Inter-Christian Dispute Erupts over President’s Share in New Lebanese Govt.

Details

aawsat.com - A dispute between the Free Patriotic Movement (FPM) and the Lebanese Forces (LF) reached an unprecedented level on Tuesday after the latter proposed giving a ministerial portfolio that will be shared between President Michel Aoun and his allied bloc, Strong Lebanon, in the next cabinet. According to norms in Lebanon, presidents receive a ministerial share in cabinet lineups. However, those presidents were never represented by another bloc inside the same government. This is not the case of the current cabinet, where Aoun, the founder of the FPM, has a ministerial share separate from his party’s representation. This prompted the LF to demand that Aoun and the Strong Lebanon bloc obtain a joint ministerial portfolio in the new government. But, the 29-member Strong Lebanon bloc headed, by FPM leader and outgoing Foreign Minister Jebran Bassil, insist on getting a portfolio separate from Aoun’s. LF sources told Asharq Al-Awsat that the party’s fight in this regard is not directed against the president, but against Bassil, who is trying to use Aoun’s share to minimize the LF shares. “The Lebanese Forces is keen on protecting the powers and the role of the Presidency, but we will not accept that some parties skirt the results of the parliamentary elections,” the source said.

LF and social media activists posted on Tuesday a video showing Aoun, when he was still head of the FPM, commenting on the issue during the term of President Michel Suleiman. Aoun had declared that a president is not entitled to a ministerial portfolio. However, it seems that Aoun and Bassil currently refuse to even discuss the LF request. “The issue is already settled and not subject to any discussion,” Aoun sources told Asharq Al-Awsat, accusing the LF of trying to damage the powers of the president. Shiite and Sunni parties have avoided discussing the matter, keeping the ball in the Christian court. Mustaqbal Movement official Mustafa Alloush told Asharq Al-Awsat: “Prime Minister-designate Saad Hariri and his party are only concerned about the quick lineup of the cabinet away from any complications.” It is up to the LF and the FPM to resolve issues related to the presidential shares in the next cabinet or to any issue related to the Christian representation in the country, he added.

Kim Jong Un reportedly cried over North Korea's bad economy, and it could show he's ready to cave to Trump

Details

A video of North Korean leader Kim Jong Un crying about his country's terrible economy while surveying its coast is said to be making the rounds among the country's leadership — and it could be a sign he's ready to cave in to President Donald Trump in negotiations. Japan's Asahi Shinbun quoted a defector with contacts inside the country as describing a video in which a narrator explains Kim is crying that he can't improve North Korea's economy. The defector reportedly said the video surfaced in April and high-ranking members of North Korea's ruling party viewed it, possibly in an official message from Kim to the party. In April, North Korea had already offered the US a meeting with Kim and was in the midst of a diplomatic charm offensive in which it offered up the prospect of denuclearization to China, South Korea, and the US. The defector speculated that the video was meant to prepare the country for possible changes after the summit with Trump.

Really strange video

In North Korea, Kim is essentially worshipped as a god-like figure with an impossible mythology surrounding his bloodline. Kim is meant to be all powerful, so footage showing him crying at his own inability to improve his country's economics would be a shock. Kim's core policy as a leader had been to pursue both economic and nuclear development, but around the turn of 2018, he declared his country's nuclear-weapon program completed. Experts assess with near unanimity that Kim doesn't really want to give up his country's nuclear weapons, as he went to the trouble of writing the possession of nuclear weapons into North Korea's constitution. Instead, a new report from the CIA says Kim simply wants US businesses, perhaps a burger joint, to open within the country as a gesture of goodwill and an economic carrot, CNBC reports.

Big if true

Trump has made North Korea a top priority during his presidency and has spearheaded the toughest sanctions ever on Pyongyang. In particular, Trump has been credited with getting China, North Korea's biggest ally and trading partner, to participate in the sanctions. As a result, doing business with North Korea became nearly impossible, and its trade deficit with China ballooned. For a leader who is meant to be seen as the all-powerful resistance to the West, crying about Trump-imposed sanctions would be a big story signaling an about-face.

