EN    EN EN 
 
EN    EN  EUROPEAN COMMISSION  
Brussels, 12.5.2010 
SEC(2010) 522 final 
  
COMMISSION STAFF WORKING DOCUMENT 
Accompanying the 
 
COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIA MENT AND THE COUNCIL 
Taking stock of the European Neighbourhood Policy (ENP) 
  
Implementation of the European  Neighbourhood Policy in 2009  
Progress Report Lebanon  
 
 
{COM(2010) 207 final} 
{SEC(2010) 513 final} {SEC(2010) 514 final} {SEC(2010) 515 final} {SEC(2010) 516 final} {SEC(2010) 517 final} {SEC(2010) 518 final} {SEC(2010) 519 final} {SEC(2010) 520 final} {SEC(2010) 521 final} {SEC(2010) 523 final} {SEC(2010) 524 final} {SEC(2010) 525 final} 
 
EN 2   EN 1. BACKGROUND AND OVERALL ASSESSMENT  
Lebanon and the European Community first es tablished contractua l relations in 1977 by 
signing a Cooperation Agreement. An EU- Le banon Association Agreement entered into 
force in 2006. It sets out in more detail the specific areas in which the relations can be 
developed bilaterally. On this basis, the EU-Lebanon ENP Action Plan was approved in 
January 2007 for a period of five years. The framework for regional co-operation is the Euro-
Mediterranean Partnership, inaugurated in 1995 and reinforced in 2008 with the creation of 
the Union for the Mediterranean (UfM), which establishes a policy with ambitious and long-
term objectives. 
EU-Lebanon meetings took place at the level of the Association Council, and five out of ten 
subcommittees meetings in the second ha lf of 2009. No Asso ciation Committee was 
organised in the course of the year. 
This document reports on progress made on the implementation of the EU-Lebanon ENP 
Action Plan between 1 January and 31 Decembe r 2009, although developments outside this 
period are also taken into consid eration where relevant. It is not  a general review of the 
political and economic situat ion in Lebanon. In addition, fo r information on regional and 
multilateral sector processes, please refer to the sectoral report. 
The most important political events in 2009 we re the June parliamentary elections and the 
appointment of a new national unity government headed by Prime Minist er Saad Hariri. The 
elections in June 2009 – held on the basis of the electo ral law adopted in 2008 – were 
generally peaceful and well organised, with a relatively high participation rate of 54  %. 
However, the negotiations involved in the fo rming of a government took five months to 
complete, and a government declaration of pol icy was not adopted un til December 2009. This 
long period of discussions held up reforms. 
The time taken in preparing for the elections  and forming a new government meant an 
extension of the ongoing standsti ll in political, economic and so cial reforms. Moreover, many 
draft laws, notably implementing the PARIS III agenda, and connected with Lebanon’s WTO 
accession remained blocked at the parliament. 
Generally speaking the security situation re mained stable throughout the reporting period, 
although tensions with Israel reappeared at th e end of the year. Furt her implementation of UN 
Security Council Resolutions (and 1701 in particular) was limited. The process of normalising 
relations with Syria continued, including the vi sit of PM Hariri to Damascus in December 
2009. There are still no signs of more tangible resu lts in the concrete bilateral dossiers already 
agreed in 2008 by the Presid ents of both countries.  
The Government declaration adopted in D ecember 2009 was supported by the vast majority 
of Parliamentarians (122 out of 128). It sets ambitious goals and reiterates the well known 
need to implement overdue reforms. The transl ation of this policy statement into operational 
terms should make it a concrete agenda for cha nge and lead to progress in the implementation 
of the EU Lebanon ENP Action Plan. 
In October 2009 the European Commission, thr ough the EU Delegation in  Beirut, organised a 
two-day conference on the implementation of the ENP. Five thematic round tables gave some 
700 participants - repres entatives of the Government, civil society, the private sector and the 
 
