Lebanese purchasing power continues to shrink amid financial collapse

Wed, 2021-12-15 23:53

BEIRUT: The Lebanese pound hit record lows this week, trading at almost LBP29,000 to the US dollar, leading to an intervention from the Banque du Liban that allowed the exchange rate to drop to LBP27,000.

This spurred self-employed professionals to call for a national state of emergency to be declared, while the transport sector announced that Thursday would be a “day of anger.”

Further exacerbating the situation in Lebanon, the director-general of telecom company Ogero, Imad Kreidieh, said he had applied for an urgent advance to purchase fuel to continue operating the electrical generators for telecom networks.

“But President Michel Aoun refrained from signing decrees since the Cabinet is not convening, which may lead to the suspension of our services and interruption of internet services,” he added.

In light of Lebanon’s increasing financial challenges, the purchasing power of Lebanese citizens has shrunk by 95 percent, while the minimum wage has become the equivalent of about $24.

The head of the Syndicate of Food Importers, Hani Bohsali, said: “The situation is too dangerous. It is not limited to the exchange rate or price increase. Food security is in danger. Regardless of the ability to secure dollars for imports, the problem has become in the consumer’s ability to purchase goods. Chaos is pervading markets.”

The heads of professional syndicates met on Wednesday and expressed “deep concerns about the comprehensive deterioration that has crossed the line and is now threatening the country’s foundations.”

The syndicates called for the need to declare a national state of emergency, accompanied by “vigorous work” to initiate a political solution to save the country and put in place a clear and effective rescue plan, especially “in the absence of serious solutions” for social and economic issues.

“BDL and the Association of Banks in Lebanon ought to take urgent measures to make it easier for the professional syndicates to withdraw their deposits in Lebanese and foreign currencies as soon as possible,” the syndicates demanded, threatening to sue BDL and ABL, and carry out massive protests.

HIGHLIGHT

Self-employed professionals called for a national state of emergency to be declared, while the transport sector announced that Thursday would be a ‘day of anger.’

There are no prospects of the Cabinet convening any time soon, as Hezbollah and the Amal Movement insist on removing Tarek Bitar, the judge leading the probe into the Beirut port blast, before attending any sessions.

Bitar has reiterated his demand for the arrest of former finance minister, MP and leader in the Amal Movement, Ali Hassan Khalil.

Some political observers interpreted these developments as “new means of pressure against the continuous disruption of Cabinet sessions by Hezbollah and the Amal movement,” while other pro-Hezbollah observers believed this was “a new American means of pressure to besiege the party.”

Parliament Speaker Nabih Berri, an ally of Hezbollah, told his visitors on Wednesday: “99 percent of our suffering in Lebanon stems from internal disputes.”

He accused Aoun and the Free Patriotic Movement of opposing the Taif Agreement and abstaining from implementing laws, especially the law on electricity which, he said, was to blame for over 45 percent of the state’s financial deficit.

Berri said that he and Hezbollah did not want Bitar to be removed from the port probe. Rather, they were demanding that the investigation abide by the law and constitution.

“The law granted judges the right to be tried before a special tribunal, as well as it granted MPs, presidents and ministers the right to be tried before a parliamentary body. Why were these rules and principles not adhered to?”

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What the growing US-Israel rift means for the Iran nuclear issue

Wed, 2021-12-15 22:57

WASHINGTON: Talks to revive the Iran nuclear deal, which could see stringent sanctions on Tehran lifted in exchange for guarantees to halt its uranium enrichment program, resumed in Vienna at the end of last month.

However, delays and obstructions by the hard-line government of Iran’s President Ebrahim Raisi, Israeli attacks on Iranian targets in Syria, and increasingly combative rhetoric from Tel Aviv have collectively cast doubt on the success of the renewed dialogue. 

Jean-Yves Le Drian, the French foreign minister, told a parliamentary committee on Dec. 7 that he fears the Iranians are playing for time in an attempt to water down the terms of the deal. 

“We have the feeling the Iranians want to make it last and the longer the talks last, the more they go back on their commitments and get closer to capacity to get a nuclear weapon,” Le Drian was quoted by the Reuters news agency as saying. 

Soon after the talks resumed, the head of Israel’s intelligence agency Mossad, David Barnea, vowed that Israel will never allow Iran to acquire nuclear weapons, indicating that the Naftali Bennett government is losing patience with diplomatic efforts and is increasingly willing to use force.

