Lebanon PM-Designate Quits as President Rejects Cabinet Lineup

(Bloomberg) --

Lebanon’s Prime Minister-designate Saad Hariri stepped down Thursday after his latest proposed cabinet lineup was rejected by the president, plunging the country deeper into a political crisis that’s compounded an economic meltdown.

“I presented my apology for not being able to form a government and God help the country,” Hariri told reporters after his slate of ministers failed to win the approval of the country’s president, Michel Aoun.

Aoun told Hariri that he needed more time and that the two won’t agree on this cabinet, Hariri said.

Aoun will now have to name a new candidate as prime minister after consulting with parliament. In September, former ambassador Mustapha Adib failed to form a government, citing opposition from political parties.

Hariri suggested a government of non-partisan experts to manage the financial crisis that’s depleted foreign currency reserves and driven legions of Lebanese into poverty. Aoun, an ally of the Iran-backed Hezbollah group, says his position as president allows him to name Christian ministers close to him and has sought veto power in the new government.

The international community, primarily former colonial power France, has been pushing politicians to form a government quickly and begin implementing reforms that would unlock donor funds and resume stalled talks with the International Monetary Fund. Paris has threatened politicians with sanctions if delays persist.

Lebanon has been under a caretaker cabinet since August when outgoing Premier Hassan Diab resigned in the aftermath of massive explosion at Beirut’s port that killed at least 200 people and destroyed swaths of the capital. The government, which defaulted on $30 billion in international debt over a year ago, has struggled to implement reforms given its limited authority and political backing.

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