May 26, 2011 – The European Neighborhood Policy (ENP) Progress Report for 2010 stated that the political stalemate and polarization, as well as the freeze imposed on the country’s constitutional institutions have hindered the progress of the reform agenda. 

“Due to the political impasse, the Lebanese parliament was not able to adopt a significant number of laws, which are essential for the implementation of the ENP Action Plan,” it said.

The report noted that the economy performed well in 2010 despite the global financial crisis. The report said that the country’s high debt level still poses a severe hindrance.

The report said that while some headway has been made in reducing short-term risks, large underlying vulnerabilities remain and new vulnerabilities could emerge in the future.

Economic and social reform

According to the report, the economic and financial performance in the course of 2010 was remarkable in the face of the global recession with an eight percent GDP growth. The fiscal deficit remains large, reflecting the high debt burden, which absorbs 45 percent of total state revenues and drastically limits economic growth potential.

The report said the main challenge for the Lebanese authorities is to manage rapid economic expansion by preventing overheating, and, simultaneously, carrying out structural reforms to promote sustained medium-term growth and macro-financial stability.

It said that confidence along with political stability, combined with the absence of regional tensions, is a prerequisite for financial stability.

Political dialogue and governance

The report noted a number of actions organized to make the reform process of the electoral system more inclusive.

 It also said Lebanon's periodic review took place in November 2010, pointing out some progress in the field of Human Rights.

The report voiced concern over the retention of the death penalty, the treatment of migrants and discrimination based on sexual orientation.

According to the report, Lebanon continued to enforce “dire living conditions” on most displaced people due to its refusal to ratify the 1951 Geneva Convention and 1967 Protocol relating to the status of refugees.

Also noted was the absence of legislative amendments in the fields of good governance and accountability, including the fight against corruption and bribery.

Justice and security cooperation

The report indicated that the Ministry of Justice prepared a law to re-organize and modernize the administration of justice.

It also said that Lebanon pursued national and regional cooperation measures in the fight against drug trafficking, and noted a draft revised law on money laundering, finalized in June 2010.

In the area of police and judicial cooperation, the report said Lebanon confirmed its interest in joining the European Convention on Cybercrime as well as other international instruments.