BEN ALI'S INDEPENDENCE DAY SPEECH FOCUSES ON

C O N F I D E N T I A L TUNIS 000666 SIPDIS SIPDIS STATE FOR EB AND NEA/MAG - LAWRENCE COMMERCE FOR ITA/MAC/ONE (ROTH) AND CLDP (TEJTEL) PASS TO USTR (D.BELL) PASS TO USPTO (M.ADLIN) CASABLANCA FOR FCS (R.ORTIZ) E.O. 12958: DECL: 03/20/2016 TAGS: PGOV ECON ELAB KDEM PREL TS SUBJECT: BEN ALI'S INDEPENDENCE DAY SPEECH FOCUSES ON ECONOMIC DEVELOPMENT REF: A. TUNIS 645 ¶B. TUNIS 622 Classified By: AMBASSADOR WILLIAM HUDSON FOR REASONS 1.4 (b) AND (d) ¶1. (SBU) SUMMARY: On the occasion of the fiftieth anniversary of Tunisia's independence, President Ben Ali delivered a major speech that outlined Tunisia's achievements and set clear and lofty goals for economic achievement in the next ten years. In addition to several new tax proposals, Ben Ali highlighted ten year plans to increase employment and per capita income. Ben Ali also noted political, social and economic achievements that have been made under his leadership. END SUMMARY. ¶2. (U) Cities around the country were adorned with Tunisian flags and banners celebrating the fiftieth anniversary of Tunisia's independence from France on March 20, 1956. President Zine el Abidine Ben Ali, accompanied by his wife, Leila, presided over a number of celebrations around the country to commemorate the event. On March 19, Ben Ali visited the grave of Tunisia's first president, Habib Bourguiba, in Monastir. On March 21, Ben Ali invited heads of the diplomatic corps to a large parade outside of Tunis that included a military review and a commemoration of Tunisian history. These events were capped by a March 20 Presidential speech to a large group of politicians and citizens in a stadium in the southern Tunis suburb of Rades. ¶3. (SBU) While addressing the wide range of Tunisia's political, social and economic achievements since independence, the President's speech focused on economic goals - particularly employment - through 2016. Ben Ali began by announcing, "We have set for our country an ambitious objective...joining the ranks of developed countries." Ben Ali said he would aim to double per capita income by 2016 and reduce unemployment from its current official level of fourteen percent to ten percent by 2010. Ben Ali also sought to allay those who fear privatization will lead to increased unemployment by stressing his commitment to the protection of labor rights. He also announced a series of changes to tax policies, including those that target companies and private citizens. The corporate tax rate will be decreased from 35 to 30 percent and the value-added tax on certain goods will be eliminated. Ben Ali also announced a general fiscal amnesty that will cancel tax fines and interest accrued under TD 100 (USD 75) and a fifty percent reduction for higher amounts. (NOTE: As few private Tunisians pay income taxes, many are in arrears and could benefit from this amnesty. END NOTE.) ¶4. (SBU) Ben Ali also used the speech to highlight his personal achievements as leader, noting that the "Change of November 7, 1987" was undertaken to "safeguard the country's gains" and "to save it from the...decline to which it had fallen." (NOTE: The "Blessed Change" is commonly used to refer to Ben Ali's removal of then President Bourguiba. END NOTE.) He added, "Since the Change, we have undertaken deep reforms...building a society embracing democracy, pluralism and human rights." Noticeably, Ben Ali gave scant attention to the celebration's official theme, "Loyalty to the Republic," which had been emphasized by senior officials (Ref B) in the week leading up to the holiday. ¶5. (SBU) In addition to the political and economic focus, Ben Ali also praised women's role in Tunisia's achievements and the importance of "their active role in ensuring the progress of the country." Other topics Ben Ali covered in his speech included providing opportunities to youth, increasing state benefits to veterans of the independence, and reiterating Tunisia's foreign policies related to the Palestinian issue, Iraq, the Arab Maghreb Union and the Organization of Islamic Conference. ¶6. (C) COMMENT: Creating jobs has always been a main focus of the Ben Ali regime, particularly given its inherent relationship to stability. GOT efforts to spur economic development are more pressing today, considering growth rates of over six percent are needed to provide jobs for the more than 500,000 university graduates that will seek to enter the work force by 2010 (Ref A). While public expressions of commitment are common, it remains unclear if the GOT is prepared to liberalize its economic and investment policies in order to increase employment and become truly integrated into the world economy. END COMMENT. HUDSON