Lebanon

Monopoly and Price Chaos in Lebanon as Budget Heads to New Parliament

Monopoly and Price Chaos in Lebanon as Budget Heads to New Parliament

The newspaper "Al-Joumhouria" writes: In a chaotic situation like the one Lebanon has been experiencing for over two years, it is not surprising at all that internal crises follow under any title or detail. The natural result of this is more deterioration, weakness, and decay in the state's structure, adding further burdens and pressures that exhaust the Lebanese, stripping them of what little capacity they have left to endure. This occurs amid a crisis sustained by the absence of wise management of the country and the loss of the state's authority and public trust in its ability to provide even one remedy—not to heal the country, but at least to alleviate the pain of the Lebanese.

Lebanese people, as the entire world witnesses, are in a struggle for survival, caught in a never-ending spiral; they go to bed with one crisis and wake up to an even graver and more painful one. The wheel of crises continues to rotate, worsening their conditions, while those in power are in a state of utter relaxation, engaged in a series of meetings, consultations, and committee formations, with no tangible decisions arising from them. In parallel, a political framework stands on the edge of the crisis, conflicted amongst themselves, focusing on elections, and opening fronts for settling scores and bitter disputes over a parliamentary seat in this electoral district or that.

The "new masters" have taken control, including crisis thieves, purveyors of misinformation and rumors, opportunists profiting from people's pain, and experts in exploitation through monopoly and price hikes. The clouds have gathered over Ukraine, but it has rained in Lebanon for no apparent reason. These "new masters" have turned this country as if it were on the Ukrainian border, and its life ostensibly tied to it, with doors wide open to the repercussions of the ongoing war there. Deliberately harmful statements are broadcast from some media outlets and social networks, instilling panic in people and warning of a significant threat to food security in this country, accompanied by shortages of wheat, fuel, medicine, and all essentials.

With the press of a button, traders closed their warehouses, and the will to control and monopolize the market overshadowed the country and its people. Prices skyrocketed, and basic consumer goods disappeared from the market. If they were available, they came at exorbitant prices, and the long lines of humiliation reappeared in front of gas stations. A canister of gasoline or diesel now equals an employee's salary and is poised to soar higher. With the constant chatter about wheat reserves being sufficient only for a limited time and the search for alternate sources, contingent on the provision of funds for their purchase, the Lebanese are promised that similar queues will soon form outside bakeries, along with predictions of rising bread prices. How can a citizen endure these burdens?

The discussions of external risks and negative implications threatening Lebanon have become a ridiculous joke. The winds blowing from within are much stronger and harsher, evidenced by the ongoing war against people's livelihoods. Before addressing external conditions, we must address the internal winds that continue to whip against an authority that claims to have its eyes wide open while blind to what has unfolded in the country and its people. While the crisis is indeed deep, and this authority's weakness in facing it is acknowledged, it does not absolve it from shaking off its prolonged political lethargy, fulfilling its minimal responsibilities, and mobilizing its ministries, institutions, and agencies to provide viable alternatives. It must utilize its military, security, and judicial arms to deter the new warlords, withdraw protective measures from them, imprison them, and lift the constraints they impose on the Lebanese people's basic livelihoods.

Politically, no voice rises above that of the parliamentary elections, and this week is expected to be decisive regarding the final picture of official candidacies for this deadline at the end of the last week for submitting nominations, which ends on March 15 (currently, there are still 117 candidates). Additionally, the fate of "megacenters" will be decided, as the Council of Ministers will deliberate on their adoption for the elections slated for May 15 during a meeting to be held in the presidential palace in Baabda next Thursday.

While there has been a noticeable turnout from candidates in the relevant departments of the Ministry of Interior, it is expected that the direction of the "megacenter" file will be settled in the government palace during a meeting of the committee formed by the Cabinet to study the adoption of "megacenters." This session will also examine the content of the report from Minister of Interior Bassam Mawlawi, which, as appeared in last Friday's Cabinet session, did not satisfy the President due to the obstacles it presented against using "megacenters."

According to sources close to the presidential palace, the Interior Minister's report is exaggerated, and experts in the field counter the many reasons outlined in it that prevent the establishment of "megacenters." They relayed to "Al-Joumhouria" that "the President believes that the adoption of 'megacenters' is very feasible," contradicting all claims of serious or otherwise obstacles. Sources affirmed that President Aoun is insistent on adopting "megacenters" as a crucial reform measure that would serve the democratic process and significantly increase Lebanese citizens' participation rates in the voting processes across electoral districts. Additionally, it would save citizens huge financial costs associated with having to travel back to their villages far from their residences, particularly during the prevailing critical crisis and steep fuel price hikes.

However, the atmosphere preceding the ministerial committee meeting indicated that the prevailing tendency among most of its members is toward not adopting "megacenters" in the upcoming electoral round. This is tied to the limitations detailed in the Interior Minister's report, which specified technical and logistical obstacles preventing the implementation of "megacenters" in the May elections. Perhaps most importantly, the state's incapacity to meet all logistical and technical requirements for this matter, coupled with the time constraints, represent primary impediments. The establishment of "megacenters," as outlined in the report, requires a minimum of four and a half months to accomplish, whereas the parliamentary elections are only 69 days away—about two months. Furthermore, the electoral law requires amendments that have not referenced "megacenters" at all; it specifies that elections are to be conducted at the voter’s registered location rather than through "megacenters."

