There is no longer any need for Washington to be so solicitous towards Syria as was the case when there was a realistic chance of a Syrian-Israeli peace agreement. Assad will be keen to avoid Syria reverting to the terrorist-pariah status it had in the 1980s. This partly explains the enthusiasm with which Syria is embracing the EU's Mediterranean initiative and in turning Lebanon into its private economic engine by allowing Beirut to attract foreign investments, launch huge construction projects and reopen its financial markets while keeping its markets closed. As the last remaining active front in the Arab-Israeli conflict, Lebanon is and should be particularly sensitive to any increase of tension in the region. That price is not simply one of physical destruction.
Public revenues remain severely limited.
The government is currently looking at increasing mobile phone charges in order to help finance public sector wage increases. But the gaping holes in Lebanon's finances continue, for the time being, to be papered over with capital inflows. The government points to the capital flows as evidence of Lebanese expatriates' commitment to the rebuilding of their country. The linchpin of the government's scheme is the re-establishment of Beirut as a regional services center. To this end, local property company Solidere is overseeing the redevelopment of the Beirut Central District, while the government has awarded major contracts to expand Beirut airport and for the renovation of Beirut port.