EN 3   EN EU - the opportunity to  evaluate the implementation of the ENP Action Plan in Lebanon and 
give input for the next stage of the work. The results proved that the ENP dialogue can help to 
build consensus around key reforms and eff ectively assist the reform process.  
2. POLITICAL DIALOGUE AND REFORM  
Democracy and rule of law 
Progress was achieved in the area of electoral reform  and should be consolidated. As 
independent election observers reported, the re vision of the electoral framework for the 2009 
parliamentary elections intr oduced some improvements (see last year’s report SEC(2009) 
518). The Constitutional Council was re-established ju st before the parliamentary elections in 
June 2009. Lebanon was one of only two countries  in the ENP South region which invited, 
and received, an EU Election Observation Mi ssion (EOM). The EOM praised the high voter 
turnout of 54  %, an increase of 8%compared to 2005) and the organisation of the elections. 
Nonetheless, it repeated many of  the recommendations of its 2005 predecessor and underlined 
its support for the proposals made by th e National Commission on electoral law. 
These included the introduction of a certain degree of proportionality, pre-printed ballot 
papers, creation of an indepe ndent election management body, st rengthened representation of 
women, lowering of the voting age to 18 and out-of-country voting for Lebanese citizens 
living abroad. However, the EU EOM noted that  there is still work to be done to bring 
Lebanon’s electoral system into line with the co untry’s international commitments. Outside of 
the reporting period, the Council  of Ministers adopt ed a number of proposals on which 
agreement was not found in time for implementa tion for the municipal elections taking place 
in May 2010.  
In the area of judiciary reform, a decree nominating the unit in charge of the computerisation 
of the Ministry of Justice and the Courts was adopted and some improvements are expected in 
the modernisation of the Lebanese judiciary.  Nevertheless, procedures are lengthy and 
inefficient and the judicial system is perceive d to lack credibility and transparency. Prisons 
remain overcrowded, detention conditions ar e poor and pre-trial detention is lengthy. 
Recourse to military tribunals remains a subject of concern. The EU is actively financing the modernisation of the Judiciary. 
No progress was achieved in the administrative reform  strategy prepared by the Minister of 
State for Administrative Reform, despite the fact that there are several draft laws waiting for 
adoption and implementation.  
Although Lebanon acceded to the UN Convention against Corruption  in April 2009, national 
legislation to implement the Convention is not  yet in place. The development of a national 
anti-corruption strategy to addr ess public and private sectors in line with commitments under 
the Convention is pending. Lebanon has lost gr ound in terms of perceived corruption in 
comparison with other countries. 
Some progress can be noted in the area of regional reform with workshops on 
decentralisation planned by the Ministry of the In terior. Further progress is expected with the 
implementation of the Early Release Law, in particular on the reduction of sentences. The 
transfer of prison management from the Mini stry of Interior and Municipalities to the 
 
