Fears grow in Lebanon over Iran influence after Hezbollah, Amal end cabinet boycott

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By Najia Houssari

File photo: Lebanese Prime Minister Najib Mikati blasted Hezbollah chief Hassan Nasrallah onJanuary 3, 2022 for criticizing Saudi Arabia . “For God’s sake, have mercy on Lebanon and the Lebanese people and stop the hateful sectarian and political rhetoric”, he told him . Millions of Lebanese people depend on the remittances of about 500, 000 Lebanese of all religious sects including Shiites who earn their living in Saudi Arabia and the Gulf countries.

Beirut- A decision by Hezbollah and the Amal Movement to end a boycott of Lebanon’s Cabinet has led to speculation that Iran is making moves to control Lebanon’s political system.

Lebanese Forces MP Ziad Hawat said: “The order came from Tehran, so the ‘disruption duo’ ( Hezbollah and Amal are referred to as the Shiite duo which has been disrupting the cabinet by preventing it from holding any meetings) ) decided to set the Cabinet meetings free. These are the repercussions of external negotiations.”

He added: “The ‘disruption duo’ pawned the country to the outside will. But the parliamentary elections are coming and the hour of reckoning is upon us.”

Reacting to the announcement, Prime Minister Najib Mikati said that he would convene a Cabinet meeting as soon as the Finance Ministry had sent through a draft budget.

He added that the decision “aligns with his personal repeated calls for everyone to participate in assuming the national responsibility in a way that preserves the national pact, especially during these critical times the country is going through.”

Mikati’s office noted the need “to set a recovery plan to launch the negotiation process with the International Monetary Fund.”

Some political observers said that the two parties are facing a political stalemate and popular pressure accusing them of escalating crises.

Parliamentary elections are around the corner and the two parties “want to absorb people’s resentment before the date of the said elections next May.”

Other observers linked the decision by the two parties to “regional developments regarding the Vienna talks.”

They believe that “the decision to disrupt the Cabinet meetings served an external agenda, specifically an Iranian one, and that perhaps they ended their boycott to demonstrate flexibility in the complicated negotiations.”

The two parties said in their joint statement on Saturday: “We announce our agreement to participate in Cabinet meetings to approve the national budget and discuss the economic rescue plan, and all that concerns improving the living conditions of the Lebanese.”


They claimed that the decision came “following the acceleration of events and the escalation of the internal political and economic crisis to an unprecedented level, with the collapse of the Lebanese pound’s exchange rate, the decline of the public sector and the collapse of citizen income and purchasing power.”

Hezbollah and Amal also mentioned in their mutual statement that their boycott was due to “the unconstitutional steps undertaken by Judge Tarek Bitar in the Beirut Port blast case — the gross legal infringements, flagrant politicization, lack of justice and lack of respect for standardization.”

Instead of Bitar presiding over the case, the two parties have requested that a parliamentary panel should look into the matter.

This requirement, however, has not been executed yet, as the prime minister has refused to “interfere with judicial operations,” with his party firmly backing Bitar.

Phalanges Party MP Sami Gemayel said that Hezbollah and Amal “think they owe us a favor by ending the boycott.”

He added: “They paralyzed the country for a year to form the government they wanted and they boycotted it to prevent justice from prevailing in the ‘crime of the century.’

“The Lebanese people are the ones paying the price. There’s no work, no electricity, no heating, no bread and no medicine,” said Gemayel.

He added: “Accountability for humiliating people will be achieved through the elections.”

In his Sunday sermon, Maronite Patriarch Bechara Al-Rahi commented on the latest development regarding Cabinet sessions.

“In the democratic system, the procedural authority shall operate according to the powers conferred upon it by the constitution, without being subject to any illegal pressure or condition,” he said.

He warned against “resorting to the disruption of parliamentary and presidential elections — scheduled for next May and October — for suspicious personal objectives.

“The Cabinet disruption, the political escalation, the continued provocation, the use of justice to undermine the opponents and the inversion of priorities reassure neither the Lebanese people nor Lebanon’s brothers and friends.”

Internet services were disrupted in Lebanon on Sunday because of diesel shortages, adding another essential service to the list of casualties of the country’s economic crisis.

The Energy Ministry, however, categorically denied an Israeli Channel 12 report entitled “Washington approves an agreement to supply Lebanon with Israeli gas.”

The ministry said that “the gas supply agreement between the Lebanese government and the Egyptian government clearly states that the gas must come from Egypt, which owns large gas quantities.

“This gas will pass through Jordan, and then into Syria, which will in turn benefit from it.”

