Tunisia has formed a national unity government, the country's Prime Minister has announced, days after a popular revolt ousted the president. The Foreign, Interior and Defence Ministers are reported to have retained their jobs, with several opposition figures joining the government.

The government will be led by incumbent Prime Minister Mohammed Ghannouchi, and aims to prepare Tunisia for elections. The announcement came hours after new street violence flared in Tunis. Police used water cannon, tear gas and occasional gunshots to disperse several hundred demonstrators calling for the party of ousted President Zine al-Abidine Ben Ali to relinquish power.

The announcement of the new government included the news that Tunisia's Information Ministry would be abolished. Reuters news agency said two opposition figures, named as Ahmed Ibrahim and Mustafa Ben Jaafar, would be in the new government. Mr Ghannouchi also announced that all political prisoners would be freed.

The announcement came amid growing pressure from demonstrators for Tunisia to make a clean break with the policies of the former president, who was in office for 23 years.

Reports say there is some uncertainty over whether the inclusion of several veteran ministers in senior positions will be acceptable to those protesting on the streets. Widespread protests over high unemployment and high food prices pitched demonstrators against Tunisia's police and military, eventually toppling Mr Ben Ali's government. The country has been in a state of emergency since he fled to Saudi Arabia on Friday.