Introduction to the evening news 11-10-2011

Up until this moment, the general strike scheduled for tomorrow is still on, after failing to reach a last-minute agreement initially prepared in Ain el Tineh, only to fade away later on at the Grand Serail. Yet, all the options are possible at a time when the General Labor Union’s meeting is still open and the contacts coordinated by Speaker Nabih Berri’s political assistant Minister Ali Hassan Khalil are ongoing.     

This blurry result sparked controversy on all levels; the Teachers Union voiced its commitment to the strike, while the General Secretariat of Catholic Schools’ stance remains unknown. The Association of Lebanese Banks distributed a normal working-day statement while the Bank Staff Union had previously announced its adherence to the strike. Furthermore, the Middle East Airlines' Employees' and Workers' Association announced it will participate in the strike while the airport will maintain normal activity.     

The announced strike, the dispute over the minimum wage increase, and the rate of cumulative increase on wage scales; all these are different components of a wider financial and economic crisis that mirrors the global financial turmoil, the repercussions of the regional incidents surrounding Lebanon and the structural imbalance of Lebanon’s debt-burdened economy and finances. The World Bank tuned down its expectations for growth in Lebanon this year from 7% last January to 4%.       

In parallel, disputes are rising within the cabinet, namely over the budget that was presented by Minister Safadi last week.General Michel Aoun refused any consumption tax, above all the VAT increase.      

Another blast threatening the budget is the STL funding issue; one must mention here Omar Karami’s remarks following his meeting with Hezbollah’s leader Sayyed Hassan Nasrallah in the last few hours. “The STL funding issue will not be passed at the cabinet or at the parliament”, he said.