The European Commission has announced it will target finalising negotiations on a Deep and Comprehensive Free Trade Agreement with Tunisia by 2019.

It also promised a €300m ($337m) financial package in 2017, with similar packages until 2020.

The financial assistance will be focused on financial support and macro financial assistance, as well as cooperation, trade, education, research, counter-terrorism and industry.

The €300m is alongside an additional €800m a year of lending from European financial institutions until 2020. The EU aims to support Tunisia’s infrastructure plans and private sector development under the 2016-20 five-year plan.

The trade agreement should reduce bureaucratic obstacles to investment and help small and medium-sized enterprises (SMEs).

The EU’s support also covers modernising Tunisia’s bureaucracy, security sector reform, reinforcing essential public services and tackling corruption.

Cooperation on migration will be intensified. The EU is facing a migration crisis as increasing numbers of people attempt to enter the EU, often crossing the Mediterranean from Tunisia.

Tunisia has already received loans as part of the EU macro financial assistance (MFA) instrument. A €300m MFA was approved in 2014, followed by a €500m MFA earlier in 2016.

The US-based IMF and World Bank are also extending multibillion-dollar support packages to Tunisia to support the democratic transition as well as business-friendly reforms.