Negotiations between coalition government parties and other major political players to agree on a new document outlining the government’s path forward (the ‘Carthage II Agreement’) stalled in late May over whether to replace Prime Minister Youssef Chahed and reshuffle the cabinet. A faction of the ruling Nidaa Tounes party led by its executive chairman, Hafedh Essebsi (son of Tunisia’s President Beji Caid Essebsi), called for the dismissal of the prime minister, who is also from Nidaa Tounes. Nidaa’s government coalition partner, the Islamist Ennahda, opposed the move.
Insecurity over the government’s future will complicate key economic and security reforms.
The political crisis will deter foreign investment.
Friction between rival Nidaa Tounes factions will weaken popular confidence in politics.