EN 4   EN Ministry of Justice, which started in 2008, is continuing and should be completed by 2013. 
Both Ministers have affirmed that it w ill be a priority during their mandate  
Human Rights and Fundamental Freedoms 
Work on the National Action Plan for Human Rights  involving a wide range of stakeholders 
(government officials, parliamentarians a nd human rights defenders) continued during the 
reporting period. Despite the ratification of the Optional Protocol to the Convention against 
Torture and other Cruel, Inhuman or Degrad ing Treatment or Punishment (OPCAT) in 2008, 
the establishment of a National Preventive Mech anism (NPM) for the monitoring of detention 
centres and prisons (required within  one year of ratificat ion) was not finalised  in time. In June 
2009 the Minister of Justice set up a committee to  draft a legal proposal to establish the NPM 
and the committee submitted its proposal to the Ministry in September. The Ministry of 
Justice is still consulting othe r Ministries. No deadline has b een set for presenting the draft 
law to the Council of Ministers. 
The ratification of a number of international human rights conven tions is still blocked. As in 
previous years, Lebanon has eight overdue reports of UN Treaty Bodies and it has not 
extended a standing invitation to al l thematic special procedures. 
An organisational decree had alre ady been prepared in 2008 on the modus operandi  of the 
Ombudsman  institution.  However, so far the Council of Ministers has not voted on the 
decree, and the nomination of an office holder is still pending.  
In 2008 the Ministry of Ju stice drafted a decree fo r the abolition of the death penalty , which 
to date has not been discussed by the cabinet. More than 90 people have been sentenced to 
death, although a de facto  moratorium on executions, supported by the Minister of Justice, is 
currently in place. In August 2009 the Ministry  of Justice launched a campaign to gain 
support for the replacement of the death sentences  by life sentences with hard labour. Despite 
the de facto  moratorium, death sentences c ontinued to be issued in 2009.  
Limited progress can be reported in the area of  a comprehensive human rights strategy and the 
fight against torture. Incidents of torture and ill-treatment  were reported, as were cases of 
arbitrary detention, although one long-running case of arbitrary detention was resolved in 
2009. The Human Rights unit within the Lebanese  Internal S ecurity Forces, which was 
created during the previous reporting period and ha s no equivalent in any other security organ, 
lacks proper budget and staffing, lim iting its operational capacities. 
No significant progress was reported in the area of freedom of expression , although Lebanon 
maintains one of the most open and diverse me dia environments in the Middle East. On the 
other hand, media independence is limited, with outlets largely representing the views of 
political interests/benefactors. Cases of in timidation of journalists  were reported. The 
importance of independent and critical medi a could be observed during the 2009 electoral 
campaign. Detailed media monitoring by the Supervisory Commissi on on the Electoral 
Campaign and the EU Election Observation Mi ssion showed that media coverage of the 
campaign tended to be partial a nd shaped around politic al lines. There is a need to implement 
effective mechanisms to ensure compliance w ith, and enforcement of, media regulations in 
Lebanon. 
Progress can be reported in the area of freedom of association.  Civil society organisations in 
Lebanon benefit from relatively  liberal legislation. While de facto denials of registration had 
 
EN 5   EN been reported in the past, this situation impr oved with the introduction at the end of 2008 of 
new, simplified procedures for registering as sociations. No denials were reported in 2009. 
Palestinian NGOs must include Leba nese board members in order to be eligible to  register. In 
the past this has impeded certain registrations.  
Some progress was achieved in  the social integration of  migrants . In January 2009 a decree 
was adopted for the regulation of employment agencies that bring women migrant domestic 
workers to Lebanon. In addition, a Unified C ontract for Migrant Domestic Workers was 
prepared in February 2009. However, enforcem ent remains critically weak, as cases of 
exploitation, mistreatment and high rates of unnatural deaths  among women domestic migrant 
workers continue to be reported.  
In the area of asylum and protection of ref ugees progress remains insufficient. The overall 
situation of Palestine refugees in Lebanon1 (around 425,000 are register ed with UNRWA, of 
whom an estimated 330,000 are resident)  remained unchanged th roughout the reporting 
period. Palestine refugees’ right to work and register propert y is not secured. A group of ‘non-
identified’ refugees of Palestinian origin is still waiting for documents to be issued. This 
process was halted in 2009 by the Ministry of the Interior following a number of fraudulent 
applications. The EU has called for it to be restarted. The new national unity Government emphasised its determination to improve the econo mic and social rights of Palestine refugees 
as well as living conditions  in the refugee camps.  
Since Lebanon has neither ratif ied the 1951 Geneva Convention nor implemented a domestic 
refugee law, refugees and asylum seekers (m ostly Iraqis but also Sudanese) do not receive 
appropriate protection, despite being recogni sed by UNHCR. While the number of Iraqis in 
Lebanon is estimated at between 25,000 and 50,000, there are about 8
 ,700 Iraqis registered 
with UNHCR. Many refugees are treated as ille gal immigrants and a small number have been 
subject to arrest, fines and i ndefinite detention, linked to the fact that Lebanon does not 
recognise UNHCR certificates. Refoulement was exercised or was attempted but prevented 
following intervention by civil society. Condition s in the temporary de tention centre remain 
extremely poor. 
No progress was made on lifting Lebanon’s rese rvations regarding the Convention on the 
Elimination of all Forms of Discrimination against Women  (CEDAW).  
During the reporting period Lebanon worked on dr aft laws granting women equal rights with 
men in the transfer of nationality to their children. An important precedent was set in June 2009, when a court ruled against the Lebanese state for denying a Lebanese woman the right 
to transfer nationality to her children, who we re born of a foreign father. In cases where 
Lebanese women are married to Palestinian men, the possibility of transferring nationality would be excluded according to one of the draft laws. 
A draft law on family violence was finalised by a parliamentary committee at the request of 
the Ministries of Justice, Interior and Social  affairs at the end of 2009 and was transmitted to 
the Council of Ministers. 
                                                