Indeed, on Dec. 7, Israel launched a rare airstrike against Syria’s main port of Latakia. According to the Syrian Observatory for Human Rights, a UK-based conflict monitor, the strike destroyed an Iranian weapons shipment. Israel’s military is yet to comment on the attack.

“Iran will not have nuclear weapons — not in the coming years, not ever,” Barnea said at an agency awards ceremony in early December. “This is my personal commitment: This is the Mossad’s commitment.”

“Our eyes are open, we are alert, and together with our colleagues in the defense establishment, we will do whatever it takes to keep that threat away from the state of Israel and to thwart it in every way.” 

Barnea and Benny Gantz, Israel’s defense minister, made a rare joint trip to Washington last week where they reportedly pressed senior White House officials on the need to seriously consider joint strikes on key Iranian military and nuclear targets.  


A handout picture provided by the Iranian presidency on Oct. 8, 2021 shows Iran’s President Ebrahim Raisi visiting the Bushehr Nuclear Power Plant. (AFP) 

Iran has accelerated enrichment since the US withdrew from the accord in 2018, with then-president Donald Trump claiming the deal did not go far enough in curtailing Tehran’s atomic ambitions. Iran has long insisted its program is purely for civilian energy purposes. 

US President Joe Biden, who helped negotiate the original deal in 2015 as Barack Obama’s vice president, wants to rejoin a strengthened nuclear agreement, which co-signatories Russia, China, Britain, France, Germany and the EU have fought hard to salvage. 

However, Israel is not convinced that reviving the 2015 deal will curb Iran’s nuclear capabilities and its ballistic missile program, to say nothing of its destabilizing influence across the Middle East. Instead, the Israelis want a more forceful deterrent on the table. 

The window for reaching a nonmilitary resolution to Iran’s nuclear program is closing fast. Israeli intelligence indicates Iranian nuclear scientists are preparing to enrich uranium to 90 percent purity, bringing Tehran closer than ever to building a bomb. 

Unless further enrichment is prevented, Iran could stockpile enough weapons-grade uranium in the coming months to produce a viable nuclear weapon with little warning.

Israel’s frustration with the Biden administration’s stance has been steadily building in recent weeks. In a video published on his YouTube channel, Naftali Bennett called on fellow world leaders to not allow Iran to get away with what he called “nuclear blackmail.” 

Israeli officials are concerned Biden’s negotiating team will roll back sanctions on Iran, both nuclear and terrorism-related, thereby releasing billions of dollars that the regime desperately needs, in exchange for only minimal guarantees on curtailing its nuclear program.

Furthermore, Bennett has hinted that Israel is prepared to take matters into its own hands if the US accepts a “less for less” interim deal with Iran that would potentially give the regime sufficient latitude to achieve nuclear weapons breakout in the near future.

Such an incremental deal could end up further emboldening Iran’s regional transnational terror network by providing Shiite proxies in Iraq, Lebanon, Syria, Yemen and beyond with funding previously denied to them under harsh sanctions. 


Iranian protesters raise a dummy of US President Joe Biden during a rally outside the former US embassy in Tehran on Nov. 4, 2021, to mark the 42nd anniversary of the start of the Iran hostage crisis. (AFP photo)

“To chase the terrorist du jour sent by the Quds Force does not pay off anymore,” Bennet said in a televised conference hosted by Reichman University on Nov. 23. “We must go for the dispatcher.”

The US and Israel have traditionally acted in lockstep on the issue of containing Iran, so the recent divergence of opinion and the growing prospect of unilateral Israeli action is raising concerns in Washington. 

“Naftali Bennett’s government tried hard to cooperate with the Biden team when they came into office to present a joint front on Iran policy because they genuinely thought it could get the US to listen to them more,” said Gabriel Noronha, executive director of the Forum for American Leadership and previously the State Department’s special adviser for Secretary of State Mike Pompeo’s Iran Action Group.

“They’ve increasingly realized they were naive on this point and have begun speaking out in the press more and more with their complaints, while at the same time US officials are leaking details of Israeli military operations to the press. 

“Both Israeli officials and the US military leadership believe there is a need to have a credible military threat to deter Iran’s nuclear program. However, they are at odds with Biden’s political appointees at the State Department, National Security Council, and Colin Kahl — the number three official at the Pentagon — who remain under the delusion that appeasement toward Iran is the best path forward.”


