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Italy: Tunisia, A Rising Investment Destination

The international financial stage is seeing a fundamental change in financial data and a major shift in existing economic blocs, together with the emergence of new economic blocs and the potential disintegration of major economic powers and even major economic unions such as the European Union are not immune to financial collapse.

In light of these changes, the January 2011 revolution in Tunisia and the neighbouring conflicts in Iraq, Syria and Libya, there has been a radical change of economic policy of the Tunisian state. The impact of previous detrimental factors has negatively affected the economic capacity of the Tunisia creating a knock-on effect of a large number of smuggling operations and the doubling of tax evasion not forgetting the decline in the value of the Tunisian dinar compared to the euro and the dollar.

Faced with the impact on the Tunisian economy it now becomes imperative to re-build trust and confidence in Tunisia and reverse the adverse perception to kick-start an economic revival.  The relationship between the ethical and material elements has emerged at various levels, however, what brings all these levels together is the legal legislative dimension whereby legislative intervention can be used to re-launch Tunisia as an important investment destination.

The steps taken focussed on improving the Tunisian Constitution, following the 2011 revolution, a new constitution was created in 2014 through the democratically elected parliament and was particularly drafted to demonstrate Tunisia’s desire to appear as a country wishing to be seen as an active contributor to the international economic activity.  It emphasises the objective of driving out the fraud and tax evasion   –  Article 10 “The State shall establish mechanisms to ensure the extraction of tax and the resistance to evasion and criminal fraud.

The State shall ensure the proper conduct of public funds and shall take the necessary measures to discharge it in accordance with the priorities of the national economy and shall endeavor to prevent corruption and all that may prejudice national sovereignty. ”  Additionally, the new constitution makes provision for international investment and agreements in Article 13 of the constitution – Article 13 “The investment contracts related to natural resources shall be submitted to a specialised committee of the People’s Assembly and shall submit the agreements to be approved by the Council.”

Tunisia has also chosen to support the element of confidence in a legislative initiative such as Chapter 32 of the Constitution:”The State guarantees the right to information and the right to access information.”  The Constitution also provides an important place for investment contracts and agreements concluded in Article 13 of the Constitution:”The investment contracts related to natural resources shall be submitted to a specialised committee of the People’s Assembly and shall submit the Agreements to be approved by the Council.”

In addition, the third aspect of the State reforms, namely the executive and judicial branches, is an attempt to achieve transparency and confidence by achieving legal stability of State institutions which is manifested by supporting freedom of opinion and expression and transparent fair elections every five years.

Tunisia is rising from the difficulties imposed by both internal and external events which have hampered the growth and prosperity of the country.  There are other factors that are being progressed by the Tunisia authorities and the commercial sector to attract investment and reinstate Tunisia as a destination for business enterprise.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

TunisianMonitorOnline (mondaq)

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