Calm is reported to have returned to the streets of Sidi Bouzid in Tunisia, the cradle of the uprising that sparked the Arab Spring.
Frustrations have been growing among Tunisians who want to see more benefits from the overthrow of President Ben Ali, particularly in job creation and wealth redistribution.
Hospital doctors said six people had been injured in the clashes which had seen hundreds of young Tunisians protesting.
Activists said police fired tear-gas and rubber-bullets when the demonstrators began moving towards the governor’s offices.
Hours after the skirmishes, the central government – which is dominated by the Islamist Ennahda Movement – announced that it expects to secure 800-million euros in loans to support the budget in the latter half of this year.
The investment minister said the cash, from the World Bank and the African Development Bank, would fund infrastructure projects and job creation, and would help the private sector recover from the after effects of last year’s revolution.