Furthermore, the primary factor preventing their establishment is the estimated financial cost of around $6 million, which the current Lebanese treasury cannot bear. Regardless of who supports or opposes the establishment of "megacenters" for political or technical reasons, and whether they would affect electoral processes by increasing voting rates, findings from some statistics and electoral studies highlight two issues:

First, rising fuel prices, where the price of a gas canister has exceeded 400,000 lira, could significantly rise even more before the May 15 elections, potentially deterring a large segment of voters from traveling to their villages and towns to participate in the elections. This could drastically reduce participation rates.

Second, the establishment of "megacenters" certainly saves Lebanese citizens the transportation costs to their registered voting locations to exercise their voting rights. In theory, it could increase participation rates among groups that traditionally refrain from voting due to the burdens and challenges of traveling to polling places in their villages and towns.

However, what must be noted in this electoral event is that a significant number of citizens have already decided not to participate, regardless of the presence of "megacenters," stemming from widespread dissatisfaction with the politicians involved, along with a lack of trust in new faces capable of effecting required change. Instead, the vast majority of candidates belong to the same political class being complained about, along with a lack of serious electoral programs attractive to voters.

The "megacenter" was discussed between Prime Minister Najib Mikati and the Interior Minister, who stated after the meeting that, "I met with the Prime Minister to discuss the issue of 'megacenters,' and both the Prime Minister and I confirmed our support for their establishment as a necessary reform step for citizens and elections. However, there are three legal, logistical, and financial obstacles." The Prime Minister requested that a committee be formed within the ministerial committee to convene three subcommittees: a legal committee to study legal matters and find solutions, and if the consensus is to make legal amendments, the necessary project law should be prepared immediately and submitted to the Cabinet for its legal and constitutional position before being referred to the Parliament. Concurrently, a logistical committee meets to find logistical solutions and to clarify the feasibility of implementing "megacenters" within the remaining time. Furthermore, the Minister of Finance is present to determine the possibility of meeting the financial needs for establishing "megacenters" within this short timeframe.

President Mikati emphasized, as I highlighted, the importance of not delaying elections even for one minute. We affirm that "megacenters" are a reform step, but the most critical matter is not to postpone elections. We must find legal solutions and submit them to Parliament as quickly as possible, while simultaneously focusing on the logistics and securing suitable funding.

In an electoral context, yesterday, the Finance and Budget Committee approved a bill to allocate 360 billion lira to finance overseas voting.

### Budget: No Enthusiasm

On another note, a journey begins today in the Parliament as the Finance and Budget Committee holds its first session dedicated to hearing from Finance Minister Youssef Khalil on the public financial policy, with the actual study set to commence in a meeting scheduled for tomorrow afternoon. This session will address the budgets of the Presidency of the Republic and the Prime Minister's office, along with all its affiliated administrations and institutions. According to information from "Al-Joumhouria," the prevailing parliamentary atmosphere does not indicate enthusiasm for completing the budget project within the two months leading up to the parliamentary elections on May 15, particularly since reviewing it requires a minimum of six weeks.

While Committee Chairman Ibrahim Kanaan seeks to hold intensive sessions, the prevailing mood in the parliament does not appear willing to engage in this intensity, especially during this period, considered preparatory for the elections, which necessitates that elected parliamentary members focus on their campaigns. Parliamentary sources told "Al-Joumhouria" that they do not support intensifying sessions merely for the sake of expediently completing the budget the way it arrived from the government, simply to claim we finished our task. On the contrary, this project requires careful examination, especially since it suffers from structural flaws and has significant pitfalls and gaps that burden the Lebanese citizen heavily. The government estimates the budget's revenues at around 50 trillion lira, and the core question that needs clear and accurate answers is based on which dollar will these revenues be secured: is it based on a dollar worth 1,500 lira, 3,900 lira, 8,000 lira, or 20,000 lira? Moreover, what is the customs dollar rate? This matter must prioritize the citizens' issues, particularly as salaries remain unchanged.

Before any discussion of figures and revenues, we must first consider the citizens' situation and their salaries, based on which the figures and revenues should be built. Based on this, the sources firmly stated that there would be no approval of the general budget during the current parliamentary term, which ends in about two months, meaning it will surely be relegated to the new Parliament resulting from the May elections. Until then, expenditure will continue under the twelfth clause, for which the Parliament recently passed a law.

### Algerian Presence

Politically, the visit of the Algerian Minister of Foreign Affairs and National Community Abroad, Ramtane Lamamra, emerged, as he met with senior officials. He conveyed a letter from Algerian President Abdelmadjid Tebboune regarding Arab affairs and preparations ongoing for the upcoming Arab summit hosted by Algeria. The President stated that "the current conditions in the Middle East and the world require more than ever solidarity among Arab states and the strengthening of unified stances following the rift that has occurred, contrary to the Arab League Charter, and the considerations necessitating that Arabs come together on one word." He affirmed that "Lebanon has always worked to unify Arabs and eliminate the reasons leading to their dispersion, thus welcoming any unifying Arab meeting."

