Lebanese leaders agreed a new government led by tycoon Najib Mikati on Friday after a year of feuding over cabinet seats that has exacerbated a devastating economic collapse, opening the way to a resumption of talks with the IMF.
The breakthrough followed a flurry of contacts from France which has led efforts to get Lebanon’s fractious leaders to agree a cabinet and begin reforms since last year’s catastrophic Beirut port explosion, senior Lebanese political sources said.
There was no immediate comment from the French foreign ministry.
In televised comments, Mikati’s eyes welled up with tears and his voice broke as he described the hardship and emigration inflicted by the crisis, which has forced three quarters of the population into poverty.
The biggest threat to Lebanon’s stability since the 1975-90 civil war, the crisis hit a crunch point last month when fuel shortages brought much of the country to a standstill, triggering numerous security incidents, adding to Western concern and warnings of worse to come unless something is done.
To secure foreign aid, the government must succeed where its forerunners have failed in enacting reforms to address the root causes of the crisis, including state corruption.
It may not have long: parliamentary elections are due next Spring and Mikati said these should take place on time.
Mikati and President Michel Aoun signed the decree establishing the government in the presence of Nabih Berri, speaker of parliament.
Mikati said divisive politics must be set to one side and that he could not go for talks with the International Monetary Fund only to encounter opposition at home.
Addressing the daily hardships, he described how mothers had been forced to cut back on milk for their children.
“If a mother’s eldest son leaves the country and she has tears in her eyes, she can’t buy a Panadol pill,” he said, referring to medicine shortages.
But Lebanon could no longer afford to subsidize goods such as imported fuel because the country did not have enough hard currency reserves, he said.
Aoun said the government was the best that could be agreed and capable of action.
Difficult task
Like the outgoing cabinet of Prime Minister Hassan Diab, the new one comprises ministers with technical expertise who are not prominent politicians but have been named by the main parties.
The Diab government failed to enact any of the major reforms sought by foreign donors, a task complicated by resistance from major players in Lebanon’s sectarian and factional politics.
“I think (Mikati) has a 50-50 chance of accomplishing anything. Whether you look at it in terms of a program with the IMF, or aid from the Arab countries,” said economist Toufic Gaspard, who has advised the IMF and Lebanon’s finance ministry.
Youssef Khalil, a senior central bank official and aide to governor Riad Salameh, was named finance minister.
Hezbollah, which is designated a terrorist group by the United States, named two of the 24 ministers.
The crisis, which came to a head in late 2019, stems from decades of corruption in the state and unsustainable financing.
Mikati was the third prime minister-designate to attempt to form the government since Diab quit after the port explosion.
Mikati was designated after Saad al-Hariri, a former prime minister, abandoned his efforts.
Hariri traded blame for the failure with Aoun, whose political adversaries have accused Aoun and his political party of seeking effective veto power in the new government by demanding a third of the seats. Aoun has denied this repeatedly.
Mikati told a Lebanese media outlet on Friday the government has no blocking third.
