Western Source to Asharq Al-Awsat: We’re No Longer Seeking Perfection in New Lebanese Govt

Lebanese Prime Minister-designate Najib Mikati at the Baabda presidential palace in July. (EPA)
Lebanese Prime Minister-designate Najib Mikati at the Baabda presidential palace in July. (EPA)
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Western Source to Asharq Al-Awsat: We’re No Longer Seeking Perfection in New Lebanese Govt

Lebanese Prime Minister-designate Najib Mikati at the Baabda presidential palace in July. (EPA)
Lebanese Prime Minister-designate Najib Mikati at the Baabda presidential palace in July. (EPA)

France and the United States are exerting “soft pressure” on Lebanese officials in order to speed up government formation.

The West is deeply alarmed by the current unprecedented collapse of Lebanon and the suffering of its people that has affected all aspects of their lives and is threatening to have dangerous repercussions.

“The situation can no longer be postponed, and every day that passes without an effective government makes things more difficult,” western diplomats in Lebanon told Asharq Al-Awsat.

Compounding the diplomats’ concerns is the caretaker government’s failure to tackle any aspect of the situation, noting Prime Minister Hassan Diab’s refusal to convene the cabinet in spite of the alarming situation.

“The caretaker government cannot do anything to address the situation, especially since Diab was clear in rejecting meetings by the caretaker government in spite of the compelling circumstances in Lebanon. We have advised him more than once to make moves and do something,” said the diplomats.

“If the current situation does not justify a meeting by the [caretaker] government, what will?”

“There is no reason why the government should not be formed today before tomorrow,” a senior western diplomat told Asharq Al-Awsat. “We are no longer looking for perfection in the new government. After more than a year without a government, we know that there will be some trade-offs that will be made in order to form the government.”

“The new government is not required to do much. Its life will relatively be short, but doing three or four things is enough, the first of which is to negotiate with the International Monetary Fund (IMF), as it is the only side that can provide the liquidity required to salvage the financial situation. This must be accompanied by advice from the IMF on how to manage matters to end the crisis.”

“We have not lowered our standards in terms of the government, but an ‘imperfect’ government is undoubtedly better than no government,” added the source.

As usual, Hezbollah is the main obstacle hindering the West’s dealings with Lebanese governments. The Americans, specifically, refuse to cooperate with any ministry that is held by the party or whose minister is named by it.

The best evidence of this occurred at the height of the coronavirus pandemic when the Americans refused to deal with Health Minister Hamad Hassan, who is loyal to the party, when the US attempted to offer direct aid to some private hospitals and associations. The same thing may happen in a new government whose health portfolio is again held by Hezbollah.

Moreover, the source stressed the need for elections to be held on time in Lebanon. “The three elections (parliamentary, presidential and municipal) must take place as scheduled, and this was confirmed by the International Support Group for Lebanon, with the express and remarkable approval of Russia and China, which usually avoid getting involved in any controversial issues.”

“However, the lack of action by the Ministry of Interior to launch the pre-election processes is not reassuring. The question of whether a new election law is needed is an open one. Lebanon is the only country in the world I know of in which a new law seems to be passed every time elections are held.”

Furthermore, the source said: “The Public Tender Law, which was approved by a large majority in Parliament, is very important for Lebanon, but we were surprised that Gebran Bassil and others objected to it. We very much hope that they will not prevent the issuance of this law and its implementation, which is critical for rooting out corruption and building more transparency into the government tendering process.”

With every “carrot” that is waved by western diplomats to Lebanese officials, there remains the “stick” that they wave to those obstructing the formation of the government.

“The continuation of the existing obstructions opens the door to different ways to address these obstructions,” said the source. “The French have some ability to move to impose sanctions, and American law gives the US administration similar capabilities that we will not hesitate to use to curb the obstructionists. Sanctions are not a goal in themselves. Sanctions are useful as long as they are not imposed, but when they are, their effect will have expired. For this reason, we hope that the threat of sanctions will be a great motivation for Lebanese officials to facilitate the formation of a government.”

Asharq Al-Awsat has learned that head of the Free Patriotic Movement MP Gebran Bassil has contacted American law firms to tackle his objection to sanctions imposed on him by the US Treasury. “Lifting the sanction from persons who are already under sanctions, as in the case of Gebran Bassil, is a complex process and does not take place without sufficient evidence to impose or lift the sanctions. Washington had sufficient and compelling evidence in the case of Minister Bassil,” said the source.

“He [Bassil] has the legal right to oppose this measure before the American courts, and we have heard that he is communicating with law firms for this purpose, but this means that the evidence and documents on which we relied will become ‘public’ in the sense that they are publishable.”



