Paris III conference to go ahead despite protests

12 January 2007

The international donors' conference in Paris is set to go ahead despite opposition attempts to derail the government's reform plans, with a $1,000 million commitment from the US the latest sign of support for Prime Minister Fouad Siniora.

Protests on the streets of Beirut by opposition parties and labour unions are unlikely to prevent the conference, aimed at revitalising the country's economy, from going ahead on 25 January, say Beirut-based diplomats.

'The conference will go ahead. Even though opposition parties are hoping to put pressure on the government by staging protests outside ministry buildings, none of those backing the conference will allow Siniora to fall,' says one European diplomat. Washington is understood to have committed up to $1,000 million towards reviving the Lebanese economy, with Paris and Riyadh also expected to contribute at the conference. 'The Lebanese government will be supported whatever the case,' says the diplomat.

'For the Saudis, it's a red line that cannot be crossed. And the French and the US do not want to see a new national unity government made up of predominantly Shia opposition groups.'

French officials are continuing with their plans to stage the conference. 'We are doing our best to prepare for it despite all the political problems [in Lebanon],' says one official.

The General Confederation of Labour & Trade Unions and opposition protesters including Hezbollah, Amal and Free Patriotic Movement activists staged a protest against an increase in value-added tax on 9 January outside a tax office of the Finance Ministry. The proposed tax rise is part of Siniora's reform package that will be presented at the conference in Paris. 'The opposition is also planning to hold protests later in the week outside the Energy & Water Ministry and the Economy & Trade Ministry,' says the diplomat.

However, whether the government will be able to deliver reforms once the conference is over is still open to question. 'How will the government be able to privatise in the face of such opposition?' says the diplomat. 'How can you go to Paris with a reform agenda when half of your population is on the streets?'

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