Hariri agrees to economic reforms after fourth day of Lebanon protests


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Lebanese Prime Minister Saad Hariri agreed on Sunday to a package of reforms to ease an economic crisis that has sparked protests against corruption.

Mr Hariri, who is leading a coalition government mired by sectarian and political rivalries, on Friday gave his feuding partners 72 hours to agree to the reforms, hinting he might otherwise resign.

He accused his rivals of obstructing budget measures that could unlock $11 billion (Dh40.4bn) in western donor pledges and help to avert economic collapse.

Reports suggest politicians were concerned that Mr Hariri planned to announce his resignation, leading to a collapse in government that would push the country into the unknown.

There are few other viable Sunni politicians who could feasibly take up the position if Mr Hariri stood down.

Central Beirut on Sunday was for a fourth day flooded with protesters gathering to keep the pressure on the Lebanese government.

Tens of thousands took to the streets in central Beirut and in cities from Tripoli in the north to Tyre in the south.

Protesters unfurled a huge Lebanese flag in central Beirut’s Riad Al Solh Square.

It followed a night of revelry at festive rallies across the country. A DJ played to the crowd in Tripoli while demonstrators in Beirut danced dabke, a mixture of circle and line dancing.

Voice of Lebanon radio reported disputes in south Lebanon between protesters and supporters of the Shiite majority Amal party, who the demonstrators accused of threatening rallies with weapons.

Protests there continued on Sunday but without mentions of political leaders, reportedly on the direction of Amal officials.

Clashes rivals other than authorities have been relatively rare elsewhere in the country.

At the weekend, police used water cannon and batons to clear protests in Beirut.

Schools and universities announced they would remain closed on Monday, after a similar announcement by the Lebanese Association of Banks, which said branches would remain shut.

The American University of Beirut on Sunday said that no exams would be held for at least a week after classes resume.

They closed on Friday after the first night of mass rallies in Beirut and across the country sparked by a Cabinet session on new taxes for the 2020 budget, which included a charge on WhatsApp and other internet calling services.

People from across the political spectrum have joined a rare nationwide demand for the resignation of the government and action to address the economic crisis and lack of services.

"I didn't expect people from the country's north, south and Beirut to join hands and like each other," said Sahar Younis, 32, a worker with a non-government organisation.

"The protests have brought together everyone and this has never happened before.

A woman sits on top of a building overlooking Nejmeh square as its entrance is blocked by the army during an anti-government protest in downtown Beirut. Reuters
A woman sits on top of a building overlooking Nejmeh square as its entrance is blocked by the army during an anti-government protest in downtown Beirut. Reuters

The leader of the Christian-majority Lebanese Forces party, Samir Geagea, announced on Saturday evening that his four ministers were standing down.

Mr Geagea said that the government lacked any intention of carrying out reforms.

He  suggested that the Cabinet members from Druze leader Walid Jumblatt's Progressive Socialist Party would follow suit, but this was denied by Industry Minister Wael Abou Faour.

Mr Abou Faour said on Sunday that  he and the PSP's Education Minister, Akram Chehayeb would not leave the government.

The prime minister is urging coalition partners to back his economic plan, but it is unclear if proposals to fix the country’s financial crisis could ease the anger on the streets.

On top of years of stagnant growth, high unemployment, poor public service provision, an internet speed that ranks among the world's slowest and crumbling infrastructure, Lebanon is in an acute financial crisis and a shortage of US dollars.

Officials and economists also predict a currency devaluation or a debt default within months if it fails to shore up its finances.

A demonstrator wears a Guy Fawkes mask during an anti-government protest in the southern city of Nabatiyeh, Lebanon. Reuters
A demonstrator wears a Guy Fawkes mask during an anti-government protest in the southern city of Nabatiyeh, Lebanon. Reuters

Banks have stopped ATMs issuing the American currency and limited the amount that can be withdrawn in branches.

This is of particular concern in a country where the Lebanese pound can be used interchangeably with the greenback and services from bakers to petrol stations warn of shortages.

The International Monetary Fund said last week that Lebanon's crisis required tough austerity measures such as tax rises and levies on fuel, which politicians have publicly vowed not to take.