Disputes Over Quotas Stall Iraq Government Talks

A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
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Disputes Over Quotas Stall Iraq Government Talks

A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)

Rivalries within Iraq’s Shiite Coordination Framework have led to a political deadlock over naming a new prime minister, as internal disagreements persist over both the selection mechanism and the division of ministerial posts among the bloc’s factions.

According to sources, a meeting of Coordination Framework leaders - postponed several times in recent days - will focus on finding a solution that reconciles two approaches: one based on the “electoral weight” of member blocs, and the other on “political consensus” to choose a compromise candidate acceptable to all parties.

The bloc has failed to agree on a nominee during two previous meetings after votes between two leading candidates ended in a tie, deepening divisions and delaying a decision. The upcoming session is seen as potentially decisive, though another postponement remains possible if differences persist.

An Iraqi political source said a decision on the prime minister could come within hours as the constitutional deadline approaches.

“I expect the matter to be settled one way or another, because next Saturday marks the final deadline, and continued delay is already having a negative impact even among their own base,” the source said.

The source added that if the alliance adopts the criterion of electoral weight, Ihsan al-Awadi, the candidate backed by Prime Minister Mohammed Shia al-Sudani, would have the strongest chances. However, if the decision remains confined to the bloc’s leadership, the contest would stay within a pool of 12 votes, with the balance possibly tipping in favor of Bassem al-Badri.

The dispute extends beyond the selection mechanism to include internal bargaining over the distribution of ministries and sovereign portfolios. Some factions have tied their support for any candidate to the size of their share in the next government, further complicating negotiations.

Two prominent candidates have emerged with nearly equal backing within the Coordination Framework, resulting in a deadlock and reviving the option of a compromise candidate if neither consensus nor a majority decision can be reached.

The Coordination Framework, formed after the most recent elections, includes several major Shiite forces, among them alliances led by former prime ministers Nouri al-Maliki and Haider al-Abadi, as well as the bloc of current Prime Minister Mohammed Shia al-Sudani, who is heading a caretaker government. Political pressure is mounting as the constitutional deadline nears for the president to designate a new prime minister.

The election of President Nizar Amidi has triggered the formal government formation process, with a constitutional deadline set to expire on April 26, placing political forces under pressure to avoid a return to prolonged deadlock.

With complications persisting, there are many scenarios, including a last-minute agreement, further delay, or a shift toward a compromise candidate. The standoff underscores fragile cohesion within the Shiite camp and a widening gap between electoral calculations and the demands of political consensus.


Fallout from Iran War Casts Shadow over Egypt’s New Budget

Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
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Fallout from Iran War Casts Shadow over Egypt’s New Budget

Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)

The economic fallout from the Iran war has cast a shadow over Egypt’s new state budget, Finance Minister Ahmed Kouchouk told parliament on Wednesday, as he presented the draft before it was referred to specialized committees for discussion, with the government pledging swift amendments “to enhance its ability to deal with current and potential risks.”

Kouchouk’s statement came a day after Prime Minister Mostafa Madbouly addressed the House of Representatives, focusing on the damage caused by the conflict and ways to manage its repercussions.

He said the government was treating the current regional escalation as a “prolonged crisis,” whose end is difficult to predict given the complexity and overlap of regional and international dynamics, and suggested its economic effects could last through the end of the year.

During the presentation of the 2026-2027 fiscal year budget, 600 billion Egyptian pounds ($11.5 billion) were allocated for energy subsidies, including electricity support, which rose by 39%, according to the finance minister.

A total of 832.3 billion pounds was earmarked for social protection - a 12% annual increase - to support the most vulnerable groups, alongside 90 billion pounds set aside for programs to support economic activity. (The dollar is equivalent to about 52 Egyptian pounds.)

The minister said spending priorities focus on healthcare, education, social protection, and support for production and exports, alongside flexible precautionary policies to address potential challenges and strike a balance between fiscal discipline and economic stimulus. He pointed to “uncertainty in markets and disruptions in trade and supply chains,” describing them as “major challenges and pressures on economies, especially emerging markets.”

Data presented to lawmakers also indicated a 3% reduction in fuel consumption and a 15% cut in electricity and lighting use in response to recent developments. Regarding national projects, the government decided to postpone or slow the implementation of “slow-moving” or fuel-intensive projects on an exceptional basis for three months, renewable if needed.

According to the minister, the government has also decided to limit spending in the final quarter of the current fiscal year to essential expenditures only, including wages, salaries, pensions, and the needs of the health, electricity and petroleum sectors.

