Lebanon heads for showdown as protests gain momentum

Bloomberg

Lebanon is headed for a showdown after the government suffered its first resignations, as the country enters its fourth day of demonstrations in the largest such unrest in years.
Four ministers from a major Christian party, the Lebanese Forces, stood down as Prime Minister Saad Hariri said he was working around the clock to come up with a plan that would address corruption and carry out urgent reforms. Hariri issued a veiled threat to resign as he gave his government 72 hours to back reform measures and rebuild confidence.
Meanwhile, protesters continued to block roads with burning tires and cement blocks early Sunday morning, with many trickling back to the capital, Beirut, and gather outside the Grand Serail, the headquarters of the prime minister.
“What they’re offering now is too little too late,” said Sami Nader, head of the Beirut-based Levant Institute.
The government is racing to find a way out of a financial crisis and appease the tens of thousands angry at officials for failing to steer the debt-laden country out of an impending economic meltdown. Banks will remain shuttered for another day on Monday, threatening
to pile more pressure in a country that’s already experienced shortages of foreign currency.
Hariri’s proposal envisions
a dramatic reduction of the budget deficit to zero in 2020 — compared with almost 12% of gross domestic product in 2018, according to local media.
Parties represented in the government have agreed to the premier’s blueprint, which the finance minister said requires no additional taxes for next year as the banking industry would contribute to reducing the cost of debt servicing.
Iranian-backed Hezbollah and its allies, primarily the Free Patriotic Movement lead by Foreign Minister Gebran Bassil, want to preserve the government, warning that the alternative would only lead to chaos. The Hezbollah coalition holds a majority in parliament and the cabinet.
Observers doubt that the planned road map would ease tension on the streets given the magnitude of the demonstrations that have spread to regions known for their loyalty to political leaders such as the parliamentary speaker, Nabih Berri, and Hezbollah’s chief Hasan Nasrallah.
Protests began last week and quickly spread nationwide after the government said it would impose a fee on WhatsApp calls, a decision it later retracted.
Donors and investors say the government has been slow in carrying out urgent fiscal and structural reforms needed to unlock billions in grants and loans from international donors to revive the stagnant economy.
Protesters have filled up the streets of the capital, insisting their demonstration is peaceful and nonsectarian and would continue until the fall of the government. Fistfights erupted in the southern town of Tyre and Aley in Mount Lebanon, where protesters clashed with supporters of Berri and Druze leader Walid Jumblatt.
Berri, who has been house speaker for nearly 28 years, is the head of one of the largest Shiite parties in the country and is a longtime ally of Hezbollah.