Saad Hariri Announces Formation of New Lebanese Government

Saad Hariri, the Prime Minister of Lebanon, announced on Thursday, January 31, that an agreement has been reached to form a new government after eight months of negotiations. In a statement, Hariri apologized to the public for the prolonged cabinet formation and expressed concern over Lebanon's economic situation. Thus, over eight months of bargaining over the distribution of cabinet posts in Lebanon's government system, which is always subject to disputes and competition, has come to an end. Meanwhile, the composition of the new Lebanese cabinet has been announced. Gebran Bassil, an ally of Hezbollah and son-in-law of Michel Aoun, has retained his position as Minister of Foreign Affairs. Reuters reports that Elias Bou Saab, another ally of Michel Aoun, will serve as Minister of National Defense in the new cabinet. Ali Hassan Khalil will remain in his position as Minister of Finance. This is Saad Hariri's third government, which has promised to implement necessary economic reforms to improve the government's financial situation, a key condition for receiving billions of dollars in financial aid to boost the country's economic growth. Negotiations regarding the composition of the new national unity government began after the mid-May elections, in which Hezbollah and its allies gained more votes than in previous elections. Although Lebanon's economy and financial system have shown flexibility during previous political blockages, recent concerns among investors regarding the prices of government bonds and the costs of borrowing and bankruptcy have become evident.