Lebanon, unable to form government, faces economic collapse

Lebanon is at its lowest ebb, with both the economic and political situation becoming increasingly unsustainable. The country is in the midst of a deep economic crisis that has provoked hundreds of demonstrations across the country, compounded by the political inability to form a government.

The Arab country is suffering the worst economic crisis since the civil war, with the currency plummeting by 85% for more than a year, while wages have held up as inflation has soared. The whole situation has led to the loss of a large number of jobs and poverty has reached almost half of the population since the end of 2019. The COVID-19 crisis and the collapse of the Lebanese healthcare system have further dilapidated aspirations for recovery.

In addition to this announced economic collapse, the country's leaders are unable to reach agreements to form a government that can take measures to combat this severe crisis. Prime Minister-designate Saad Hariri visited President Michel Aoun at his palace in Baabda, near Beirut, in what has been described as "an attempt to unblock the government", which has been deadlocked for a month, but without concrete results.

The meeting was quite brief, and less than an hour after Hariri entered the Presidential Palace, he left to address the country, describing the talks "as an opportunity" to form a cabinet that can work with the IMF and the international community to restore confidence in Lebanon. The two leaders are scheduled to meet again on Monday, 22 March, in what would be their 18th meeting since Hariri was nominated to be the next prime minister nearly five months ago.

Hariri said meetings between the two would continue despite not having made much progress. "I have explained to him the importance of the golden opportunity that is before us. So we must accelerate the formation of the government. Each political team must, from now on, take responsibility for their positions," Hariri said after meeting with Aoun.

The prime minister added: "During my visits to Turkey and Egypt, and especially during my recent visit to France, I sensed the enthusiasm to form a government based on the road map drawn up by President Emmanuel Macron, which we had agreed on... to save Lebanon, stop the deterioration and rebuild the port of Beirut, all of that is ready".

The political discord between Hariri and Aoun has been further aggravated after Aoun accused Hariri of being a "liar" in a leaked video of a meeting between the president and interim prime minister Hassan Diab on 11 January.

At such a delicate moment for their country, the two leaders are unable to reach an agreement that could break the deadlock. Aoun, together with the Free Patriotic Movement, is demanding the appointment of Christian ministers in the government and raising their number to 20, allowing for a one-third blockade in favour of the president. For his part, Hariri insists on a government of specialists based on the French initiative and the tacit support of some forces in the country, such as the Amal Movement. On 9 December, Hariri submitted a list of 18 ministers to President Aoun and is still awaiting a response.

Following the meeting between the two leaders and in light of the lack of progress, Hezbollah leader Hassan Nasrallah, President Aoun's main ally, urged Hariri to include "all" political parties in his cabinet, claiming that an exclusively technocratic government would be incapable of implementing the necessary reforms. Meanwhile, French President Emmanuel Macron warned that Paris's approach to the Lebanese crisis will have to change "clearly" in the coming weeks.