Sousse attack challenges Tunisia subsidy reform

The Islamist attack that claimed 38 lives in Sousse on 26 June will put further strain on the government and a still fragile economy struggling with the implementation of International Monetary Fund (IMF) mandated reforms. A significant element of the measures, and one where Tunisia is showing clear regional leadership, is an ambitious programme aimed at trimming energy subsidies. Tunisia, the one modest success story to emerge from the Arab Spring uprisings that started in Tunis in December 2010, has been quick to grasp the IMF nettle, slashing subsidies for oil, gas and electricity.