Lebanese heads optimistic on ending gov’t deadlock
BEIRUT/LONDON (Reuters) – Lebanese leaders expressed fresh confidence on Wednesday about reaching a deal to form a new government, with President Michel Aoun saying results of his efforts to break the months-long deadlock would appear this week.
Heavily indebted and with a stagnant economy, Lebanon desperately needs a new government to implement economic reforms that are required to put its public finances on a more sustainable footing and unlock pledges of foreign aid.
However, a group of Sunni lawmakers allied to Iran-backed Hezbollah said that there was no breakthrough yet in stalled efforts.
Walid Sukkarieh, speaking for the six lawmakers, accused Prime Minister-designate Saad Hariri of blocking the process and refusing to recognize their gains in the general election.
A general election in May gave rise to months of wrangling between the rival parties to form a coalition government under the country’s sectarian system, with Hariri designated as prime minister.
Parliament Speaker Nabih Berri was cited as saying he was “optimistic for the possibility of a solution soon” and caretaker Foreign Minister Gebran Bassil said Lebanon would definitely form a new government “despite all obstacles.”
On Tuesday, Aoun said the government formation could not be resolved in the traditional way between the prime minister-designate and other parties, and that he had to get involved to avoid “catastrophe” - an apparent reference to the economy.
He said on Wednesday the results of his new effort would appear “in the next two days.”
Bassil, who is also Aoun’s son-in-law and head of the political party he founded, said partnership between Aoun and Hariri would “certainly lead to the formation of a new government, despite all obstacles.”
He was speaking at a London conference which the Lebanese government hopes will garner investor interest in a capital investment program that aims to tap into billions of dollars of aid pledged at a donors’ conference in April.
But foreign governments and international institutions first want Lebanon to implement long-stalled economic reforms. The country has the world’s third largest public debt compared to its GDP, at more than 150%.
Hariri, also attending the London roadshow, told reporters he was “always optimistic” when asked about the prospects of forming a new government.
Parliament Speaker Berri’s optimism stemmed from Aoun’s intervention in the process, lawmaker Ali Bazzi said.
Agreement on the make-up of the new cabinet has met a series of obstacles as Hariri has sought to forge a deal parceling out 30 cabinet posts among rival groups according to the sectarian system.
The final hurdle has been over Sunni Muslim representation, with the powerful Iran-backed Shi’ite Muslim group Hezbollah demanding a cabinet seat for one of its Sunni allies who gained ground in the election.
Analysts believe one compromise could be for Aoun to nominate one of the Hezbollah-aligned Sunnis, or a figure acceptable to them, among a group of ministers named by the president.
Hariri said on Twitter that the new government would be firmly committed to reforms agreed at the April donors conference, including fiscal reforms.