 
1 Without prejudice to the settlement of the Palestinian question in the framework of the regional peace 
process. 
 
EN 6   EN In April 2009 Lebanon completed a comparative analysis of the gaps between national 
legislation and internationa l conventions regarding the rights of children . Throughout the 
reporting period Lebanon worked on  a draft for a Child Protection Policy that also addresses 
child labour. 
The UN Convention on the Rights of Persons with  Disabilities has still not been ratified. 
As far as fundamental conventions and core labour standards are concerned, no progress 
can be reported on the ratification of the Inte rnational Labour Organisation Convention 87 on 
Freedom of Association and Protec tion of the Right to Organise. 
Cooperation on foreign and security policy, regional and international issues, conflict 
prevention and crisis management  
Lebanon is one of the European Union's key part ners in the Middle East . So far dialogue in 
this area has focused on the implementation of  relevant UN Security Council Resolutions 
pertaining to Lebanon and on th e establishment of the Sp ecial Tribunal for Lebanon.  
The mandate of the UN Independent Intern ational Investigation Commission (UNIIIC)  came 
to an end in February 2009 and the Special Tr ibunal for Lebanon began its work in March. In 
June 2009, the Office of the Prosecutor of th e Special Tribunal and the Government of 
Lebanon entered into a Memorandum of U nderstanding on the modalities of their 
cooperation. The European Commission provide d political and financial support to the 
creation of the Special Tribunal. 
Normalisation of  relations with Syria  continued. Ambassadors were appointed, the 
respective embassies were opened and Lebanese pol iticians made official visits to Damascus. 
No particular progress was ach ieved on other pending issues, su ch as the renegotiation of 
bilateral agreements and a genui ne dialogue on the fate of pe ople who have disappeared in 
Lebanon. The Government's policy declaration refe rs to the possibility of forming a National 
Committee to deal with the issue of victims of enforced disapp earance. The reactivation of the 
Joint Committee on Border Delimitation and str onger cooperation in border control and 
management has not yet taken place, pending Syria's nomination of its participants. ( More on 
border control in chapter 5 ).  
Discussions on a national defence strategy under th e auspices of the Pres ident were suspended 
as of June 2009. Meetings restarted after the reporting period, in 2010. 
Lebanon has not yet ratified the statute of the International Criminal Court,  nor has it 
ratified the 1997 Ottawa Convention on the Pr ohibition of the Use, Stockpiling, Production 
and Transfer of Anti-Personnel Mines and on thei r Destruction. In addition, the ratification of 
the Convention on Cluster Munitions is pendi ng (although Lebanon was one of the first to 
sign the Treaty in December 2008). The EU con tinued to help Lebanon rid the country of 
cluster munitions and unexploded ordnance. In 2009, thanks to projects funded by the EU, 2.3 
million square metres of land were cleared.  
3. ECONOMIC AND SOCIAL REFORM  
Macroeconomic framework and functioning market economy 
The Lebanese economy was quite robust in spite of the global financial crisis. Real GDP 
growth is expected to have  reached between 5% and 7  % in 2009, somewhat down from the 
8.5 % growth reported in 2008. Capital inflow, largel y a result of regional portfolio shifts in 
 
