Power struggle at core of Lebanese political crisis, says EU's Josep Borrell

Foreign policy chief speaks as Lebanon teeters on verge of total financial collapse

Lebanese Prime Minister-Designate Saad Hariri, left, greets European Union foreign policy chief Josep Borrell with a fist bump, in Beirut, Lebanon, on Saturday. Image: AP

A struggle for power and strong mistrust is behind the fight between Lebanese political leaders and the deadlock over forming a government, the EU’s foreign policy chief said on Sunday.

“It is clear a fight for the distribution of power and I have to say there is also strong mistrust,” Josep Borrell said before leaving Beirut.

“It is difficult to get an agreement between people who don’t trust each other.”

A power struggle has emerged between prime minister-designate Saad Hariri, named to the post in October, and President Michel Aoun and his son-in-law Gebran Bassil, who leads the largest bloc in Parliament.

The leaders argued over the shape of the government while the country’s economic problems worsened.

Mr Borrell was in Lebanon for two days where he met with political, security and military leaders. He delivered a strong message that forming a government is a matter of urgency as the small country is on the verge of total financial collapse.

Lebanon’s economy has contracted by more than 20 per cent in 2020, and poverty has deepened with more than 55 per cent of the population living below the poverty line.

The national currency has tumbled, losing nearly 90 per cent of its value to the dollar.

The World Bank said Lebanon’s crisis, caused by decades of corruption and mismanagement, is one of the worst the world has seen in more than 150 years.

Mr Borrell said European countries were considering imposing sanctions against Lebanese politicians, who he blamed for blocking the formation of a government.

He said the make-up of the new government must be agreed on by Mr Aoun and Mr Hariri.

It must have the political support it needs to operate in such difficult conditions, Mr Borrell said.

He said a new government could then reach a deal with the International Monetary Fund, which would then allow for EU assistance.

“A ship in the middle of a storm needs a captain," Mr Borrell said. "It needs officers of different departments of the ship. If not the ship will sink.

“You need a government with technical capacities and political support to implement the decisions, take decisions, and these decisions will not be easy to take.”

Lebanese media have reported that France and the EU are putting together proposals for possible travel bans and freezes on the assets of some politicians.

Mr Borrell said the sanctions were only one way to exert political pressure on Lebanese politicians for an agreement.

“I am very much afraid that the crisis will be producing very negative effects on the stability of the country," he said.

Lebanon defaulted on paying back its debt for the first time in March, while talks with the IMF on a bailout package stopped last year.

The crisis has been the biggest threat to Lebanon’s stability since the 1975-1990 civil war.