Western powers seeking to rescue Lebanon's teetering economy have given the country's leaders an ultimatum: there will be no bailout unless they form a credible government to overhaul a bankrupt state – and do it quickly.
France, the United States and other donors who repeatedly came to Lebanon's aid since the 1975-90 civil war are losing patience with its politicians, many of them familiar faces in charge during the country's descent into economic crisis.
Large scale protests erupted against the ruling elite last year as people blamed them for looking after vested interests while national debts mounted. The pandemic further strained resources and a huge port blast in August destroyed large areas of Beirut.
As dollars run low, basic goods including some medicines are in short supply and more people in Lebanon are falling below the poverty line.
French President Emmanuel Macron, a natural ally given Lebanon is a former French colony, rushed to the city after the explosion and tried to convince politicians to introduce at least partial reforms to confront the emergency.
We're still dealing with government formation as if these are normal days
But rival factions are still mired in turf wars, and Lebanon has not formed a new government since the last one was brought down by the blast and its aftermath. As in previous deadlocks, each side blames the other.
In talks in Beirut last week, Patrick Durel, an adviser to Mr Macron on the Middle East and North Africa, made clear that while Paris remains committed, "we will not bail them out unless there are reforms", according to two sources who were present.
"Those times have changed", he said.
A western diplomat said France was still trying to host a planned conference on rebuilding Beirut by the end of November, but doubts remained.
"There are no developments," the diplomat said. "The Lebanese politicians are back to their way of doing business and what's worrying is the complete disregard for the population."
Tough conditionality
Dorothy Shea, the US ambassador to Lebanon, speaking to an online conference of the CSIS think tank in Washington on Friday, said the United States "gets that Lebanon matters" and that "avoiding state failure … has to be first and foremost".
But she insisted that said the donor countries "can't really want it more than they do".
Ms Shea said there would be no bailout without reforms.
"We got smart," she said, adding there would be "a step-by-step approach and no free lunch".
Saad Hariri, the Sunni prime minister-designate under the country's sectarian power-sharing agreement, is struggling to form a cabinet.
Some sources say efforts have been complicated by recent US sanctions against Gebran Bassil, the son-in-law of President Michel Aoun who heads the Free Patriotic Movement (FPM), Lebanon's largest Christian party.
Mr Bassil was hit with sanctions on corruption charges and ties with the Iran-backed paramilitary group Hezbollah, Lebanon's most powerful party and a strike-force for Tehran across the region, which Washington deems a terrorist organisation.
He denies the corruption charges.
The main sticking point, official sources say, is Mr Aoun and Mr Bassil's insistence on nominating Christian ministers in an 18-member government. Mr Hariri wants all ministers to be specialists and not affiliated to political parties.
A source close to the talks said some involved identified Mr Bassil as the main obstacle to a cabinet being formed. Mr Bassil denies the accusations, saying that since others were able to nominate ministers, his party was entitled to the same.
A source familiar with Hezbollah's thinking said that Mr Durel asked the group to try to persuade Mr Bassil, a close ally, to soften his stand, but that Hezbollah was reluctant to exert further pressure on him as it could weaken him further.
Hardened positions
Several sources said the current standoff was suicidal for the country, which is running through its foreign reserves fast. They are estimated at only $17.9 billion.
Because of the sanctions, which US ambassador Dorothy Shea acknowledged were part of the outgoing Donald Trump administration's "maximum pressure" campaign against Iran, Tehran and allies are opting to wait until Mr Trump leaves office.
But some officials in Lebanon warned against playing the waiting game.
"The message from the French now is clear: no government, no reform, then au revoir, merci," said a senior political source familiar with the talks.
"And if the French wash their hands of this, then who will still look at us? The Gulf? The US? Nobody.
"At the end of the day, they don't know how to deal with exceptional times and challenges … We're still dealing with government formation as if these are normal days."
Ms Shea said donors had to "stick to their guns", otherwise the political elite would not take them seriously.
"If they don't feel the sense of urgency to form a government how can we keep the pressure on them?" she said. "They look at us and say 'try to make us reform – It'll be fun watching you'."
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
'How To Build A Boat'
Jonathan Gornall, Simon & Schuster
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
MATCH INFO
Manchester United 1 (Rashford 36')
Liverpool 1 (Lallana 84')
Man of the match: Marcus Rashford (Manchester United)
Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
JUDAS AND THE BLACK MESSIAH
Directed by: Shaka King
Starring: Daniel Kaluuya, Lakeith Stanfield, Jesse Plemons
Four stars
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Third Test
Day 3, stumps
India 443-7 (d) & 54-5 (27 ov)
Australia 151
India lead by 346 runs with 5 wickets remaining
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
Company Profile
Company name: Fine Diner
Started: March, 2020
Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka
Based: Dubai
Industry: Technology and food delivery
Initial investment: Dh75,000
Investor: Dtec Startupbootcamp
Future plan: Looking to raise $400,000
Total sales: Over 1,000 deliveries in three months
UAE currency: the story behind the money in your pockets
The specs
Engine: 2.2-litre, turbodiesel
Transmission: 6-speed auto
Power: 160hp
Torque: 385Nm
Price: Dh116,900
On sale: now
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
The 10 Questions
- Is there a God?
- How did it all begin?
- What is inside a black hole?
- Can we predict the future?
- Is time travel possible?
- Will we survive on Earth?
- Is there other intelligent life in the universe?
- Should we colonise space?
- Will artificial intelligence outsmart us?
- How do we shape the future?
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
Full Party in the Park line-up
2pm – Andreah
3pm – Supernovas
4.30pm – The Boxtones
5.30pm – Lighthouse Family
7pm – Step On DJs
8pm – Richard Ashcroft
9.30pm – Chris Wright
10pm – Fatboy Slim
11pm – Hollaphonic
If you go…
Emirates launched a new daily service to Mexico City this week, flying via Barcelona from Dh3,995.
Emirati citizens are among 67 nationalities who do not require a visa to Mexico. Entry is granted on arrival for stays of up to 180 days.