EN 7   EN the aftermath of the global cris is, was the main driver of the strong growth. Heightened 
interest rate spreads on intern ational markets, EMBI and Eur obond spreads for instance, led to 
an increase in foreign deposits in Lebanese ba nks. The banks also benefited from their image 
as a relatively safe destination for invest ment. Globally, their deposits increased by 23  % 
during 2009. As a result, the current account surplus increased, as did the foreign reserves of the Central Bank. In addition, the high number of  visitors during the election period (June 
2009) and the summer, mainly Lebanese expatriate s, as well as the spending related to the 
electoral campaign, boosted domestic expenditure. Ho wever, the high interest rate differential 
was also instrumental in maintaining at high leve ls the cost of financi ng the public debt. Debt 
service absorbed 48
 % of total state revenues in 2009.  
This inflow of foreign deposits helped to alle viate the negative impact of the international 
economic crisis on the remittances  of the Lebanese diaspora (which accounted for no less than 
1/5 (24.4  %) of GDP in 2007), but had a limited imp act on consumption and investment. As 
domestic banks form the largest creditor gr oup to the Govern ment and hold more than 55  % of 
total public debt, the increase in deposits he lped to absorb high-yielding government bonds. 
However, weak lending opportunities for banks and excessive remunerated liquidities with a 
negative impact on their profita bility led the Government to borrow beyond its needs, as 
reflected by the growing gap between the values of gross and net debt. State deposits at the 
Central Bank reached more than USD 5.5 billion (EUR 3.87 billion) at the end of November 
2009, i.e. around 11  % of the total debt. In this c ontext, gross debt stood at 156  % of GDP at 
the end of 2009, excluding paymen t arrears, only a sl ight improvement compared to the end 
of 2008, when it was 160  %. This elevated debt ratio goes hand in hand with a high public 
deficit. The Government's budget balance is expected to have broadened to 12.3  % of GDP in 
2009 from 9.9  % in 2008. The main reasons are increased  salaries and pens ions in the public 
sector, reconstruction and comp ensation expenses and a rise in debt service. However, 
international support did help to alleviate the pressure on public finances. This included the 
first tranche of grants and loans (EUR 15 m illion and EUR 25 million respectively) under the 
EU Macro-Financial Assistance (payments were made in December 2008 and May 2009 and 
will be primarily used for debt reduction) . In December 2009, the European Commission 
adopted a decision extending the availability pe riod for the disbursement of the second grant 
and loan tranches by one year until Decem ber 2010. Actual disbursements will depend on 
Lebanon meeting the requirements. 
The international economic crisis had a consiste nt impact on industry and agriculture as trade 
volumes started to decelerate at the beginni ng of 2009. This decrease mirrored the slowdown 
in the major trading partners, namely the Gu lf Cooperation Council (G CC) countries and the 
countries of the EU, which account for around 50  % and 12  % of total Lebanese exports. 
Industrial exports fell by 14.9  % and agricultura l exports by 7.2  %. The total trade deficit 
remained at the same high level as in 2008, amounting to 40.8  % of GDP, mainly because of 
the country's high dependence on im ports of oil derivatives. However, the international crisis 
made a positive contribution to reducing inflati on. Consumer price inflation as measured by 
the Consumer Price Index (CPI ) fell from more than 10  % on average in 2008 to around 4  % 
in 2009. Food prices remained constant, but th ere were still strong increases of up to 17  % in 
basic services such as transport, education, water and electricity. The increase in transport 
cost can be attributed to the introduction of excises currently amounting to almost one third of 
petrol prices.  
Economic activity is expected to  remain fairly strong in the short term. However, there are 
downside risks associated with the strength of global recovery, whic h might have negative 
consequences on capital inflows in the countr y. The heavy debt burden and high reliance on 
 
