Tunisian Foreign Minister Taieb Baccouche (R) and his Italian counterpart Paolo Gentiloni attend a news conference in Tunis February 25, 2015. REUTERS/Zoubeir Souissi
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Tunisia canceled a new tax Monday imposed on travelers crossing Libya's border after the measure triggered rioting, highlighting the problems facing the government as it seeks to bolster shaky state accounts.The main teachers union also launched a weeklong strike Monday to demand pay hikes in another challenge to the recently installed government, which is trying to curb state spending and reduce fiscal deficit as required by international lenders.Adding to the government's problems, tens of thousands of teachers went on strike Monday and boycotted student exams to push for higher wages.Public wages account for about a third of the state budget and Tunisia's powerful UGTT labor union started negotiations with the government last week to increase salaries for some 800,000 public sector workers.
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