BEIRUT: Lebanon’s caretaker Prime Minister Hassan Diab has ruled out the possibility of reinstating the government he led until its resignation on August 10, 2020. In a statement issued on Wednesday, Diab said: “Defining the powers of a caretaker government and the role of the resigned Cabinet requires a constitutional interpretation, which is the exclusive right of parliament.” Diab was, indirectly, responding to an invitation issued by Hezbollah Secretary-General Hassan Nasrallah a few days ago to reactivate the resigned government, as President Michel Aoun and Prime Minister-designate Saad Hariri remain in deadlock over the formation of a new government for the crises-stricken country. Diab continued his statement by saying that eight months after his cabinet resigned in the aftermath of August’s devastating Beirut Port explosion, “efforts have not succeeded in forming a government that would save Lebanon from its current crisis. Things have even gone beyond logic and the government’s formation has become a national crisis, which has exacerbated the suffering of the Lebanese. Forming a new government remains a priority.”

The formation of a new government remains fraught with difficulty, however, given the vast political gulf between the two sides. Aoun is reportedly insisting that he and his allies be granted a third of cabinet portfolios, effectively handing them the power of veto over any major government decision. His demand has the indirect support of Hezbollah, which is calling for a “techno-political government,” while other parties are backing a government consisting of independent ministers with no party or bloc enjoying a ‘blocking third.’ Aoun met with the ambassadors of France and Saudi Arabia on Tuesday to try and clarify his position. The Lebanese media described those meetings as “an attempt to be granted clearance and to hold Saad Hariri responsible for the delay.” However, the Saudi ambassador’s statement from the presidential palace about respecting Lebanon’s sovereignty, not interfering in others’ affairs and committing to the Taif Agreement suggested that attempt failed.

By MOHAMMED ABU ZAID — arabnews.com — CAIRO: The Arab League has said it is ready to intervene to solve the crisis of forming the Lebanese government between President Michel Aoun and Prime Minister-designate Saad Hariri. The bloc urged Lebanese politicians to work quickly to end a political deadlock and offered to help Lebanon overcome […]

By BY DAVID WOOD, JACOB BOSWALL — foreignpolicy.com — Of the 40-strong staff at the cleaning company he works for, Velvet Services, Hamadeh is the only Lebanese among mostly Bangladeshis. “Honestly, I know [Lebanese] people who really need work, but none of them work as cleaners,” Hamadeh said. “I know that they wouldn’t do this kind of work.” Nivine Zarzour, Hamadeh’s boss, has tried to hire more Lebanese, whom she can pay with lira instead of increasingly scarce—and expensive—U.S. dollars. But she has failed to attract Lebanese recruits, which she traces to a deep-seated cultural stigma. “The main reason is not the salary,” Zarzour said. “We [Lebanese] always had foreign cleaners and helpers.” For decades, Lebanon has relied on migrant workers—recruited from such countries as Bangladesh, Ethiopia, and the Philippines—to clean houses, operate gas pumps, and stock supermarket shelves. The largest sector for migrant labor is live-in domestic work, which accounted for 80 percent of migrant labor permits issued last year, according to statistics obtained from the Ministry of Labor.

Demand for foreign workers has propped up Lebanon’s notorious kafala system, which activists decry as exposing workers to modern-day indentured servitude. Originating in the Gulf, kafala ties a migrant worker’s residency in Lebanon to their employer, or kafeel (sponsor). Kafala workers rarely enjoy basic guarantees of rest days, set working hours, or freedom to switch jobs. Without a doubt, Lebanon’s economic crisis has shaken the kafala system. Records from the Ministry of Labor indicate that new migrant worker arrivals dropped by 75 percent from 2019 to 2020. Employers are increasingly unable to pay staff, and foreign workers are now less inclined to gamble on Lebanon. As demand plummets, the number of local recruitment agencies has shrunk from around 600 to 250 companies, according to industry sources. Yet all signs indicate that kafala will reemerge, battered but unbroken, from Lebanon’s financial implosion. Like Hamadeh, some Lebanese might take on shift work in taboo fields like cleaning to make ends meet. But for the most part, it is still only foreigners who appear willing to work in many such positions.

BEIRUT (Reuters) – Saudi Arabia’s ambassador called on Lebanese political parties to quickly form a new government that will have to pull the country from financial crisis, after months of political wrangling. “I stressed the need to put the higher national interest first to launch drastic reforms that can restore the international community’s confidence in […]

by arabnews.com — NAJIA HOUSSARI — BEIRUT: A critical meeting on Monday between Lebanese President Michel Aoun and Prime Minister-designate Saad Hariri on the country’s uncertain future failed to reach an agreement. The 18th meeting between the two men, held at the Presidential Palace, was met before and after with pessimism by much of the Lebanese public. Hariri insists on forming a government of 18 independent specialists acting as ministers, without the capacity for a blocking third by any party, while Aoun and his Free Patriotic Movement (FPM) propose a government of 20 ministers, with the right to name 6 ministers in addition to an Armenian minister. After Monday’s meeting, which lasted just 35 minutes, Hariri said that Aoun sent him on Sunday “a complete ministerial structure in which the portfolios were distributed among the sects and parties, along with a letter telling me that it is advisable to fill it out. “The list includes a blocking third of his political team, whether the government consists of 18, 20 or 22 ministers. “He asked me to suggest names for the portfolios according to the sectarian and party distribution that he had prepared.”