EN 8   EN external capital inflows render the Lebanese  economy and banking sector sensitive to 
conditions in global financial markets. The fis cal situation remains pa rticularly vulnerable, 
given the high level of public debt. Moreover, a slowdown in deposit growth with commercial 
banks could tighten financing conditions for th e Government, while political stalemate has 
prevented implementation of the overdue reform agenda.  
Employment and social policy 
As regards the socio-economic situation  in Lebanon, many social reforms foreseen under the 
‘Paris III’ reform agenda were delayed because of the political situation in Lebanon during the reporting period. 
As regards the fight against poverty and the  social action plan, a pilot project testing a 
poverty targeting mechanism was successfully carried  out by the Ministry of Social Affairs in 
early 2009 in three regions and it s country-wide roll-out is curre ntly underway. The Ministry 
also published during the repor ting period studies on household living conditions and income 
distribution. There are no updated figures on the number of people living under the poverty 
line. Further efforts are needed to elaborate a comprehensive social stra tegy and to involve all 
the relevant Ministries and services. 
No progress can be reported as regards employment.  The National Employment Office 
benefits from capacity building measures from  the International La bour Organisation (ILO) 
and the European Union. A decree for the re gulation of employment  agencies recruiting 
migrant workers was passed in January 2009 and a unified contract for migrant domestic 
workers was decided in February 2009. However,  the implementation of these new measures 
remains weak.  
No progress can be report ed in the fields of pension reforms and reform of the social 
security system , although following the formation of th e Government the new Minister of 
Labour began examining how to reform the Nati onal Fund for Social Security and expand its 
coverage.  
On social dialogue , the new labour law has not yet been adopted and the Economic and 
Social Council did not meet in the peri od under review. The capacity of the labour 
inspectorate was nonetheless increased, doublin g in January 2009 (60 inspectors). During the 
reporting period Lebanon worked on a Decent Work Country Programme with the ILO. 
Women’s  participation in political life remains lo w. In August 2009 the General Assembly of 
the National Commission for Lebanese Women launched an awareness campaign to encourage women to participate in the 2010 m unicipal elections (only four women were 
elected in the Parliamentary elections of June 2009). While in March 2009 women accounted 
for 41
 % of the total labour force in Lebanon, the gr eat majority are work ing in the informal 
sector. In addition, women still suffer from  a gender pay gap of approximately 27  % and 
unmarried women workers reportedly face discrimi nation in terms of sick  leave. In December 
2009 the Chamber of Commerce, Industry and Agriculture of Beirut and Mount Lebanon 
jointly signed a Memorandum of Cooperation as  well as a Common Work Plan with the 
National Commission for Lebane se Women’s Affairs to promote gender equality.  
Concerning the integration of sustainable development  into sectoral policies, the Ministry of 
Education and Higher Education has continued to implement the first of three curriculum 
modules on Education for Sustainable Developm ent (the so-called ‘environment module’). 
 
