Lebanon economic crisis among world's worst in 150 years

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Crises-hit Lebanon forms government after over yearlong deadlock​

BY ASSOCIATED PRESS​

BEIRUT MID-EAST
SEP 10, 2021 2:42 PM GMT+3

Lebanon's Prime Minister Najib Mikati gestures as he speaks to the press after meeting with President Michel Aoun at the presidential palace in Baabda, Lebanon, Sept. 10, 2021. (Reuters Photo)


Anew government was formed in Lebanon on Friday, ending a deadlock that lasted more than a year amid multiple crises pushing the country deeper into poverty.

Lebanon has been without a fully empowered government since the catastrophic Aug. 4, 2020 explosion at Beirut port, which forced the resignation of then Prime Minister Hassan Diab’s government. Rival political groups had been locked in disagreement over the make-up of a new government since then, hastening the country’s economic meltdown.

The new Cabinet of 24 ministers headed by billionaire businessperson Najib Mikati was announced by the president's office, and later by the Secretary-General of the Council of Ministers Mahmoud Makkieh. Ministers were handpicked by the same politicians who have ruled the country for the past decades and whose corruption and mismanagement many blame for the country’s current crisis.

The new government announced Friday faces a mammoth task that few believe can be surmounted, including undertaking critically needed reforms. Among its first jobs will be overseeing a financial audit of the Lebanese central bank, and resuming negotiations with the International Monetary Fund for a rescue package to stem the country’s collapse. The new Cabinet is also expected to oversee general elections scheduled for next year.

Mikati, a business tycoon from the northern city of Tripoli and one of the richest men in Lebanon, was tasked with forming a new government in July. He is widely considered to be part of the same political class that brought the country to bankruptcy. He served as prime minister in 2005 and from 2011 to 2013.

It was not immediately clear what last-minute compromise resulted in the breakthrough Friday. The announcement of a new government comes after recent U.S. and French pressure to form a Cabinet, after Lebanon’s economic unraveling reached a critical point with crippling shortages in fuel and medicine threatening to shut down hospitals, bakeries and the country’s internet.

The currency has lost 90% of its value to the dollar since October 2019, driving hyperinflation and plunging more than half the population in poverty.

Mikati became a favorite for the post after he was endorsed by most of Lebanon’s political parties, including the powerful Iran-backed militant Hezbollah group and the other major Shiite party, Amal, led by Parliament Speaker Nabih Berri. Mikati was also endorsed by former Sunni prime ministers including former Prime Minister Saad Hariri, who abandoned efforts to form a government earlier this year after failing to agree with President Michel Aoun on the Cabinet’s makeup.

International calls have mounted for Lebanese leaders to form a new government, but the international community has refused to help Lebanon financially before wide reforms are implemented to fight widespread corruption and mismanagement.

Crises-hit Lebanon forms government after over yearlong deadlock

A new government was formed in Lebanon on Friday, ending a deadlock that lasted more than a year amid multiple crises pushing the country deeper into...

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