Inspectors of the International Atomic Energy Agency had been repeatedly denied complete access to Iranian nuclear facilities. (AFP file photo)

Noronha warned against downplaying Israel’s complaints in the quest to revive the nuclear deal, arguing that taking the country’s security concerns seriously might actually enhance US leverage over Iran. 

“The US needs to change its approach and recognize that Israel is its best partner against the Iranian threat because its military, diplomatic and economic pressure against the regime gives the US more leverage in negotiations,” he told Arab News. 

“Many Israeli officials are incredibly frustrated by Washington’s antagonism toward Israeli policy, which is just trying to ensure its basic security needs are met. Israel can help the US — and its negotiations — by continuing to take covert action against Iran’s oil exports and its nuclear program. 

“The US would be wise to share more intelligence with Israel to advance and support its operations, as well as accelerate its military cooperation on a potential airstrike against Iran’s nuclear facilities.”

One area in which the Biden administration sharply differs from Bennett’s outlook is its willingness to accept a “threshold state” when it comes to Iran’s nuclear capabilities. 

Indeed, it would appear the Biden White House is prepared to tolerate a status quo in which Iran holds the components for “nuclear breakout,” including the requisite knowledge, military hardware and enrichment capacity, without actually building a nuclear weapon. 

By contrast, the Israelis believe such a threshold state is just as serious as Iran actually developing a nuclear weapon. 

Ellie Cohanim, who was deputy special envoy to monitor and combat antisemitism at the State Department under the Trump administration, is concerned the Biden administration is not listening to Israeli concerns. 


Iran atomic energy chief Mohammad Eslami (L) and Kazem Gharib Abadi (C), Iran’s governor to the International Atomic Energy Agency (IAEA), depart after attending an IAEA meeting in Vienna, Austria on Sept. 20, 2021. (AFP)

“It seems that, behind the scenes, the differences between the Biden administration and its Iran negotiating team with the Israeli government are growing,” Cohanim told Arab News, adding that the Biden team has failed to replicate the Trump administration’s “zero tolerance” policy.

“Israeli PM Bennett has stated on the record that the US and world powers need to wake up to the fact that the Iranian regime is seeking nuclear weapons, and so it would appear there is a sense of frustration that the Israelis have with the current US administration,” she told Arab News.

“President Donald Trump stated clearly that he would never allow Iran to develop a nuclear bomb on his watch, and it is time for US President Joe Biden to go on the record stating the same. 

“The Israelis have demonstrated time and again their premier intelligence capability, especially in relation to Iran. The Biden administration would be well advised to rely on Israeli intelligence data and take any necessary military actions to end Iran’s nuclear weapons activity should Israel ever assess that the Iranians had crossed the line when no further alternatives exist to kinetic activity.”

Where this line is drawn remains a point of contention between Biden and Bennett’s national security teams. Failure to reach a common position could result in unilateral Israeli action against Iran’s nuclear infrastructure. And, yet, the rift seems wider than ever. 


US President Joe Biden meets with Israeli Prime Minister Naftali Bennett at the White House on August 27, 2021 in Washington, DC, during talks focused on Iran. (AFP photo)

“Ever since Prime Minister Bennett’s visit to Washington to meet President Biden, senior Israeli officials have been publicly talking about their displeasure with Biden’s plan to move full steam ahead with diplomacy with the Islamic Republic,” Bryan Leib, executive director of Iranian Americans for Liberty, told Arab News.

“Just a week ago, Biden’s US special envoy to Iran was in Israel meeting with several senior Israeli officials, but it was reported that PM Bennett chose not to meet with him. 

“For the last 40 years, the Iranian regime has been censoring, oppressing and murdering its own citzens, while its leaders publicly call for the destruction of the US and the world’s only Jewish nation, Israel,” Leib said. 

“Diplomacy with the Islamic Republic will fail once again because they are not rational actors that truly seek peace and a brighter future for their people.”

