Karam Steers South Lebanon into New Phase as Mechanism Chief

A UNIFIL military vehicle bearing the United Nations emblem moves ahead of a Lebanese army car during a joint patrol (UNIFIL)
A UNIFIL military vehicle bearing the United Nations emblem moves ahead of a Lebanese army car during a joint patrol (UNIFIL)
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Karam Steers South Lebanon into New Phase as Mechanism Chief

A UNIFIL military vehicle bearing the United Nations emblem moves ahead of a Lebanese army car during a joint patrol (UNIFIL)
A UNIFIL military vehicle bearing the United Nations emblem moves ahead of a Lebanese army car during a joint patrol (UNIFIL)

South Lebanon is bracing for a new political stage after President Joseph Aoun appointed former ambassador to the United States, attorney Simon Karam, to head Lebanon’s delegation to the committee overseeing the implementation of the cessation of hostilities, known as the Mechanism.

Karam joined the committee’s meeting in Naqoura on Wednesday alongside United States envoy Morgan Ortagus.

Ortagus will represent Washington in meetings held by the United Nations mission at the ambassadorial level for Security Council members in Beirut on Friday. She is scheduled to meet the three leaders, President Joseph Aoun, Parliament Speaker Nabih Berri, and Prime Minister Nawaf Salam, as well as Army Commander General Rodolphe Haykal, before travelling south the next day to meet the Mechanism and UNIFIL command.

Karam’s appointment followed a United States request to add a civilian to the Lebanese team amid escalating Israeli threats to expand the war at the end of this year in an attempt to enforce exclusive weapons control from north of the Litani to Lebanon’s border with Syria.

The expectation, according to Lebanese US contacts, is that such threats would recede under Washington’s guarantee, diffusing Israeli pressure in tandem with Karam’s designation.

Coordinated Step

Ministerial sources told Asharq Al-Awsat that Aoun’s decision to appoint Karam was coordinated with Prime Minister Nawaf Salam and Speaker Nabih Berri with authorization from the latter’s ally, Hezbollah.

They said Aoun withheld the announcement until he secured American guarantees preventing Israel from widening the war.

The sources added that Aoun informed Ortagus of Karam’s appointment before her trip to Tel Aviv to meet Prime Minister Benjamin Netanyahu and Defense Minister Israel Katz.

They said Aoun also contacted Washington directly to ensure its readiness to provide guarantees curbing Israeli actions and preventing any expansion of hostilities while keeping the current rules of engagement intact.

The sources said the significance of Karam’s appointment lies in the political cover Aoun secured for the mission, blocking populist criticism, particularly from Hezbollah.

This, they noted, was achieved through Aoun’s communication with the party in parallel with Berri’s efforts to rule out any imminent expansion of the war before the announcement.

They pointed as well to the historic visit of Pope Leo XIV to Lebanon, describing it as having softened positions, with the mass public receptions during the visit serving as a popular mandate by tens of thousands of Lebanese calling for peace and stability.

Opening to Restart Negotiations

According to the sources, Lebanon’s international and Arab partners were informed of Karam’s appointment in line with Beirut’s intention to engineer a breakthrough that could revive negotiations and push Israel, through United States mediation and Mechanism oversight, to halt hostilities.

Discussions are meant to proceed under the framework of paving the way for the implementation of Resolution 1701, contingent on the state’s full authority over its territory.

They added that Karam’s appointment effectively signaled to the incoming United Nations mission that Lebanon was responding to international demands for peaceful negotiations with Israel, consistent with exclusive weapons control.

United Nations Mission Arrives Saturday

The sources said the United Nations mission will arrive in Beirut on Thursday evening, coming from Damascus after meeting Syrian President Ahmed al-Sharaa and inspecting conditions in Syria.

They will travel to the south on Saturday to meet the Mechanism and UNIFIL command to review the army’s deployment in the liberated zone south of the Litani and the removal of Hezbollah’s military installations and infrastructure, and to discuss the post–UNIFIL mandate period after its scheduled end next year, including support for the army in implementing Resolution 1701.

They added that UNIFIL’s leadership would continue its mission through 2026 in line with Resolution 1701 despite funding shortages, but did not rule out a possible extension if United States-mediated Lebanese-Israeli negotiations make progress.

UNIFIL has already begun reducing its personnel and equipment and is preparing a new withdrawal phase.

Exclusive Weapons Control

The sources said that reactivating Mechanism meetings, if Israel responds to United States pressure to halt any expansion of the war, should help lower public fears in Lebanon despite continuing threats.

At the same time, Lebanon will be compelled to launch internal negotiations with Hezbollah, with Berri playing a constructive role, to draw up a timeline for completing exclusive weapons control from north of the Litani to the international border.

The first phase, ending this year, is considered on track according to Mechanism and UNIFIL assessments of the army’s deployment in the liberated area.

They said Lebanon has no objection to verifying Israeli claims that Hezbollah stores weapons in homes south of the Litani.

The problem, they argued, is that Israel has been bombing such homes instead of filing complaints to the Mechanism, which would refer them to the army and UNIFIL for verification under legal procedures.

Several Israeli strikes flattened homes south and north of the Litani that, according to the army, contained no Hezbollah weapons, prompting the army to submit detailed reports to the Mechanism.

Army Requirements and Filling UNIFIL’s Gap

A Western diplomatic source told Asharq Al-Awsat that the United Nations mission’s visit to the south is not limited to reviewing the situation on the ground or the army’s deployment amid Israel’s continued occupation of several frontline hills and its construction of two concrete walls that annexed about 4,500 square meters of Lebanese land.

The visit, the source said, is also meant to assess the army’s needs to fill the gap once UNIFIL withdraws.

The source asked whether an extension of UNIFIL’s mandate is possible in light of the mission’s ground assessment and the Security Council’s ability to reconsider ending its mission without full implementation of Resolution 1701, provided the United States refrains from vetoing such an extension.

UNIFIL remains, the source said, the only international witness for southerners on the resolution’s implementation unless the Mechanism’s mandate is expanded to allow Washington to directly oversee Lebanese Israeli negotiations should the resolution remain unimplemented.

Grace Period

The sources cautioned against prematurely drawing conclusions ahead of UNIFIL’s mandate expiry while Hezbollah appears to be buying time.

They said Karam’s appointment effectively extended Lebanon’s grace period, giving the government an opportunity to finalize the exclusive weapons framework and produce a timeline that would push Hezbollah to “Lebanonize” its stance and weapons in line with Lebanese rather than Iranian timing, as critics argue.

Failure to do so, they warned, could revive Israeli threats with American backing. Lebanon, they said, cannot afford to waste the opportunity granted to it, which should instead be used to secure the south and oblige Hezbollah to accept a phased handover of its weapons to the state.

 



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.”