Tunisia’s new government won a confidence vote in Parliament.
The Unity government was backed by 167 of the parliament’s 217 members.
The North African state is struggling with lower tourism revenues after two Islamist militant attacks on foreign tourists last year hit what is one of its key industries.
Strikes and protests for jobs have also hurt the country’s phosphate production.
PM Chahed has promised his new government will take tough decisions to help the economy grow and create jobs as the country comes under pressure from international lenders to push through reforms and trim public spending.
At 13.5 percent of GDP, Tunisia’s public sector wage bill is proportionately one of the highest in the world.