Lebanon Prime Minister Hariri resigns as crisis turns violent
Beirut - Lebanese Prime Minister Saad
al-Hariri said he would submit his resignation on Tuesday,
declaring he had hit a "dead end" in trying to resolve a crisis
unleashed by huge protests against Lebanon's ruling elite.
The Sunni politician addressed the nation in a televised
address after a mob loyal to Shi'ite Muslim groups Hezbollah and
Amal attacked and destroyed a protest camp set up by
anti-government demonstrators in Beirut.
Lebanon has been paralysed by the unprecedented wave of
protests against the rampant corruption of the political class
that has collectively led Lebanon into the worst economic crisis
since the 1975-90 civil war.
"For 13 days the Lebanese people have waited for a decision
for a political solution that stops the deterioration (of the
economy). And I have tried, during this period, to find a way
out, through which to listen to the voice of the people," Hariri
said in his speech.
"It is time for us to have a big shock to face the crisis. I
am going to the Baabda (presidential) palace to present the
resignation of the government. To all partners in political
life, our responsibility today is how we protect Lebanon and
revive its economy."
In central Beirut, black-clad men wielding sticks and pipes
wrecked the protest camp that has been the focal point of
countrywide rallies against the long entrenched elite.
The turmoil has worsened Lebanon's acute economic crisis,
with financial strains leading to a scarcity of hard currency
and a weakening of the pegged Lebanese pound. Lebanese
government bonds tumbled on the turmoil.
The show of force in Beirut came after Hezbollah leader
Sayyed Hassan Nasrallah said last week roads closed by
protesters should be reopened and suggested the demonstrators
were financed by its foreign enemies and implementing their
agenda.
It is the most serious strife on the streets of Beirut since
2008, when Hezbollah fighters seized control of the capital in a
brief eruption of armed conflict with Lebanese adversaries loyal
to Hariri.
Lebanese Prime Minister Saad Hariri speaks during an address to the nation in Beirut. Picture: Hassan Ammar/AP
PROTEST CAMP TORCHED
Smoke rose as some of the protester tents were set ablaze by
Hezbollah and Amal supporters, who earlier fanned out in the
downtown area of the capital shouting "Shia, Shia" in reference
to themselves and cursing anti-government demonstrators.
"With our blood and lives we offer ourselves as a sacrifice
for you Nabih," they chanted in reference to Parliament Speaker
Nabih Berri, head of the Amal Movement. "We heed your call, we
heed your call, Nasrallah," they chanted.
Security forces did not initially intervene to stop the
assault, in which protesters were hit with sticks and were seen
appealing for help as they ran, witnesses said. Tear gas was
eventually fired to disperse the crowds.
LEBANESE POUND UNDER PRESSURE
Nationwide protests since Oct. 17 have paralysed Lebanon at
a time of worsening financial crisis - banks were closed for a
10th day on Tuesday along with schools and businesses.
Hariri's resignation would defy the powerful Hezbollah -
Nasrallah has twice said that he was against such a step, citing
the risk of a dangerous void.
According to the constitution, Hariri's cabinet would stay
on in a caretaker capacity until a new government is formed.
Hariri last week sought to defuse popular discontent through
a batch of reform measures agreed with other groups in his
coalition government, including Hezbollah, to - among other
things - tackle corruption and long-delayed economic reforms.
But with no immediate steps towards enacting these steps,
they did not placate the demonstrators, whose demands include
the resignation of his coalition government.
A senior official from outside Hariri's Future Party had
told Reuters earlier on Tuesday the premier would "most
probably" announce a government resignation on Tuesday. The
report weighed on Lebanese dollar bonds.
Central bank governor Riad Salameh called on Monday for a
solution to the crisis in just days to restore confidence and
avoid a future economic meltdown.
A black market for U.S. dollars has emerged in the last
month or so. Three foreign currency dealers said a dollar cost
1,800 pounds on Tuesday, weakening from levels of 1,700 and
1,740 cited on Monday.
The official pegged rate is 1,507.5 pounds to the dollar.
Salameh told Reuters on Monday the central bank would maintain
the pegged rate when banks reopen.
"Even if the protesters leave the streets the real problem
facing them is what they are going to do with the devaluation of
the pound," said Toufic Gaspard, an economist who has worked as
an adviser to the IMF and to the Lebanese finance minister.
"A very large majority of the Lebanese income is in the
Lebanese pound, their savings are in the Lebanese pound and
their pension is in Lebanese, and it is certain it has already
started to devalue," he said.