Decisive Week Ahead for Lebanese Government Formation: Hariri, According to Reuters

BEIRUT (Reuters) – This week is crucial for the efforts to establish a government in Lebanon, as it represents a final opportunity to overcome the ongoing deadlock, according to prime minister-designate Saad al-Hariri.

The formation of a government, nearly nine months post-election, is considered a vital initial step toward restoring confidence in the economy, with political leaders warning of an imminent crisis.

The International Monetary Fund has urged immediate fiscal reforms to tackle the country’s significant public debt, which stands at approximately 150 percent of GDP.

Hariri expressed cautious optimism, stating, "Matters are positive and will become clear within two days… This week is decisive, positively or negatively." He emphasized that the current situation is unsustainable and described the week as a last chance to address the issues and initiate government formation.

Members of parliament affiliated with President Michel Aoun’s Free Patriotic Movement indicated that a government could be established this week if all parties make necessary concessions. However, FPM’s Cesar Abi Khalil cautioned that without such cooperation, "next week we will have something else to say… because then it will be clear that there is an intention to obstruct the birth of the government."

On Saturday, the leader of the influential Iran-backed Hezbollah movement remarked on the "extraordinary efforts" being made to form the government, highlighting two main obstacles: the inclusion of six Sunni lawmakers in the cabinet and the allocation of government portfolios among political factions.

Recently, credit ratings agency Moody’s downgraded Lebanon’s sovereign debt, citing the uncertainty surrounding government formation, and Lebanese bonds have faced declines in recent weeks.

Lebanon is among the most indebted nations globally, and the finance minister has warned that the country is in an economic crisis that risks evolving into a financial crisis, with hopes of it not escalating into a monetary one.