Egypt’s budget has been affected by rising costs of securing energy supplies, prompting the government to increase subsidy allocations in the new budget while relying on consumption rationalization and hedging against future developments in the conflict, said economist Mohieddin Abdel Salam. He noted that Egypt has been significantly impacted by rising oil and gas prices.

Figures presented by the finance minister showed the government has mobilized about 135.6 billion pounds since early March to ensure the stability of vital sectors. This includes 90.6 billion pounds for the energy sector, 30 billion pounds to secure essential commodities, subsidized goods, wheat and sugar, and 15 billion pounds to support the healthcare sector and provide medicines.

Abdel Salam told Asharq Al-Awsat that uncertainty remains over Egypt’s ability to attract foreign investment, as some investors are wary of committing funds in the region due to war-related risks. However, he said Egypt could still benefit from opportunities if it manages to distance itself from ongoing tensions.

He noted that these conditions have led to tighter fiscal policies, reflected in holding interest rates steady rather than cutting them, as well as austerity measures and reduced spending by government institutions.

This can be seen in the new budget, he added, which focuses on vital sectors and strengthening social support, particularly amid declining revenues from the Suez Canal and tourism, and potential impacts on remittances from Egyptians abroad.


French Delegation in Algeria to Mend Ties, Rebuild Trust

Chairman of the Algerian Economic Renewal Council, center
Chairman of the Algerian Economic Renewal Council, center
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French Delegation in Algeria to Mend Ties, Rebuild Trust

Chairman of the Algerian Economic Renewal Council, center
Chairman of the Algerian Economic Renewal Council, center

A delegation from the Mouvement des Entreprises de France (Medef) is set to visit Algeria on Thursday, with its president Patrick Martin leading around 40 senior company executives, in an economic push aimed at repairing trade relations strained by political tensions over the past two years.

According to sources within the French diplomatic network based in Algeria, the mission seeks to inject new momentum into direct economic dialogue between the two sides and to restore the position of French companies in the Algerian market.

The visit is also seen as a practical step toward rebuilding trust between economic stakeholders, with the goal of moving past a period of stagnation and reviving trade and investment flows.

Reports cited by Algerian daily El Watan on Wednesday, quoting sources close to the Algerian Economic Renewal Council - the country’s largest employer body - said Medef’s visit will last two days.

The trip comes after a prolonged period of tension in bilateral relations that has affected economic exchanges. Observers say the move is not merely a protocol visit but an attempt to relaunch dialogue between business communities on both sides.

The main objective is to resume talks within the framework of the Algeria-France Economic Relations and Friendship Council, chaired by businessman Kamel Moula, who also heads the Algerian Economic Renewal Council, at a time when French economic presence in Algeria has significantly declined in recent years.

Sources from the Algerian Economic Renewal Council told Asharq Al-Awsat that the planned meetings in Algiers will be limited to bilateral sessions focusing on priority sectors, notably food security and energy - through projects linked to solar power and green hydrogen - as well as healthcare, digitalization and construction.

The mission offers French companies an opportunity to reaffirm their presence and reassure partners of their long-term commitment, the same sources said. It also aims to address certain obstacles, including lengthy administrative procedures, which are estimated to have tripled since 2024.

Observers consider the visit a key test of prospects for reviving economic relations between the two countries.

The Medef visit comes amid signs of a gradual political thaw in relations between Algiers and Paris. A visit by French Interior Minister Laurent Nunez to Algeria in February, during which he was received by President Abdelmadjid Tebboune at the presidential palace, helped pave the way for a measured easing of tensions.

In recent media comments, Michel Bisac, head of the Algerian-French Chamber of Commerce and Industry, warned of the potential fallout from the political crisis between Algeria and France, fueled by political and media circles close to the far right. The crisis erupted in summer 2024 after Paris recognized Moroccan sovereignty over Western Sahara.

“We are in a very delicate situation,” Bisac said, expressing regret over threats “not only to political ties but also economic relations between the two countries.”

He added that if Algeria were to apply to France the same trade measures it previously imposed on Spain after Madrid backed Morocco’s autonomy plan for Western Sahara in 2022, “the bill would be costly for the French economy, with losses approaching 4.8 billion euros.”

That figure reflects the value of French exports to Algeria, a key pillar for several industrial sectors’ foreign trade. Bisac noted that around 6,000 French companies currently operate “for and with Algeria,” supplying goods and services or engaging in industrial partnerships.

“These companies would face serious difficulties if the situation worsens,” he warned, stressing the growing fragility of bilateral economic exchanges. “Until recently, I had great hope ... but today I want to clearly stress the need to avoid escalation.”