It’s austerity or catastrophe, Saad Hariri tells Lebanon

Prime Minister Saad Hariri promised “the most austere budget in the history of Lebanon.” ()
Updated 18 April 2019
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It’s austerity or catastrophe, Saad Hariri tells Lebanon

  • The 2019 draft budget includes “wide reductions” in spending

BEIRUT: Lebanese public sector workers took to the streets of Beirut in protest on Wednesday ahead of a budget expected to impose painful austerity measures.

The 2019 draft budget includes “wide reductions” in spending based on the need for “exceptional austerity measures,” Finance Minister Ali Hassan Khalil said. 

Prime Minister Saad Hariri promised “the most austere budget in the history of Lebanon.” 

He said: “It’s my duty to be honest with people. We stand with limited-income people and the retired, but we want to maintain the lira peg and the salary scale for general services and national officers. To do so, tough austerity measures will be needed to the detriment of public expenditure.”

The budget is seen as a critical test of the government’s will to enact reforms that economists say are more pressing than ever for an economy that has suffered years of low growth. State finances are strained by a bloated public sector, high debt servicing costs and hefty subsidies spent on the power sector.

Hariri said: “If we continue like this we will reach a catastrophe.” Unlike other states that had suffered financial crises such as Greece, Lebanon would have no one to save it, he said.

Labor union chief Bechara Al-Asmar, who took part in a protest sit-in in Beirut on Wednesday, told Arab News: “We raise our voice because the government finds that the easiest things to do is to jeopardize the public sector.

“But there are many measures that can be adopted before cutting wages, including a correctional basket that does not affect Lebanese people. The government always prevails over the weak, but the public servants will no more be the weak link.”

Public sector union member Dib Hashem said: “We will not wait for them to cut our wages. We have waited 20 years for our salaries to improve and increase, we will not allow them to cut them again.”


Morocco’s energy ministry puts gas pipeline project on hold

Updated 4 sec ago
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Morocco’s energy ministry puts gas pipeline project on hold

  • The country’s natural gas demand is expected to rise to 8 billion cubic meters in 2027 from around ‌1 bcm currently, according to ministry estimates

RABAT: Morocco’s energy ministry said on Monday it has paused a tender launched last month ​for a gas pipeline project, without giving details on the reasons for the suspension.
The tender sought bids to build a pipeline linking a future gas terminal at the Nador West Med port ‌on the Mediterranean ‌to an existing ‌pipeline ⁠that ​allows ‌Morocco to import LNG through Spanish terminals and supply two power plants.
It also covered a section that would connect the existing pipeline to industrial zones on the Atlantic in ⁠Mohammedia and Kenitra.
“Due to new parameters and assumptions ‌related to this project... the ‍ministry of ‍energy transition and sustainable development is ‍postponing the receipt of applications and the opening of bids received as of today,” the ministry said in a statement.
Morocco ​is looking to expand its use of natural gas to diversify ⁠away from coal as it also accelerates its renewable energy plan, which aims for renewables to account for 52 percent of installed capacity by 2030, up from 45 percent now.
The country’s natural gas demand is expected to rise to 8 billion cubic meters in 2027 from around ‌1 bcm currently, according to ministry estimates.