Hariri said that he told Aoun during the meeting that “this is unacceptable because it is not the prime minister—designate’s job to fill out lists prepared by anyone, and it is not the job of the president to form a government. “Our constitution clearly says that the prime minister-designate forms the government and puts the names, and discusses his formation with the president of the republic. As a result of this, Hariri said: “Accordingly, I respectfully informed him that I consider his letter as if it had not been sent. I returned it to him and informed him that I would keep a copy of it for history.” Hariri said he previously suggested a government formation to Aoun more than 100 days ago, and told him: “I am ready for any proposals and amendments to names and portfolios. Even with his insistence on the Interior Ministry, I suggested a solution for him. Unfortunately, his answer was clear: The blocking third.” Hariri added: “I have one goal, which is to put an end to the collapse and the suffering of the Lebanese. I asked the president to listen to the pain of the Lebanese and give the country its only and last chance for a government of specialists to implement reforms and stop the collapse without disruption or narrow partisan considerations.” Hariri denied that he had previously provided Aoun with broad lines for his government. He distributed to the media the list of “specialized ministers” that he presented to Aoun on Dec. 9, requesting that “public opinion be the judge.”

By NADIM SHEHADI — arabnews.com — Two parallel narratives about Lebanon prevail: One is about the country being a failed state and the other is about a state that has been battered until it failed. According to the first narrative, Lebanon is an artificial country created by colonial powers; it never became a proper sovereign nation, while its people are divided and have no sense of patriotism or nationalism and only care for narrow family and sectarian interests at the expense of the country as a whole. It also states that Lebanon is a failed state ruled by a corrupt sectarian elite, a kleptocratic oligarchy of former warlords and feudal families whose allegiances are to foreign powers and who have perpetuated their rule through clientelism and gerrymandered elections. The country was bankrupted by a Ponzi scheme run by an alliance of mafia-style bankers and militia leaders. This point of view maintains that Lebanon was never a viable project and its history is one of continuous conflict and external intervention, with a few cease-fires in between. Furthermore, there is no real productive and self-sufficient economy; it is a rentier economy consisting mainly of services that are totally dependent on volatile external relations, and it is thus not sustainable. Hence, Lebanon should invest in industry and agriculture, as well as modern information technology and innovation.

According to this narrative, last year’s Beirut blast was the result of corruption and negligence and the lack of movement on reforms and a recovery plan since the financial collapse of October 2019. It was caused by the selfishness and carelessness of the ruling class. The whole political establishment is thus rotten to the core and must resign en masse (“all means all”) and political parties should be abolished and replaced by competent technocrats with extraordinary powers to enact reforms and implement the policies needed to get Lebanon out of this crisis. Meanwhile, the battered state narrative declares that the country has been subjected to a systematic and coordinated “battering” since September 2004, when UN Security Council resolution 1559 challenged the Syrian presence and the arms of Hezbollah. Lebanon gradually became held hostage by Hezbollah, which effectively replaced Syria, and the ransom paid every year to keep the hostage alive has bankrupted the country.

by english.aawsat.com — Lebanese former Prime Ministers Najib Mikati, Fouad Siniora and Tammam Salam deplored President Michel Aoun’s behavior towards Prime Minister-designate Saad Hariri, accusing him of “distorting the constitution”. They instead underlined the need to form a government that enjoys the confidence of the Lebanese people. In a statement following a meeting held in […]

by arabnews.com — NAJIA HOUSSARI — BEIRUT: Women took to the streets on Saturday afternoon on the eve of Mother’s Day, despite warnings from doctors about the risk of the coronavirus spreading. Mothers’ anger at the current situation, which has prompted a generation of young people to migrate, pushed dozens to protest. A group of mothers gathered in the Bechara Al Khoury area in Beirut and went to downtown Beirut and to the port, site of the port blast seven months ago. They wore face masks and waved Lebanese flags and banners. The mothers cried and shouted slogans, demanding that the politicians leave.

The protests took place as dozens of flowerpots, wrapped in glossy colorful paper, were spread out in front of flower shops in Beirut and its suburbs on Saturday. Among their leaves were signs showing their price of 40,000 Lebanese pounds ($26). The front of bakeries and patisserie shops were filled with cakes, whose prices ranged from 50,000-150,000 Lebanese pounds. Mother’s Day on Sunday in Lebanon coincides with the beginning of spring. The Lebanese traditionally spend lavishly on gifts for their mothers or wives. But celebrating the occasion this year is different. Compared to the situation in previous years, there are hardly any customers in the clothing and perfume stores in the main shopping centers.

