Date: Jan 29, 2019 Source: The Daily Star Europe ‘concerned’ for Lebanon’s economy Joseph Haboush| The Daily Star BEIRUT: Growing European concern over Lebanon’s failure to form a new government Monday rang in the start of what is expected to be a “decisive week” in the process, now in its ninth month of deadlock. Following a meeting with Prime Minister-designate Saad Hariri, EU Ambassador to Lebanon Christina Lassen “expressed concerns that the continued absence of a government is negatively affecting the economic situation and the lives of Lebanese people,” according to a tweet from the EU. “EU is ready to support #Lebanon in implementing reforms and anti-corruption measures,” another tweet said. After Lassen’s meeting with Hariri at his Downtown Beirut residence, a statement released by her office said the two exchanged views on Lebanon’s economic situation and efforts to follow up on the CEDRE conference that was held in Paris last year. Lassen also briefed Hariri on preparations underway for the upcoming Brussels III Conference. At a dinner hosted in his honor later in the evening, Hariri said that Lebanon now has an opportunity to take advantage of CEDRE to overcome financial challenges. “We can advance [as a country] once the new government is formed,” Hariri said. “Reforms are the biggest challenge for the new government, we have to fight corruption and this is a difficult fight but we insist on it,” he added. After six pro-Hezbollah Sunni MPs blocked Hariri’s efforts to form a new government, the premier-designate last week launched a new round of talks aimed at finding a breakthrough. During a short visit to Paris over the weekend, Hariri met with Free Patriotic Movement leader Gebran Bassil three times and Lebanese Forces head Samir Geagea once. But Hariri has been tight-lipped on the outcome of his latest talks, according to a source close to him. “This week is a decisive week though - that doesn’t necessarily mean it’s negative,” the source told The Daily Star. Hariri has five options ahead of him: form a government, continue to wait until the relevant sides make concessions, submit a lineup to President Michel Aoun and wait for him to accept or reject it, step down as prime minister-designate, or reactivate the caretaker government to discuss pressing matters such as the economic situation and the passage of the 2019 national budget. A presidential palace source said that “nothing additional” came out of Hariri’s meetings in Paris. Meanwhile, the six pro-Hezbollah Sunni MPs from outside Hariri’s Future Movement, who refer to themselves as the Consultative Gathering, continued to place blame on the premier-designate for the delay. “He is responsible for refusing to negotiate with the Consultative Gathering and preferred to go to Paris for discussions,” Jihad al-Samad, on of the MPs, told Voice of Lebanon (93.3FM). Samad reiterated his group’s demand for a representative in the new government, whom he said should “be from the Sunni share ... and not from the prime minister’s or president’s shares.” Lebanon appeared to be on the verge of a new government near the end of last year, before the six MPs reneged on their agreement to allow Jawad Adra to represent them. Adra wanted to be independent and not beholden exclusively to the MPs’ interests, while Aoun wanted Adra to be part of his and the FPM’s combined Cabinet share. Ongoing reshuffling of the distribution of Cabinet portfolios also remains an unresolved obstacle to the formation. Bassil is demanding the Environment Ministry for the FPM, despite a previous agreement that granted it to Speaker Nabih Berri’s Amal Movement. Berri is willing to give up the ministry to Bassil, if the Amal leader gets the Culture or Industry ministry in return. However, these two ministries have been allotted to the Lebanese Forces and Progressive Socialist Party, respectively. The LF and PSP are reportedly steadfast in refusing to give up either. Meanwhile, a report in Israeli newspaper Maariv claimed that France has stopped military aid to the Lebanese Army. According to the report, French Foreign Minister Jean-Yves Le Drian told Israeli President Reuven Rivlin that weapons and ammunition would be halted to the Army and that French President Emmanuel Macron cancelled a visit to Beirut. However, LBCI reported that Macron previously told Lebanese officials he would not visit until a new government was formed. According to the diplomatic source cited by LBCI, a number of French officials will accompany Macron in order to sign a number of bilateral deals and treaties; therefore, he would wait until there was a new Lebanese government. The presidential palace source dismissed the rumors, and confirmed to The Daily Star that the Lebanese government had not been informed of any changes in French aid. Separately, Berri called for Parliament’s secretariat to meet Wednesday to schedule a legislative session, according to a statement from his office. The speaker told local daily An-Nahar that he would not “stand [by] and watch the country collapse.” Parliament Secretary-General Adnan Daher told The Daily Star it was not yet clear when the legislative session itself would be held. He said this would become clear Wednesday, when the agenda for the session would also be decided on. Among the items likely to be on the legislative agenda is the 2019 draft state budget. Berri reiterated to An-Nahar the urgent need for the budget to be passed. Cabinet must meet to approve the draft state budget before sending it to Parliament. Berri has called for the caretaker Cabinet to meet to endorse the budget given the monthslong government formation delay.