When asked if the Kuwaiti initiative regarding Lebanese-Gulf dialogue was also discussed, as it is a prerequisite for the success of the Arab summit in Algeria—would there be a "zeroing" of problems between Arab states to ensure the success of this summit—he replied: "I recently visited Lebanon, and President Abdelmadjid Tebboune paid an official visit to brotherly Kuwait. We listened to what our brothers in Kuwait explained about this blessed initiative, which we support and hope for its success. We believe that the Lebanese political arena takes this initiative very seriously, and we are optimistic in this regard."

### Mikati: We Reject Aggression

For his part, President Mikati affirmed in front of a delegation from the "European People's Party," which included 30 deputies representing 16 countries, "that Lebanon, which has suffered invasions and wars throughout its history, remains committed to international law and the UN Charter and does not accept any aggression against the sovereignty or integrity of any state. He considers that the problem between Russia and Ukraine must be resolved through negotiations and not military options."

Delegate Brost stated, "Our visit to Lebanon centers around examining the available opportunities for Europe to better support our Lebanese friends amid current geopolitical challenges, making the situation in Europe more sensitive, especially regarding the conflict in Ukraine and its repercussions on Europe, which have visibly begun to directly affect food security in Lebanon." He added, "We are working on three essential issues: first, the political agenda in Lebanon, which includes several pivotal obligations such as the parliamentary elections on May 15 and the delayed municipal and elective elections for nearly a year. Secondly, the economic situation through the ongoing negotiations between Lebanon and the International Monetary Fund, which face certain complexities in preparation for Lebanon to obtain additional loans, all of this while considering the deteriorating exchange rates, causing major difficulties for the Lebanese people. Lastly, the relations between Lebanon and a number of Gulf nations."

He concluded: "Despite all the complexities we mentioned, we are ready to contribute to making the appropriate decisions to assist our Lebanese friends sustainably. However, it is crucial for the political partners to understand what is happening in your country."

### Amal: No Postponement

Meanwhile, the "Amal" Movement emphasized the necessity of holding the parliamentary elections on schedule. The movement rejected attempts by some to invent excuses and place obstacles affecting their conduct, stating, "It is unacceptable to let these obstacles pass, but rather it is imperative for the government to accomplish all logistical and technical matters that assist in maximizing voter participation to express their democratic choices."

Additionally, "Amal" called for "deterrent actions against all monopolistic traders who exploit their greed by manipulating the citizens' livelihoods." It urged the government and relevant ministries to "create an actionable plan quickly to keep pace with global developments and mitigate their effects on Lebanon's interior; it is unacceptable and inadmissible for monopolization and control over food and fuel supplies to continue without any restraint or hindrance."

Moreover, the "Development and Liberation" parliamentary bloc will fulfill its legislative role once the budget is referred to Parliament, and from its responsibilities to the people, it will take the necessary measures to rectify the budget's course and address any flaws it may contain, firmly rejecting any imposition of new taxes or fees that burden the citizen further amid this crisis. The bloc will insist on incorporating in the budget reform orientations financially and economically while ensuring that it can cover the costs of the funding card.

It reiterated its commitment to protecting the national university, supporting its budget, and restoring authorities to its councils, demanding the government expedite addressing issues related to permanent staff, administrative roles, and the rights of trainers.

### Army Commander

In this context, Army Commander General Joseph Aoun affirmed that "the nation relies on us and on our steadfastness; we are the men to depend on in tough times." He addressed the military personnel through the Army magazine, stating: "The crisis will not diminish your resolve; you are the last hope for our people. Our war today is a war of wills. Those who possess will endure and win. I am confident that your determination remains as strong as I have always known it to be. This crisis will not weaken your resolve; rather, it is known far and wide that you are brave men who have experienced the homeland's soil through your sacrifices and steadfastness. This is the era of strong men, men against whom challenges cannot prevail. You are the last hope for our people. This moment is critical and sensitive, and it awaits us with vital national obligations. The Lebanese people trust you, as does the international community. You are the salvation of this country and the guarantee of its existence and future. Our homeland needs you more than ever right now; do not lose faith in it due to the ongoing crisis it faces, which will inevitably end, allowing it to regain its spark."

He added, "We swore to defend our homeland and our people, and we will continue! Our comrades preceded us on the path of martyrdom for this nation and this people; we must remain loyal to their blood. Rest assured that your leadership has been and will remain alongside you to ease your burdens and help you through the crisis. Be a role model in your community and for your children by loving the homeland and clinging to its precious soil. Military life has taught us sacrifice and endurance; hence we will remain steadfast and resolute in our convictions and our faith in our nation to navigate this phase successfully. The hope for a better tomorrow shall remain our motto as we cling to it while moving forward in the execution of our tasks with conviction, determination, and steadfastness to defend our homeland and assist it to emerge from this ordeal safe and sound, returning to its prominence as a beacon for the East."

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