Lebanon's economy registered 0.3 per cent growth last year. The IMF said the reforms were needed to stem a growing deficit and public debt it forecasts to reach 155 per cent of GDP by the end of the year. It is already one of the world's highest.

But protesters say the government is looking at new taxes without addressing wasteful spending or tax avoidance by big business and banks.

Ending rampant corruption is a central demand of the protesters, who say the country's leaders have enriched themselves for decades through favourable deals and kickbacks.

"All of the leaders should be put under house arrest and be held accountable to return the money they stole from the state so Lebanon can get back on its feet," said Antoine Zahli, 43, a pharmacist who was among the protesters in downtown Beirut.

Student Charbel Antoun, 17, said: "We want to stay in Lebanon to build our future but if these corrupt politicians stay here what future will be left for us?"

The embassy of Saudi Arabia confirmed on Sunday that it had moved 300 tourists from Lebanon after calling on all of its nationals to leave because of the protests.

The embassy said the 300 were escorted to Beirut’s international airport by security services to ensure their safety.

The UAE Ministry of Foreign Affairs and International Co-operation warned UAE citizens not to travel to the country until further notice.

Khalid Belhoul, undersecretary at the ministry, advised Emiratis in Lebanon to contact the UAE embassy in Beirut to arrange for their safe return home.

It's up to you to go green

Nils El Accad, chief executive and owner of Organic Foods and Café, says going green is about “lifestyle and attitude” rather than a “money change”; people need to plan ahead to fill water bottles in advance and take their own bags to the supermarket, he says.

“People always want someone else to do the work; it doesn’t work like that,” he adds. “The first step: you have to consciously make that decision and change.”

When he gets a takeaway, says Mr El Accad, he takes his own glass jars instead of accepting disposable aluminium containers, paper napkins and plastic tubs, cutlery and bags from restaurants.

He also plants his own crops and herbs at home and at the Sheikh Zayed store, from basil and rosemary to beans, squashes and papayas. “If you’re going to water anything, better it be tomatoes and cucumbers, something edible, than grass,” he says.

“All this throwaway plastic - cups, bottles, forks - has to go first,” says Mr El Accad, who has banned all disposable straws, whether plastic or even paper, from the café chain.

One of the latest changes he has implemented at his stores is to offer refills of liquid laundry detergent, to save plastic. The two brands Organic Foods stocks, Organic Larder and Sonnett, are both “triple-certified - you could eat the product”.  

The Organic Larder detergent will soon be delivered in 200-litre metal oil drums before being decanted into 20-litre containers in-store.

Customers can refill their bottles at least 30 times before they start to degrade, he says. Organic Larder costs Dh35.75 for one litre and Dh62 for 2.75 litres and refills will cost 15 to 20 per cent less, Mr El Accad says.

But while there are savings to be had, going green tends to come with upfront costs and extra work and planning. Are we ready to refill bottles rather than throw them away? “You have to change,” says Mr El Accad. “I can only make it available.”

Brief scores:

Toss: Sindhis, elected to field first

Kerala Knights 103-7 (10 ov)

Parnell 59 not out; Tambe 5-15

Sindhis 104-1 (7.4 ov)

Watson 50 not out, Devcich 49

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Part three: an affection for classic cars lives on

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The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

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Saudi Arabia

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Tearful appearance

Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday. 

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow. 

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.

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Born: Mukalla, Yemen, 1979

Education: UAE University, Al Ain

Family: Married with two daughters: Asayel, 7, and Sara, 6

Favourite piece of music: Horse Dance by Naseer Shamma

Favourite book: Science and geology

Favourite place to travel to: Washington DC

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The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

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Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

The Bio

Favourite holiday destination: Either Kazakhstan or Montenegro. I’ve been involved in events in both countries and they are just stunning.

Favourite book: I am a huge of Robin Cook’s medical thrillers, which I suppose is quite apt right now. My mother introduced me to them back home in New Zealand.

Favourite film or television programme: Forrest Gump is my favourite film, that’s never been up for debate. I love watching repeats of Mash as well.

Inspiration: My late father moulded me into the man I am today. I would also say disappointment and sadness are great motivators. There are times when events have brought me to my knees but it has also made me determined not to let them get the better of me.

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