In the space of just nine months, Tunisia’s President Kais Saied has centralised power and dismantled the institutions established by the young democracy since the revolution of 2011. His new constitution establishing a “New Republic” will be put to a referendum on 25 July 2022. Saied’s plans have divided the nation, with growing resistance from political and civil society actors demanding the return to an inclusive and democratic process. At the same time, the country is moving closer to default. Tunisia’s European partners have invested heavily in democratisation and view the autocratic shift with concern. But they have failed to take meaningful action, and each new step by Saied makes it harder to reverse the path. In the interests of Tunisia’s stability, Europe should move decisively and employ the financial and diplomatic leverage it has due to Tunisia’s economic crisis.