____________

Twitter: @OS26

Negotiators at the discussions to revive the Iran nuclear deal in Vienna, which restarted on Nov. 29, appear no closer to finding a solution to the impasse. (AFP)
This satellite image released by Maxar Technologies, taken on May 31, 2021, shows a close-up view of the alleged Sanjarian nuclear facility, east of Iran's capital Tehran. (AFP)
Iranian protesters raise a dummy of US President Joe Biden during a rally outside the former US embassy in Tehran on Nov. 4, 2021, to mark the 42nd anniversary of the start of the Iran hostage crisis. (AFP photo)
A handout picture provided by the Iranian presidency on Oct. 8, 2021 shows Iran's President Ebrahim Raisi visiting the Bushehr Nuclear Power Plant. (AFP)
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Arab coalition airstrikes hit ballistic missile, drone sites in Sanaa

Wed, 2021-12-15 01:45

RIYADH: Arab coalition airstrikes destroyed two caves used to store ballistic missiles and four secret drone facilities in the Yemeni capital Sanaa, the coalition announced early on Wednesday.

The attacks come after Saudi Arabian forces destroyed a ballistic missile launched by Houthi militia and targeting Khamis Mushayt, near Abha in the Kingdom’s southwest, on Monday.

“Destroying capabilities and neutralizing the threat requires the operation to continue to achieve its goals,” the Arab coalition said a statement on Al-Ekhbariya.

Bahrain and Kuwait have condemned Houthi militia attempts to attack civilians and civilian buildings in Saudi Arabia with a ballistic missile on Monday.

In separate statements, both countries labeled the missile attack as a “flagrant violation of international humanitarian law.”

The coalition has stepped up operations targeting Houthi military sites after an increase in cross-border attacks in recent days aimed at Saudi Arabia.

The militia, which seized the Yemeni capital in 2014, has been fighting the internationally recognized government, which is supported by the Saudi-led Arab coalition.

 

The coalition said they destroyed 2 caves used to store ballistic missiles and 4 secret storages related to drones activities. (SPA/File)
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Lebanon looks to keep COVID-19 cases down over the holidays

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Wed, 2021-12-15 01:05

BEIRUT: The Lebanese Ministry of Health fears a surge in COVID-19 cases in the coming weeks, which would force Lebanon to face a repeat of last year’s scenario.

Health Minister Dr. Firass Abiad said Tuesday: “Cases are on the rise. More patients are being admitted to hospitals every day.

“We have been working to ensure hospitals are ready to receive patients; the occupancy rate has risen to 76 percent, which is a cause for concern,” Abiad added.

The Ministry of Health is racing to stop the new wave by holding open vaccination campaigns every weekend, or what is known as the “Pfizer marathons.”

On Monday, the ministry reported 787 new COVID-19 cases and 12 deaths.

Abiad said that three cases with the omicron variant had been registered in Lebanon. “Omicron cases are expected to rise in Lebanon, like in other countries.”

So far, 40 percent of those registered on the vaccination platform, or about 2.2 million people, have received the first vaccine shot, 34 percent (nearly 1.9 million) have received the second one, while only 11 percent have had the booster shot.

MP Assem Araji, a cardiologist who heads Parliament’s health committee, stated that “after last year’s holidays, we had between 1,600 and 1,900 daily cases.

“We do not want the same scenario this year. People are not adhering to precautionary measures, so we asked the Minister of Health and all concerned ministries, namely the ministries of tourism and interior, to be strict in applying preventive measures. We have a sufficient number of vaccines and the number of vaccinated people has reached 150,000 last week. This is a good number and we have to stay on this path because there is no excuse for not being vaccinated. We do not want history to repeat itself because we cannot face another outbreak and vaccines are available for everyone,” Araji said.

The committee that follows up on COVID-19 preventative measures issued a decision to “impose a limit of 50 percent capacity at any venue.” There are no indications of a lockdown yet.

Araji urged people to “abide by the precautionary measures during the holidays,” pointing out that about 2,000 nurses have left the country, which means Lebanon is facing a severe shortage of medical staff.

Doctors fear that last year’s scenario will be repeated more tragically amid the shortages in the medical sector.

The Syndicate of Owners of Restaurants, Cafes and Nightclubs in Lebanon announced that it is “aware of the recent increase in COVID-19 cases and the search for the best preventive methods is underway, especially during the upcoming holidays.”

Although many Lebanese expats are returning home for the holidays, Pierre Al-Ashkar, the head of the Syndicate of Hotel Owners in Lebanon, described the atmosphere as “gloomy and not quite festive.”

He said: “The tourism sector is in freefall. The main problem is that the Ministry of Health focuses on monitoring restaurants and hotels without monitoring homes, chalets, and private parties.

“If we tell customers that we cannot exceed a certain number of attendees, they will automatically resort to holding a New Year’s party, for example, at a chalet they rent. Yes, overcrowding in homes and chalets exists and is many times greater, and it’s even less expensive than going out.”