EURASIA REVIEW

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12 responses to “Fears grow in Lebanon over Iran influence after Hezbollah, Amal end cabinet boycott”

  1. The Lebanese Crisis: The Dark History of Middle Eastern Switzerland: Lebanon may never recover from the upheavals it has experienced. What happened to Middle Eastern Switzerland and what awaits it

    1. Lebanon once again turned out to be completely de-energized. Since the country’s two main power plants were shut down in the fall of 2021, access to electricity has become a real luxury. Vessels with fuel for Lebanese power plants refused to enter the ports without first receiving the entire required amount in dollars, a currency that Lebanon simply did not have left. Despite many agreements reached on fuel imports to Lebanon, there is still no real progress in dealing with the crisis. Looking at the chronicles of the golden era of Lebanon, when it was considered a strong bridge between the cultures of the West and the Middle East, one can only wonder how the once financial capital of the entire region reached its current state of complete collapse and instability

      1. For a long time, Lebanon was rightfully informally called the Switzerland of the Middle East due to its developed banking sector, which was trusted not only by its neighbors, but by the entire international community. Even with all the political and military upheavals that Lebanon has gone through over the past decades, including a devastating civil war that lasted more than 15 years – from 1975 to 1990, as well as a war with Israel in 2006, the small Arab country managed to maintain the course of its currencies at stable 1500 Lebanese lira to one dollar

        1. Hero and villain rolled into one

          All the merits of Lebanon’s economic miracle can be credited to one person, namely, the head of the Central Bank of Lebanon, Riad Salameh. As ironic as it may sound, he is also responsible for the sudden total collapse of the country’s economy, which the World Bank called one of the biggest crises in the world since the second half of the 19th century. Salameh was educated at the American University of Beirut and in 1973, at the age of 23, began his career with Bank of America’s Merrill Lynch investment company. Later, he became a member of the board at all and even chaired meetings of the International Monetary Fund and the World Bank. Being responsible for the destruction of the economy of an entire state of almost seven million people is not the first thing that comes to mind when you think of a person with such impressive achievements. During his time at Merrill Lynch, Salameh managed the personal fund of Lebanese billionaire Rafik Hariri, who shortly after his election as prime minister in 1992 appointed Salameh to the post of governor of the Central Bank, one might say, placing the Lebanese economy under his control.

          Salameh’s initial success in his new position, and hence the country’s financial stability, was reinforced by a number of factors. Lebanon, despite its small size, has managed to attract large foreign investment. Thus, after a devastating civil war, the oil-rich states of the Persian Gulf invested billions of dollars in the reconstruction of Lebanon. In the early 2000s, more than 76% of financial injections from abroad, Lebanon received from the Gulf countries. During the 2008 crisis, the currency was also replenished thanks to the huge number of Lebanese who lived abroad and sent money back to their families. All this, in addition to the constant flow of tourists, allowed Lebanon to quickly accumulate foreign exchange reserves and begin to successfully recover from the devastating 15-year civil war. Skyscrapers and buildings designed by world-famous architects such as Zaha Hadid were being built, and branded stores were filling up. For his merits in maintaining the exchange rate, despite all the shocks, Riad Salame received the unofficial title of a financial genius

          1. What could go wrong? Everything

            From a political point of view, the Lebanese government has a confessional character, where there is a division of posts along religious lines. This system was originally introduced to balance power in an attempt to avoid another civil war between Lebanon’s numerous religious groups, which include Shiites, Sunnis, Maronites, Druze, Alawites, as well as Orthodox Christians. The confessional model of power-sharing proved ineffective at the first appearance of serious problems. Instead of jointly solving the tasks set, the religious-political parties preferred to look for scapegoats, exchanging accusations, creating even more chaos among both politicians and ordinary Lebanese. Lebanon’s economic miracle was slowly fading away as massive infusions of cash from the Gulf countries halted due to the growing influence of the pro-Iranian Shiite party Hezbollah, forcing the country to look for new financial sources. In addition, the only country other than Israel that borders Lebanon, Syria, has itself plunged into ongoing civil war, leaving many long-established trade routes unsafe and Lebanon losing one of its most important allies.

            With the outbreak of unrest in Syria, another problem related to Syria emerged after that. Since the last century, a growing number of Palestinian refugees have been living in Lebanon, who have settled in special camps both in the backyards and sometimes in the center of Lebanese cities. These camps themselves resemble individual small towns with their own infrastructure and administrative apparatus. Palestinians in Lebanon are stateless and subject to a number of restrictions. For example, they are prohibited from owning real estate or from working in many areas such as education and medicine. The theme of the camps is especially acute for Lebanon, especially when armed clashes between various political groups break out there every now and then. By law, the Lebanese army has the right to enter the now Palestinian-Syrian refugee camps only in emergency situations. This is used by various criminals who, having committed a crime in Lebanese territory, flee to the camps in an attempt to escape justice. As a result, the camps have turned into a kind of ghetto, because, in fact, these are full-fledged autonomous regions with their own administration, which in no way contribute to establishing stability within the country

          2. Salame enters the stage again

            To get out of this situation, Salame came up with a plan that is somewhat similar to a financial pyramid, which French President Emmanuel Macron called nothing more than the famous “Ponzi scheme”. Under his leadership, the Central Bank raised interest rates higher and higher every year, thus attracting more and more new clients from all over the world. The fact that during this period in the rest of the world, due to the consequences of the global crisis, banks in other countries, on the contrary, lowered interest on their deposits, played into the hands of his scheme. However, given the high confidence rating of Lebanese banks, not everyone thought about what really stands behind record high rates.

            Due to the importance of the banking sector to Lebanon, the Central Bank, and therefore Salameh, was content with broad autonomy. A former stock market trader, Salame transferred his experience to the position of country’s financial manager. By investing budget money in high-risk projects, he pursued the goal of making high profits. Salameh was granted broad judicial immunity, which, as it turned out later, was misused by him. A judicial investigation was opened against him in The Hague, where he is accused of embezzlement, forgery and money laundering. He explained the presence of real estate and assets in Germany, the Netherlands and Belgium with his past achievements in the stock market. Despite the fact that Salameh’s financial fraud had long been known, the Lebanese government maintained his preferences, remembering his past merits and the economic success of Lebanon

          3. Last straw

            Desperate to get any real help from foreign partners, the Lebanese government turned its eyes towards its own citizens and imposed a tax on the use of the main social messenger in the country, WhatsApp. Enraged by this decision, people filled the streets of Lebanese cities demanding change. The country was engulfed in a general strike that lasted months and did nothing to promote positive economic change. With the onset of the coronavirus pandemic, Lebanon has lost its last source of income – tourism. With foreign exchange reserves nearly depleted, the banks took emergency action by freezing all accounts, depriving the Lebanese of all savings. The value of the Lebanese lira began to fall and fell almost 20 times in three years. Another large-scale shock for Lebanon was the explosion of ammonium nitrate in the port of Beirut, comparable in power to a small atomic bomb. Half of the center of the capital was destroyed. This event deprived many residents of the country of hope for a brighter future.

            After the explosion, basic things like water or electricity became hard to come by, forcing the middle class, who still had some means, to leave the country en masse. The flight of teachers and doctors from Lebanon has left many schools and medical institutions simply without staff. Due to the incompetence of politicians and widespread corruption, the explosion caused the death of more than 200 people, left over 300 thousand people homeless and caused damage of $ 15 billion. Lebanese dreams that Beirut could again become the capital of the most prosperous state were buried

          4. Current state of affairs

            After the tragedy in the port, the Lebanese government resigned, after which many believed that real changes could now begin. Their hopes turned out to be in vain, as it has not been possible to form a new government for more than two years. Lebanon cannot move further because French President Emmanuel Macron has set the formation of a government as a condition for providing financial assistance to Lebanon.

            An investigation was launched into the explosion in the port, but due to political intrigues, it is constantly changing its vector. Any attempt by the court to interrogate a witness sooner or later comes to a standstill. Although the judges who presided over the case were replaced, the politicians continued to accuse each of them of being biased and following the interests of one party or another. After the resignation of Saad Hariri, the post of prime minister was empty for almost two months. The long wait ended with the appointment of billionaire Najib Mikati, who was already Lebanese prime minister and is part of the old political elite involved in the crisis. Although he managed to form some kind of government, the Lebanese had no illusions or hopes. And the lack of confidence was soon justified. During the reign of Mikati, the exchange rate fell even lower, prices still continued to rise, and power outages continue to this day.

            As political and religious parties threaten to sue, downtown Beirut is the scene of a firefight over petrol lines, days and nights pass in absolute darkness, and bank accounts are frozen, Lebanon may never recover and forever turn from the Switzerland of the Middle East into another failed state for which the region is so famous. During the protests, the Lebanese demanded the resignation of every politician and the formation of a new government, consisting of completely new people, and the main slogan at that time was “Everyone means everyone.” Below is a photo from the protests, where the Lebanese did not yet know that all the politicians would still retain their posts, and the only ones who would be left with nothing were the protesters themselves

  2. Adam Yonatan Ben Yoel Avatar
    Adam Yonatan Ben Yoel

    Lebanese have autonomy but Hezbollah has the real sovereignty.

  3. Adam Yonatan Ben Yoel Avatar
    Adam Yonatan Ben Yoel

    Whenever you’re ready, there’s an open offer for a peace agreement, even one better than the 1983 agreement which was abrogated under Syrian pressure.

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