Progress noted in the European action plan

Adopting budget and improving public finance are necessary

The EU announced progress in implementing the EU-Lebanon European Neighbourhood Policy (ENP) Action Plan, according to a progress report published this week by the European Commission.

The report noted the signing of the Regional Convention on Pan-Euro Mediterranean preferential rules of origin. The report said that “a new national support strategy for Small and Medium Enterprises (SMEs) is expected to contribute to an improvement in Lebanon’s business environment.”

Progress was also achieved in public finance management, with fiscal accounting becoming more compliant with international standards and through a more effective allocation of public resources. The Ministry of Finance (MoF) drafted a medium-term expenditure framework. But as in previous years, the draft budget was not approved by Parliament.

Weakened institutions did not allow strategic economic and social policy choices to be adopted and implemented, the report said. “Issues such as high unemployment, growing poverty, a widening gap in public finance coupled with shrinking energy and water supplies, remained unaddressed,” the report said.

The restricted functioning of the legislature, the limited effectiveness of the executive body, and the serious security challenges did not constitute an appropriate ground for reforms, the report said. There were no tangible developments with regard to legislation to make the fight against corruption more effective.

The influx of refugees from Syria continued to be a challenge for the education system and a considerable strain on the public education infrastructure in poor parts of the country.

A successful security policy, maintenance of internal stability and ongoing economic resilience were highlighted in the report. These achievements may be seen as the most important factors in ensuring the stability and unity of the country.

The report made economic recommendations, including taking measures to alleviate the public’s burdens from the deteriorating economic and social situations, adopting policy measures that stimulate job creation, supporting local development, enhancing the provision of social and health services, and normalizing the provision of electricity and water.

The report also urged enhancing the national response to the Syrian refugee crisis, and adopting the budget and improving public finance management to enable targeted public spending in support of government policies.

The European Neighbourhood Policy Progress Report 2014-Lebanon, evaluates the Action Plan agenda in various sectors including human rights, security, migration, economic and trade issues, social policies, and education.