The European Commission on Friday threw a lifeline to Tunisia's jihadist-hit economy with a proposed 500 million euro ($560 million) financial aid package. The commission said the funds, requested by Tunisia, would take the form of medium-term loans at favourable financing conditions". "The recent terrorist attacks have exacerbated an already vulnerable balance of payments and fiscal position, creating important financing needs," EU economic affairs commissioner Pierre Moscovici was quoted as saying in a statement.
"More than ever, it is of utmost importance that Tunisia remains an example to the region," he said. Tunisia, which saw the overthrow of dictator Zine El Abidine Ben Ali during the 2011 "Arab Spring, lost more than a third of its tourism revenues last year after attacks by the Islamic State jihadist group, official figures showed last month. Two IS attacks last year killed 59 foreign tourists, badly shaking an industry that accounts for seven percent of the country's GDP. Fresh protests over unemployment and poverty in central Tunisia have also raised fears of growing social unrest five years after the country's revolution was ignited by similar grievances. The package proposed by the commission, the executive arm of the EU, is subject to approval by the European Parliament.