Khalil Laabidi: 2025 Finance Law Must Address International Complexity
Khalil Laabidi, Senior Advisor and Expert in Taxation and Business Development, stated during Deloitte's Presentation of the 2025 Finance Law that the law cannot ignore the complicated international context.
This international context has been marked by the euro's decline against the dollar, resulting from Europe's more restrictive policies compared to the United States. It's essential to remember that the dollar tends to perform better during crisis periods, as it is considered a safe-haven currency. For Tunisia, 80% of our exchanges are in euros, so the euro's decline will give us a competitive edge in the market. However, when it comes to purchasing raw materials and energy, we will lose this competitive edge, as we buy in dollars.
The international context is further complicated by the persistent weakness of European indicators, our main partner, supplier, client, and lender. Europe is struggling in all areas. Additionally, this difficult context is accompanied by climate threats, China's real estate crisis, high and prolonged interest rates, wars, and a new pandemic outbreak in China, as well as Trump's potential return to the White House.
In the 2025 Finance Law, we observe that our budget in this international context relies on three pillars, according to Khalil Laabidi:
Strengthening State Resources and Reducing Debt
The state has shown a strong preference for internal borrowing over external borrowing, with significant achievements in this area. This year is crucial, marking a turning point. Internationally, the signal has been perceived, and our sovereign rating has been affected. This is not a growth effect; our economy has proven to be resilient, thanks to diversification, two good agricultural seasons, foreign remittances, and an exceptional tourist season.
Accelerating Public and Private Projects
This is the most critical point, as the recovery of a country's growth depends on the recovery of public investments, confirmed by several theories, including Keynesian theory: every dollar invested by the state induces a $10 expenditure in the private sector. When the state takes the lead and starts investing in deep-sea ports, airports, infrastructure, and equipment, the private sector can follow. If the state doesn't move, the private sector cannot advance.
Improving Public Governance and Addressing Climate Challenges
In terms of public governance, the state is preparing a transversal law with significant changes to the management of public enterprises, exchange rates, institutions, and banks. The state will consult experts and the private sector to discuss this issue. Furthermore, we should expect a transversal law every two years, as we can no longer have a 5-year plan, given the rapid pace of change in the world. Reform and updates must be continuous to better adapt to the changing world.