The prices, as Mrs. Samar said, “are extremely high for those who get their salary in Lebanese pounds. They can barely buy food and baby milk, if they can find them at all, so how can I buy a jacket for my mother whose price is twice my salary? Or how can buy her a bottle of perfume whose price is more than 1.5 million Lebanese pounds?” The dollar continued its decline on Saturday, trading at between 10,100-11,000 Lebanese pounds. The country is waiting for the outcome of the meeting betwen President Michel Aoun and Prime Minister-designate Saad Hariri on Monday, but expectations are not high. After meeting President Michel Aoun on Saturday, Lebanese Progressive Socialist Party Leader Walid Jumblatt, said: “We have reached absolute stalemate amid the economic collapse. Hunger is knocking on people’s doors, and reconciliation has become necessary. God bears witness that I have told people (the reality of the situation).” Legal money changers are also cautious. Bilal Ghandour, an owner of a jewelry store in Beirut, said: “On Saturday, money changers refrained from selling dollars. They only bought dollars, fearing that the exchange rate of the dollar would rise on Monday after the meeting at the Republican Palace.” Ghandour described sales in his shop as “very light.” He said: “The price of a gram of 18-carat gold is $42, which means 462,000 Lebanese pounds, as per the exchange rate on Saturday, and a small piece of gold must be more than five grams. The situation is very difficult.” “Those who have dollars can buy, but they only buy pieces whose prices do not exceed $200-$300.”

By CORNELIA MEYER — Arabnews.com — LONDON: Over the past two weeks the Lebanese pound has lost more than 20 percent of its value against the dollar on the black market. Since October 2019 the exchange rate has plummeted by 90 percent, affecting everyone in the country. These numbers are stark. On March 16 three money changers told the AFP news agency they were buying dollars for 14,800 to 14,900 Lebanese pounds. The currency is pegged to the dollar and the official rate is set at 1,507.5 pounds to one dollar. However, dollars are generally unavailable at the official rate because of the economic crisis, which is why black-market rates apply. In 2020, Lebanon was the fourth most-indebted country in the world behind Japan, Greece and Eritrea. In March last year, the country defaulted on its international debt for the first time in its history. Since then, there have been no economic reforms and no payment plans agreed.

The situation is exacerbated by the banking crisis and the effects of the pandemic. The nation’s banks face bankruptcy, having lent up to 70 percent of their assets to an insolvent state and central bank. The country has lost its creditworthiness and is resorting to printing more, increasingly worthless, money which is further fueling inflation. The depreciation of the pound resulted in staggering inflation of 84 percent in 2020. To make matters worse, food inflation stood at 402 percent. Meanwhile Lebanon’s gross domestic product contracted by 25 percent last year. The World Bank estimates that 50 percent of Lebanon’s population has slipped below the poverty line, which is mind-boggling in a country that 60 years ago was known as the “Switzerland of the Middle East.” The economic situation is worse now than it was during the civil war in the 1970s and 1980s. What we see in Lebanon is a classic vicious circle: the worse the economy gets, the more the currency depreciates and vice versa. The numbers reflect a defunct economy.

By NAJIA HOUSSARI — arabnews.com — BEIRUT: Hezbollah has walked away from a previous agreement to form a Lebanese government of nonpolitical specialists, claiming that any leadership not backed by political forces “will go down in a week or two.” The militant party’s change of tack has shattered hopes that an 18th meeting between President Michel Aoun and Prime Minister-designate Saad Hariri scheduled for next Monday would end the long-running stalemate over the formation of the government. Hezbollah leader Hassan Nasrallah’s comments, made in a televised address on Thursday, also undermine French efforts launched by President Emmanuel Macron to form a government free of political forces in order to gain the confidence of the international community and help Lebanon recover from its crippling economic and health crisis. Mustafa Alloush, a leading figure in Hariri’s Future Movement, said: “There is a chance to agree on the formation of the government on Monday, but Hariri has no intention of bringing back a political government because it will inevitably fail, based on previous experience.”

Aoun remained firm in his demands for a government of 20 ministers with the blocking third, while Hariri seeks a government of 18 specialists. The disagreement between the two escalated on Wednesday after an exchange of statements, with Aoun calling on Hariri to step down if is unable to form a government. Hariri responded by asking Aoun to set a date for early presidential elections. Hopes that Monday’s meeting could end the political impasse lifted the Lebanese pound to 11,500 against the US dollar after it had earlier exceeded 15,000 on the black market. However, the currency lost value again on Friday after Nasrallah’s address. In his speech, the Hezbollah chief criticized the International Monetary Fund, on which Lebanon relies for assistance, and attacked calls for Lebanon’s neutrality, saying that these were part of efforts to include the country in the “US-Israeli axis in the region.” Nasrallah also targeted the policies of Lebanese central bank Gov. Riad Salameh, warning him of the need to improve the dollar exchange rate.