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Yerevan, Ankara to take steps to rebuild ties

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Wed, 2021-12-15 00:55

ANKARA: As part of Turkey’s normalization efforts with its former foes, its Foreign Minister Mevlut Cavusoglu announced on Dec. 13 during a speech in parliament that Turkey and Armenia had agreed to mutually appoint special envoys for starting to mend broken ties.

After more than three decades with a closed land border which obliged Armenia to use Georgian and Iranian borders to reach out to the world, charter flights will now resume between Yerevan and Istanbul.

Richard Giragosian, director of the Regional Studies Center, Yerevan-based think tank, said this announcement — which is being seen as Turkey taking a first step in support of “normalization” with Armenia — follows several months of positive statements between Yerevan and Ankara.

Since the summer, the two countries have exchanged positive signals at the diplomatic front, with Armenian Prime Minister Nikol Pashinyan saying on Aug. 27 that it was considering reacting to positive public signals coming from Ankara by reciprocating with similar steps.

Two days later, Turkish President Recep Tayyip Erdogan said Turkey can work to gradually normalize ties with Armenia.

Speaking during a meeting of Commonwealth of Independent States country leaders on Oct. 15, Pashinyan confirmed that normalizing ties with Turkey would contribute to establishing a lasting regional peace and implementing the agreements reached last year on the Nagorno-Karabakh crisis.

Relations between Armenia and Azerbaijan have been tense for three decades over the status of the Nagorno-Karabakh region, a territory that is occupied by the Armenian military but is internationally recognized as part of Azerbaijan.

Last year’s 44-day war over the key territory changed the regional calculus with the defeat of Armenia, which handed back the occupied territories to Azerbaijan. With this move, the main reason for Ankara to close its borders with Armenia became irrelevant.

Turkey is expected to take normalization steps with Armenia in coordination with Azerbaijan. But the extent to which Russia will be involved in the process or play a spoiler role is still unclear.

“This is significant for several reasons,” Giragosian told Arab News, adding: “First, the process of normalization, which lays the basis for eventual reconciliation, is part of a broader post-war effort to restore regional trade and transport in the South Caucasus region.”

The two countries had signed landmark peace accords — known as the “Zurich protocols” — in a bid to establish diplomatic ties and re-open the joint border in 2009, but they were never ratified, as their relations remained tense as Turkey conditioned the agreement on the withdrawal of Armenia from Nagorno-Karabakh.

Giragosian thinks that a return to diplomatic engagement between Turkey and Armenia offers a rare success in Turkish foreign policy and a positive development after months of political instability and economic crisis in Turkey.

“And this is also a component of a more ambitious Turkish effort of rapprochement with Israel, the UAE and others,” he added.

As Turkey feels excluded by Moscow in the post-war regional arrangements as it was sidelined in the Russia-Armenia-Azerbaijan working group on reopening transportation links, these normalization talks will offer a chance for Turkey to have a say at the table, experts also noted.

According to Nigar Goksel, Turkey director of the International Crisis Group, Turkey and Armenia deciding to appoint special representatives is an important positive first step in what is likely to be an incremental normalization process.

“Ankara will be navigating delicately to ensure that Baku is on board at every step along the way as it progresses dialogue with Yerevan,” she told Arab News.

But Goksel thinks that Russia will also be involved in the process.

During a press briefing on Nov. 25, Russian Foreign Ministry spokeswoman Maria Zakharova said that Moscow was prepared to mediate efforts to repair relations between Armenia and Turkey.

“Turkey will want to ensure regional stakeholders do not have an incentive to act as spoilers. As such I think regional transport and economic integration will be a central focus, because it is in the interests of all sides. Regional integration is likely to be the basis upon which people-to-people reconciliation will be built up in the longer term,” Goksel said.

The agreement that ended the Nagorno-Karabakh war in 2020 included the “unblocking of regional economic and transport links” in the region, triggering debates over the prospects of opening regional transport links.

Although a welcome move, Giragosian thinks that this is merely a first step toward the minimum of relations between neighbors: The reopening of the closed border and the establishment of diplomatic relations between Turkey and Armenia.

“Nevertheless, this does reflect a new environment more conducive to de-escalation and post-war stability, as well as the start of a return to diplomacy after unprecedented Turkish military support for Azerbaijan’s war for Nagorno-Karabakh in 2020,” he said.

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