Tunisia PM warns of economic austerity, job cuts

Tunisia's Prime Minister-designate Youssef Chahed speaks during a news conference after his meeting with Tunisia's President Beji Caid Essebsi (not pictured) in Tunis, Tunisia August 20, 2016. REUTERS/Zoubeir Souissi

TUNIS (Reuters) - Tunisia's Prime Minister designate Youssef Chahed said on Friday the country would need to adopt an austerity programme including public sector job cuts and new taxes if current economic difficulties continued.

His warning to parliament came as lawmakers were about to vote on whether to accept his new cabinet. Tunisia is struggling with lower tourism revenues after two major attacks on foreign tourists last year hit what is one of the country's key industries.