EU announces half billion euros in aid to Lebanon 'if criteria are met'

President Joseph Aoun met the European Commissioner for the Mediterranean, Dubravka Šuica, at Baabda Palace on Friday, who announced the granting "of half a billion euros in aid [to Lebanon], if the criteria are met, including the restructuring of the banking sector and an agreement with the International Monetary Fund."

According to a source at the European Union (EU) representation in Lebanon, this amount is part of the one billion euros in aid already promised by European Commission Chief Ursula von der Leyen during her visit to Lebanon last May. Half of this budget has already been released, and the half-billion announced by Šuica on Friday is the second installment.

The European official stated from the presidential palace that "the commission and the European Union support President Joseph Aoun and the new government." She said that "the meeting was positive and focused on political transformation [in Lebanon], the expected reforms, the cease-fire [with Israel], and support for the Lebanese army," which is currently deployed at the borders.

The aid program announced by Von der Leyen is expected to extend until 2027, to support a series of areas, notably "social and economic stability," and strengthen "essential sectors" such as education, social security, and health.

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Israeli aggression sets Lebanon back a staggering $14 billion

The European Commission chief said that the EU would help Lebanon "move forward with economic, financial, and banking reforms," which are "crucial." Aid is also expected to be provided in this program for "security forces and the army," particularly with equipment and training to "control the borders."

More than 4,000 people were killed, and damages amount to several billions of dollars after more than 15 months of clashes, then war, between Hezbollah and Israel, in a Lebanon already severely affected by more than five years of economic crisis. According to a World Bank report soon to be finalized, the total amount of damage and accumulated economic losses would amount to around 14 billion dollars, while the financing needed to get the country back on its feet would amount to about 12 billion.

Since the cease-fire between the two belligerents came into effect on Nov. 27 last year, the country elected Joseph Aoun as president on Jan. 9, ending more than two years of vacancy and promising deep reforms. Prime Minister Nawaf Salam formed his government a month later and set the same goals.

The European leader also met Parliamentary Speaker Nabih Berri on Friday at his headquarters in Ain al-Tineh. According to a press release issued by the state-run National Information Agency (NNA), the talks focused on developments in Lebanon and the region, as well as the impact of the war on Lebanon. Berri and Šuica discussed the Israeli army's maintenance of positions in southern Lebanon, despite the ceasefire agreement calling for a total withdrawal. They also discussed relations between Lebanon and the EU.