Kim Jong Un reportedly cried over North Korea's bad economy, and it could show he's ready to cave to Trump

Details

A video of North Korean leader Kim Jong Un crying about his country's terrible economy while surveying its coast is said to be making the rounds among the country's leadership — and it could be a sign he's ready to cave in to President Donald Trump in negotiations. Japan's Asahi Shinbun quoted a defector with contacts inside the country as describing a video in which a narrator explains Kim is crying that he can't improve North Korea's economy. The defector reportedly said the video surfaced in April and high-ranking members of North Korea's ruling party viewed it, possibly in an official message from Kim to the party. In April, North Korea had already offered the US a meeting with Kim and was in the midst of a diplomatic charm offensive in which it offered up the prospect of denuclearization to China, South Korea, and the US. The defector speculated that the video was meant to prepare the country for possible changes after the summit with Trump.

Really strange video

In North Korea, Kim is essentially worshipped as a god-like figure with an impossible mythology surrounding his bloodline. Kim is meant to be all powerful, so footage showing him crying at his own inability to improve his country's economics would be a shock. Kim's core policy as a leader had been to pursue both economic and nuclear development, but around the turn of 2018, he declared his country's nuclear-weapon program completed. Experts assess with near unanimity that Kim doesn't really want to give up his country's nuclear weapons, as he went to the trouble of writing the possession of nuclear weapons into North Korea's constitution. Instead, a new report from the CIA says Kim simply wants US businesses, perhaps a burger joint, to open within the country as a gesture of goodwill and an economic carrot, CNBC reports.

Big if true

Trump has made North Korea a top priority during his presidency and has spearheaded the toughest sanctions ever on Pyongyang. In particular, Trump has been credited with getting China, North Korea's biggest ally and trading partner, to participate in the sanctions. As a result, doing business with North Korea became nearly impossible, and its trade deficit with China ballooned. For a leader who is meant to be seen as the all-powerful resistance to the West, crying about Trump-imposed sanctions would be a big story signaling an about-face.

New tax exemptions for eco-friendly cars

Details

BY OLGA HABRE,life.executive-magazine.com -- On April 19 the Budget Law appeared in Lebanon’s Official Gazette, with Article 55 stating that eco-friendly cars, including hybrids and electric vehicles (EV), will now have reduced customs duties and excise taxes when entering the Lebanese market. The day before, Minister of Energy and Water Cesar Abi Khalil announced the news for the first time in a speech at the Antonine University. Speaking to Executive magazine, advisor to the Association des Importateurs d’Automobiles au Liban (AIA) Selim Saad confirmed the news, adding that it was thanks to their lobbying efforts that the ruling is now in effect. Currently, Lebanese car buyers pay 20 percent customs duty on vehicles that are valued up to LL20,000,000 ($13,333), and 50 percent on those valued higher. This new law means that buyers wishing to purchase a hybrid vehicle will now have to pay only 20 percent customs for a vehicle of any value, if that vehicle is for private use, and 10 percent for public use. Meanwhile, EVs will be exempted from customs altogether. Likewise, for both hybrids and EVs, owners do not pay registration nor the first Mecanique fees.

These incentives are definitely encouraging for those looking to purchase eco-friendly vehicles in Lebanon. Hybrid cars are already sold here, and one hopes the customs cut will have a positive effect on sales. However EVs are not yet sold in Lebanon, and the law raises a lot of questions about how a country with such poor infrastructure will be able to deal with the technology that’s required to power the vehicles. If EVs are to enter the Lebanese market, dealers and other entities in the automotive sector need to figure out solutions to a host of challenges, such as the need for charging stations throughout the country, as well as to deal with some of the vehicles’ other high-tech features, like self-driving capabilities which rely on digital maps. Most people that have tried to use Google Maps and its counterparts in Lebanon know that the struggle is real, while often the roads indicated are not, which would be a major problem when a car relies on this technology to drive. Lebanon would also need technical service capacity building in maintenance and repair by dealers, further incentives in terms of parking and insurance provision, as well as public awareness campaigns to spread the message about the benefits of EVs. The new tax exemptions are a great step forward, but they will require additional efforts if they are going to be effective at all.

