Lebanon's new Cabinet will focus on reforms to the electricity and banking sectors as their first priorities, an MP told The National, as experts expressed optimism for the future of the country.
Lebanese politicians agreed to form a new government on Friday after 13 months of wrangling over ministerial shares while the country sinks deeper into crisis.
The Cabinet, led by Prime Minister Najib Mikati, has the mammoth task of tackling a severe financial crisis that has pushed the majority of Lebanese into crisis.
Mr Mikati must also enact reforms that are crucial to access billions of dollars in debt relief and loans, and oversee parliamentary elections in eight months. After the elections, the Cabinet will resign, he said on Friday.
Political and financial experts are cautiously optimistic about the two-time former prime minister's new government. They say forming a Cabinet will help curb economic collapse but that a government spearheaded by Lebanon’s entrenched sectarian parties cannot truly solve the crisis.
“Lebanon was like a ship without a captain or sailors. Now that there is a crew, we have a chance, if not to reach the shore, at least to stop sinking,” banker Saeb El Zein said over the phone.
“Containing the downfall alone would be a big success. As Lebanese, that’s all we ask for,” Mr El Zein said, pointing to the Lebanese pound’s slight appreciation after the news as a positive sign.
The Lebanese pound has lost more than 90 per cent of its value since the onset of the crisis in 2019, pushing three quarters of Lebanese below the poverty line, UN data show.
Mr El Zein said if there is political will to pass reforms in Parliament, the current leadership could successfully negotiate a deal with the International Monetary Fund and gain access to loans to alleviate the effects of the crisis on people’s lives.
Negotiations broke down last year after disagreements between Parliament and the government over the scale of the Central Bank’s losses.
Mr Mikati said in a TV interview on Friday that his government will begin speaking to the IMF next week.
Reforms for cash
Forming a government capable of enacting reforms is the first step for Beirut to restart the negotiations with the IMF and other international lenders.
It was also the first key demand of an internationally backed road map set by French President Emmanuel Macron last September, to rebuild Beirut after the deadly port blast and to revive the economy.
For a year and a month, Lebanon’s political leaders bickered over ministerial shares of the Cabinet, halting any progress towards battling the crisis and gaining access to funds.
Lebanon was like a ship without a captain or sailors. Now that there is a crew, we have a chance, if not to reach the shore, at least to stop sinking
Saeb El Zein,
Banker
Parliamentarian Ali Darwish, of Mr Mikati’s Azm Movement, told The National that reform was now the government's number one priority.
“The first step for this government will be to work towards restoring people’s trust.
“The first shock will be a series of decisions that are in the people’s interests and reforms concerning the electricity file, fuel, the banking sectors and depositors’ money,” he said over the phone
International lenders and donor countries have asked for an overhaul of the state electricity provider Electricite du Liban (EDL), which swallows upwards of $1 billion per year despite providing one to four hours of electricity per day.
Lebanon has also reeled from shortages of petrol and medicines for months because the central bank is running low on foreign currencies needed to import subsidised products. Mr Mikati announced on Friday that the country can no longer afford to keep subsidies in place.
Curbing the crisis
While the new government may be able to curb the crisis, it cannot stop it in eight months or win the confidence of the Lebanese, said Fadi Ahmar, a Middle Eastern studies lecturer.
“This government lost the trust of the people before it was even named, because those who brought it to life are part of a despised political system,” he said.
Mr Mikati has already twice served as prime minister and is a billionaire businessman who is one of the richest Arab men in the world, Forbes has reported.
President Michel Aoun, who negotiated the formation of the new government, has been in power since 2016 and was a major figure of the country’s 15-year civil war.
Mr Ahmar says he is especially sceptical about the Mikati government’s ability to reform corrupt public institutions.
Shiite Parliament speaker Nabih Berri, Sunni leader Saad Hariri and Christian leader Gebran Bassil have used the public sector to grant jobs to their respective communities and win their support, he said.
“Why do we expect a government that follows the same sectarian politics that brought the country to its knees to actually save the country?”
With parliamentary elections coming in eight months, he expects politicians to work on short-term proposals that can garner popular support.
Parliamentary elections are crucial because they give political leaders legitimacy and determine who will succeed Mr Aoun as president. In Lebanon, Parliament votes for the president.
“They will work towards curbing the crisis, with short-term solutions, because it is in their electoral interests. But they cannot work to end the crisis because this will ruin their clientelistic networks,” he says.
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Oscars in the UAE
The 90th Academy Awards will be aired in the UAE from 3.30am on Monday, March 5 on OSN, with the ceremony starting at 5am
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UAE currency: the story behind the money in your pockets
One in nine do not have enough to eat
Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.
One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.
The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.
Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.
It is currently estimated that one in nine people globally do not have enough to eat.
On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.
Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.
