New Crisis Looms in Lebanon, Ministry Unable to Pay Salaries of Civil Servants

A money exchange vendor displays Lebanese pound banknotes at his shop in Beirut, Lebanon, January 5, 2022. Picture taken January 5, 2022. (File photo: Reuters)
A money exchange vendor displays Lebanese pound banknotes at his shop in Beirut, Lebanon, January 5, 2022. Picture taken January 5, 2022. (File photo: Reuters)
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New Crisis Looms in Lebanon, Ministry Unable to Pay Salaries of Civil Servants

A money exchange vendor displays Lebanese pound banknotes at his shop in Beirut, Lebanon, January 5, 2022. Picture taken January 5, 2022. (File photo: Reuters)
A money exchange vendor displays Lebanese pound banknotes at his shop in Beirut, Lebanon, January 5, 2022. Picture taken January 5, 2022. (File photo: Reuters)

Labor unions in Lebanon on Tuesday warned of a new crisis looming after reports that the finance ministry might not be able to pay the June salaries for public sector employees.

On Friday, the Finance Ministry’s media office made a statement announcing that it “will not be able to disburse salaries, compensations, wages, and the prescribed increase due at the end of June, before Eid Al-Adha, because of the lack of financial appropriations until the aforementioned date.”

General Labor Union's President Bechara Al-Asmar expressed concern over the matter, saying it would impact around 300 thousand government employees.

In remarks to Arab News Agency, Asmar said the country’s finance ministry took that decision over lack of state budget reserves, amid an unapproved 2023 state budget and a vacuum at the country’s top state post.

He said the parliament must first pass legislation in order for the government to disburse the salaries of civil servants.

Asmar said the matter must be addressed as soon as possible “otherwise we could resort to a general strike and street protests”.

Nawal Nasr, head of the Public Administration Employee’s Union, told the news agency that not all segments of the public sector suffer the same.

“Some segments of the public sector have won the State’s attention. Judges, lawmakers, ministers, the telecommunication and electricity sector employees have all won the State’s attention only because they (officials) have shares in that,” she said.

She said the privileged ones got a raise and health benefits while the rest of the employees, mainly low-income ones, still suffer despite a monthly financial aid amounting to $100 to each personnel, provided by the International Monetary fund. “But what can it add to their purchasing power”? she asked.

Lebanon is grappling with a deep economic crisis since 2019, amid vacuum at the post of presidency and political and institutional paralysis which is stoking fears of a broader breakdown.

 

 

 



Lebanon Elects Army Chief as New President

The Lebanese Parliament building a day before a session to elect the Lebanese president, in Beirut, Lebanon, 08 January 2025. (EPA)
The Lebanese Parliament building a day before a session to elect the Lebanese president, in Beirut, Lebanon, 08 January 2025. (EPA)
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Lebanon Elects Army Chief as New President

The Lebanese Parliament building a day before a session to elect the Lebanese president, in Beirut, Lebanon, 08 January 2025. (EPA)
The Lebanese Parliament building a day before a session to elect the Lebanese president, in Beirut, Lebanon, 08 January 2025. (EPA)

Lebanon's parliament elected army chief Joseph Aoun head of state on Thursday, filling the vacant presidency with a general who enjoys US approval and showing the diminished sway of the Iran-backed Hezbollah group after its devastating war with Israel.
The outcome reflected shifts in the power balance in Lebanon and the wider Middle East, with Hezbollah badly pummelled from last year's war, and its Syrian ally Bashar al-Assad toppled in December.
The presidency, reserved for a Maronite Christian in Lebanon's sectarian power-sharing system, has been vacant since Michel Aoun's term ended in October 2022, with deeply divided factions unable to agree on a candidate able to win enough votes in the 128-seat parliament.
Aoun fell short of the 86 votes needed in a first round vote, but crossed the threshold with 99 votes in a second round, according to Parliament Speaker Nabih Berri, after lawmakers from Hezbollah and its Shiite ally the Amal Movement backed him.
Momentum built behind Aoun on Wednesday as Hezbollah's long preferred candidate, Suleiman Franjieh, withdrew and declared support for the army commander, and as French envoy shuttled around Beirut, urging his election in meetings with politicians, three Lebanese political sources said.
Aoun's election is a first step towards reviving government institutions in a country which has had neither a head of state nor a fully empowered cabinet since Aoun left office.
Lebanon, its economy still reeling from a devastating financial collapse in 2019, is in dire need of international support to rebuild from the war, which the World Bank estimates cost the country $8.5 billion.
Lebanon's system of government requires the new president to convene consultations with lawmakers to nominate a Sunni Muslim prime minister to form a new cabinet, a process that can often be protracted as factions barter over ministerial portfolios.
Aoun has a key role in shoring up a ceasefire between Hezbollah and Israel which was brokered by Washington and Paris in November. The terms require the Lebanese military to deploy into south Lebanon as Israeli troops and Hezbollah withdraw forces.
Aoun, 60, has been commander of the Lebanese army since 2017.