Beirut, Jan. 13 (BNA) The Austrian Foreign Minister said, on Wednesday, that the European Union wants to help Lebanon escape economic collapse, but only if the country’s leaders clean up Beirut’s affairs.
Alexander Schallenberg told reporters after meeting his Lebanese counterpart in Beirut that Lebanon must reach an agreement with the International Monetary Fund, move forward with an investigation into the August 2020 port explosion and restructure the badly damaged banking sector, according to the Associated Press. AP) reported.
Lebanon’s economic crisis, which began in 2019, is rooted in decades of corruption and mismanagement by the small country’s political class. Disagreements between rival groups have so far prevented economic reforms demanded by the international community in order to unlock billions of dollars in investment.
“Frankly, we are very concerned about what is going on in the country,” Schallenberg said. “Our mission is to help us help you.”
“Austria will continue to stand by the Lebanese people, but what we want to see is a move by Lebanon,” he said.
The World Bank has described the economic crisis in Lebanon as one of the worst in the world since the 1850s. Tens of thousands of people have lost their jobs since October 2019, and the Lebanese pound has lost more than 90% of its value. This leaves nearly 80 percent of the population of 6 million, including 1 million Syrian refugees, in poverty.
Amid the crisis, the Lebanese government has not met since October 12. Hezbollah and the Amal group affiliated with Parliament Speaker Nabih Berri demanded the dismissal of the judge leading the investigation into the port explosion. The August 4, 2020 explosion in downtown Beirut killed more than 200 people.
“The solutions are in the hands of the leaders of this county,” Schallenberg said, adding, “They are the only ones who can get this country and the people out of this.”
Lebanese Foreign Minister Abdullah Bouhabib said the government is working on reforms, including in the electricity sector, which is riddled with corruption. Bouhabib added that he hopes Beirut will reach an agreement with the International Monetary Fund by the end of next February.
Schallenberg said there should be an agreement between Lebanon and the International Monetary Fund, “so that we can provide economic assistance as the European Union.”
Later Wednesday, Schallenberg met with President Michel Aoun, who told the Austrian official that there was “good faith” to hold talks with the International Monetary Fund in order to push Lebanon beyond the crisis.
The Austrian Foreign Minister said that his country will continue to help Syrian refugees in Lebanon with the aim of eventually returning them to their country.
Schallenberg also visited Austrian peacekeepers deployed in southern Lebanon near the border with Israel.
MI