On Thursday, Italy pledged to make various investments in Tunisia and assist in negotiating a bailout from the International Monetary Fund.

On Thursday, Italian Foreign Minister Antonio Tajani announced a series of investments and support measures for Tunisia, including assistance in negotiating a loan with the International Monetary Fund (IMF) as Italy aims to stabilize the North African country’s economic crisis and address the growing number of migrants arriving in Italy.

During a meeting with Tunisian Foreign Minister Nabil Ammar, Tajani emphasized Italy’s proposal to finance Tunisia through the IMF and provide a second tranche of funding as reforms progress.

The Italian government is also finalizing an agreement to bring 4,000 Tunisian workers to Italy for training, to address unemployment in Tunisia.

The Organization for Economic Cooperation and Development has reported that Tunisia is currently experiencing its worst economic crisis in a generation, with inflation at around 11% and food supplies becoming increasingly scarce.

The government is seeking a $2 billion to $4 billion loan from the IMF to help address the budget deficit resulting from the COVID-19 pandemic and the impact of Russia’s war in Ukraine.

In exchange for the loan, Tunisia will have to undertake painful economic reforms, such as reducing the size of its public administration sector and lifting subsidies gradually, which could lead to mass layoffs and further unemployment. Tajani promised to work with Tunisia during the negotiations with the IMF and reiterated Italy’s proposal for a two-tranche loan delivery that would not be completely dependent on the implementation of all reforms.

Italy views a stable and prosperous Tunisia as crucial, as it has become a major departure point for the increasing number of migrants arriving in Italy. “For us, the fundamental point is to guarantee the stability of Tunisia,” said Tajani.