Lebanon central bank says sells $3bn in Eurobonds

Details

Reuters -- BEIRUT: Lebanon’s central bank said on Tuesday it sold $3.022 billion of Eurobonds, more than three times the $1 billion it planned to place with demand from local investors high. The central bank, which this month said it intended to sell $2 billion of Eurobonds over the coming year, said it planned no further sales of Eurobonds from its portfolio in 2018. Tuesday’s sale was of paper maturing between 2028 and 2034 and yielding from 7 to 8.25 percent. Settlement is on Wednesday, it said. The Lebanese government completed a $5.5 billion debt swap with the central bank on May 18, issuing it with Eurobonds in exchange for Lebanese pound T-Bills. The ministry said the swap secured its foreign currency financing needs until the end of 2018 and also strengthened the central bank’s dollar reserves. A similar $1.7 billion swap was also carried out in November 2017. After the two swaps and the sale, the central bank said it held around $4.7 billion in Eurobonds, representing just over 8 percent of its dollar assets. Lebanon is the world’s third most indebted nation after Japan and Greece, with a debt-to-GDP ratio of more than 150 percent. The International Monetary Fund has said Lebanon’s debt trajectory is unsustainable and the government needs to take immediate action to boost growth and reduce its budget deficit.

Saudi Arabia Denies Macron's Charge It Held Lebanese PM Captive

Details

RIYADH (REUTERS) - Saudi Arabia's Foreign Ministry denied French President Emmanuel Macron's assertion that the kingdom held Lebanese Prime Minister Saad al-Hariri captive last November, official Saudi media reported on Tuesday. In an interview with broadcaster BFM TV last week, Macron claimed credit for heading off war in Lebanon, which was plunged into crisis after Hariri resigned while in Saudi Arabia, saying he feared assassination and criticizing the Saudis' regional rival Iran and its Lebanese ally Hezbollah. Sources close to Hariri have said Saudi Arabia had concluded that the prime minister, a long-time Saudi ally, had to go because he was unwilling to confront Hezbollah. After international intervention, including by Macron, Hariri was able to leave the kingdom and eventually rescinded his resignation. Lebanese officials accused the Saudis at the time of holding Hariri hostage. Riyadh, like Hariri, denied he was ever held against his will. The Saudi Foreign Ministry statement on Tuesday called Macron's comments "untrue" and said the kingdom would continue to support Lebanon's stability and security. "All the evidence confirms that what is pulling Lebanon and the region toward instability is Iran and its tools like the Hezbollah terrorist militia..." the statement said. Saudi Arabia and Iran are locked in a decades-old struggle for regional influence, which plays out in armed conflicts and political disputes including in Lebanon, Syria, Iraq and Yemen.

France had nurtured new links with Saudi Arabia and other Gulf Arab states in recent years due to its tough stance on Iran in nuclear negotiations, and the broad similarity of their policies on conflicts across the Middle East. However, Saudi Crown Prince Mohammed bin Salman’s uncompromising efforts to counter Iran’s growing influence in the Middle East are sometimes perceived as reckless in Paris. Macron dined with Hariri and Prince Mohammed in Paris in April after a conference to rally international support for an investment program to boost the Lebanese economy. Hariri, who visited Riyadh in February for the first time since the November crisis, is working to form a new coalition after a May 6 parliamentary election which strengthened his rival Hezbollah and its political allies. They won just over half the seats in parliament, while Hariri lost over a third of his seats. Under Lebanon's sectarian power-sharing system, though, he remains the frontrunner to form the next government. (Reporting By Stephen Kalin; Editing by Raissa Kasolowsky) Copyright 2018 Thomson Reuters.