Brief scoreline:
Liverpool 2
Keita 5', Firmino 26'
Porto 0
Spain drain
CONVICTED
Lionel Messi Found guilty in 2016 of of using companies in Belize, Britain, Switzerland and Uruguay to avoid paying €4.1m in taxes on income earned from image rights. Sentenced to 21 months in jail and fined more than €2m. But prison sentence has since been replaced by another fine of €252,000.
Javier Mascherano Accepted one-year suspended sentence in January 2016 for tax fraud after found guilty of failing to pay €1.5m in taxes for 2011 and 2012. Unlike Messi he avoided trial by admitting to tax evasion.
Angel di Maria Argentina and Paris Saint-Germain star Angel di Maria was fined and given a 16-month prison sentence for tax fraud during his time at Real Madrid. But he is unlikely to go to prison as is normal in Spain for first offences for non-violent crimes carrying sentence of less than two years.
SUSPECTED
Cristiano Ronaldo Real Madrid's star striker, accused of evading €14.7m in taxes, appears in court on Monday. Portuguese star faces four charges of fraud through offshore companies.
Jose Mourinho Manchester United manager accused of evading €3.3m in tax in 2011 and 2012, during time in charge at Real Madrid. But Gestifute, which represents him, says he has already settled matter with Spanish tax authorities.
Samuel Eto'o In November 2016, Spanish prosecutors sought jail sentence of 10 years and fines totalling €18m for Cameroonian, accused of failing to pay €3.9m in taxes during time at Barcelona from 2004 to 2009.
Radamel Falcao Colombian striker Falcao suspected of failing to correctly declare €7.4m of income earned from image rights between 2012 and 2013 while at Atletico Madrid. He has since paid €8.2m to Spanish tax authorities, a sum that includes interest on the original amount.
Jorge Mendes Portuguese super-agent put under official investigation last month by Spanish court investigating alleged tax evasion by Falcao, a client of his. He defended himself, telling closed-door hearing he "never" advised players in tax matters.
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Mercedes V250 Avantgarde specs
Engine: 2.0-litre in-line four-cylinder turbo
Gearbox: 7-speed automatic
Power: 211hp at 5,500rpm
Torque: 350Nm
Fuel economy, combined: 6.0 l/100 km
Price: Dh235,000
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Three stars
PROVISIONAL FIXTURE LIST
Premier League
Wednesday, June 17 (Kick-offs uae times) Aston Villa v Sheffield United 9pm; Manchester City v Arsenal 11pm
Friday, June 19 Norwich v Southampton 9pm; Tottenham v Manchester United 11pm
Saturday, June 20 Watford v Leicester 3.30pm; Brighton v Arsenal 6pm; West Ham v Wolves 8.30pm; Bournemouth v Crystal Palace 10.45pm
Sunday, June 21 Newcastle v Sheffield United 2pm; Aston Villa v Chelsea 7.30pm; Everton v Liverpool 10pm
Monday, June 22 Manchester City v Burnley 11pm (Sky)
Tuesday, June 23 Southampton v Arsenal 9pm; Tottenham v West Ham 11.15pm
Wednesday, June 24 Manchester United v Sheffield United 9pm; Newcastle v Aston Villa 9pm; Norwich v Everton 9pm; Liverpool v Crystal Palace 11.15pm
Thursday, June 25 Burnley v Watford 9pm; Leicester v Brighton 9pm; Chelsea v Manchester City 11.15pm; Wolves v Bournemouth 11.15pm
Sunday June 28 Aston Villa vs Wolves 3pm; Watford vs Southampton 7.30pm
Monday June 29 Crystal Palace vs Burnley 11pm
Tuesday June 30 Brighton vs Manchester United 9pm; Sheffield United vs Tottenham 11.15pm
Wednesday July 1 Bournemouth vs Newcastle 9pm; Everton vs Leicester 9pm; West Ham vs Chelsea 11.15pm
Thursday July 2 Arsenal vs Norwich 9pm; Manchester City vs Liverpool 11.15pm
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
The specs
Engine: 1.5-litre turbo
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Torque: 230Nm
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The Cairo Statement
1: Commit to countering all types of terrorism and extremism in all their manifestations
2: Denounce violence and the rhetoric of hatred
3: Adhere to the full compliance with the Riyadh accord of 2014 and the subsequent meeting and executive procedures approved in 2014 by the GCC
4: Comply with all recommendations of the Summit between the US and Muslim countries held in May 2017 in Saudi Arabia.
5: Refrain from interfering in the internal affairs of countries and of supporting rogue entities.
6: Carry out the responsibility of all the countries with the international community to counter all manifestations of extremism and terrorism that threaten international peace and security
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Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
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- Solo riders only, no passengers allowed
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The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
PROFILE OF STARZPLAY
Date started: 2014
Founders: Maaz Sheikh, Danny Bates
Based: Dubai, UAE
Sector: Entertainment/Streaming Video On Demand
Number of employees: 125
Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners
