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Germany urges end to Lebanon's political paralysis

August 4, 2021

German Foreign Minister Heiko Maas said lawmakers could face EU sanctions unless they moved to form a government and enact key economic reforms. Lebanon is currently gripped by its worst economic crisis in decades.

https://p.dw.com/p/3yVUl
The Gesture" by Lebanese artist Nadim Karam made from debris from the blast at the port of Lebanon's capital Beirut.
The port of Beirut was rocked by an explosion exactly one year ago that killed more than 200 people.Image: Houssam Shbaro/AA/picture alliance

German Foreign Minister Heiko Maas warned Lebanese lawmakers on Wednesday that they must end the country's political paralysis or risk EU sanctions.

Lebanon has had a caretaker government for more than a year and is still reeling from a massive explosion in the port of Beirut last August that killed more than 200 people and caused billions of dollars in damage.

Last month, Lebanon's then Prime Minister-designate Saad Hariri gave up trying to form a new government after nine months of deadlock over its make-up.

"There is still no progress whatsoever in the formation of the government or in the implementation of urgently needed reforms," Maas said in a statement to mark the one-year anniversary of the blast.

"In view of the dramatically worsening economic situation, this is irresponsible."

On Friday, the EU finally agreed to set up a new sanctions regime that could target Lebanese politicians if the bloc was unhappy with progress there.

Heiko Maas in New York
Germany's foreign minister warned Lebanese politicians that they could face EU sanctions unless they move to end the country's political and economic woesImage: Xander Heinl/photothek/picture alliance

Maas said it was "right" that the EU would "maintain pressure on political decision-makers."

But Berlin's top diplomat vowed to continue supporting Lebanon's civil society and pledged more humanitarian aid, saying Germany was the country's second-largest bilateral donor.

Why is Lebanon's economy struggling?

The explosion on August 4, 2020, was caused by 2,700 tons of ammonium nitrate that had been stored in the port for years.

It came amid Lebanon's worst economic crisis for decades which has seen shortages of medicine, electricity and fuel.

The country defaulted on its debt last year and the value of its local currency collapsed by 85% over the past 12 months.

A woman holds up a portrait of her son who was killed in the Beirut explosion
Many Lebanese have taken to the streets over the government's handling of the economy and the inquiry into last year's explosionImage: Bilal Hussein/AP Photo/picture alliance

A report by the World Bank in July said the economic crisis could rank as one of the world's worst in nearly 150 years.

Researchers at the Washington D.C.-based institution predicted that Lebanon's economy will shrink by close to 10% in 2021 and warned there is "no clear turning point in the horizon."

"Policy responses by Lebanon's leadership to these challenges have been highly inadequate," the report said.

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jf/nm (AFP, dpa, EPD)