and on country-wide negotiations with civil society organisations and Member States.
Under the EU External Investment Plan and the blending mechanism of the Neighbourhood Investment Platform, Tunisia has benefited from €2.3 billion in blending grants and concessional loans from European Financing Institutions combined with public and private sector financing since 2014. Investments supported projects in numerous sectors such as education, transport, water, renewable energy and urban development. EU grants increase the concessional nature of loans from European Financial Institutions and absorb political and economic risks. Under the new NDICI-GE instrument, an increased accent on blending EU grants with loans from European and International Financing Institutions will allow partner counties to unlock a substantial level of concessional funding for investments. 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.
On 9 February 2021, the European Commission adopted a Joint Communication on the renewed partnership with the Southern Neighbourhood, establishing a new Agenda for the Mediterranean to relaunch and reinforce the EU’s partnership with the region. It will guide EU policy and programming towards the country for the coming years. The Joint Communication 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 Aviation 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.
EU’s bilateral cooperation with Tunisia builds on the main EU policy objectives such as the European Green Deal, the EU Gender Action Plan III and the Global Gateway Strategy.