EN 9   EN As regards the preparation of a comprehensiv e strategy for sustainable development, as 
already reported last year, a roadmap entitled ‘Schéma directeur d’aménagement du territoire 
libanais’  was adopted by the Council of Minister s in March 2009 and, once applied, it should 
reinforce Lebanon’s planning capacities. 
In December 2009, the Ministry of Agriculture  prepared a strategic framework for the period 
2010-2014, covering the main actions in the area of  agriculture as foreseen in the ENP Action 
Plan, including legislation, the organisational structure of th e Ministry, and a quality and 
credit scheme for agriculture. The framework and its implementation programme also cater 
for the reinforcement of  controls on agricultura l products, forests and fisheries . 
4. TRADE -RELATED ISSUES , MARKET AND REGULATORY REFORM  
The EU is Lebanon's first trading partner. Bilateral trade  in goods with the EU continued to 
grow, amounting to more than EUR 4.5 billio n in 2009, with a significant trade deficit for 
Lebanon . Imports from the EU rose by 6.6  %, while exports fell by 28.8  %. During the 
reporting period, tariff dismantling on industrial goods took place as planned under the Association Agreement. Concerns regarding the treatment of goods origin ating in the EU and 
transiting through Beirut port free zone be fore entering Lebanon were allayed by an 
amendment to the Lebanese Customs Law in June 2009 and a mechanism for its application 
adopted in December. Lebanon and the European Union concluded negotiations on the text of 
the Protocol for the Settlement of Bilateral Tr ade Disputes, which was initialled in July 2009. 
Negotiations on the liberalisation of trade in agricultural, processed agricultural and fish and fisheries products have not yet been launc hed. Lebanon continued working on its WTO 
accession; the last Working Party meeting took  place in October 2009. However, several 
relevant draft laws have still not been discu ssed by Parliament, or re quire revision, including 
the law on international trad e and licensing. Lebanon confir med its intention to make 
headway in the bilateral negotiations on servic es with the EU in the context of the WTO 
accession. Lebanon reiterated its commitment to pa rticipating in regional and sub-regional 
trade initiatives, including concluding an FTA with Turkey.  
The computerisation of the Customs  administration is progre ssing, and in 2009 the customs 
declaration processing system ASYCUDA World was rolled out to three additional customs 
offices. Several projects in the IT area are also ongoing, including one on an automated risk 
management system for customs. A project w ith the IAEA on the c ontrol of radioactive 
material crossing the border between Leba non and Syria will run until the end of 2010. 
On the free movement of goods and on technical regulations, Lebanon continued to 
prepare for the negotiations of  an Agreement on Conformity Assessment and Acceptance of 
Industrial Products (ACAA), albeit slowly. The ACAA action plan was sent to the 
Government already in 2008, but has not yet been  adopted. A number of draft laws are still 
waiting for the Council of Minist ers’ and/or parliamentary appr oval. These incl ude draft laws 
on product safety and product liability, as well as a draft law on standardisation which will 
establish the independence of the standardisation body. Amendmen ts to the accreditation law 
and to the law on metrology are also pendin g. Nomination of directors to the quality 
infrastructure bodies is underway. The Govern ment has established an Excellence Award 
based on the EU quality assessment model. At enterp rise level, an ‘ISO certification initiative’ 
raised awareness on quality issues. A quality promotion campaign has also reached schools and universities. In the area of  market surveillance and cons umer protection, training of 
inspectors in municipalitie s took place in the context of an EU-funded programme. 
 
EN 10   EN Regarding sanitary and phyto-sanitary  (SPS) issues, the draft food safety law, which 
includes the establishment of a f ood safety agency as well as a draft law on animal quarantine, 
are still stalled in Parliament. Lebanon strengthened its current SPS-related institutions, such 
as the food-related part  of the Consumer Protection Dir ectorate, laboratories and regional 
control centres.  
Several proposals to improve the business climate are waiting for appr oval, including the 
establishment in post offices of one-stop shops for setting up a business and making the company register available on-line. Leba non also continued work on its framework 
bankruptcy law. The draft e-commerce law is still being discussed at the Parliament. 
As regards company law and the right of establishment , the adoption of the 2006-2009 
budget laws eliminating fees for company regi stration is still wai ting for parliamentary 
approval. Lebanon is also working on furthe r streamlining company registration. Lebanon 
continued with its preparations to adopt international audit an d accounting standards. 
Lebanon took part in the regiona l phase of negotiations on th e framework protocol for the 
liberalisation of services  and the right of establishment, as indicated in the tw o earlier reports, 
but bilateral negotiations have not yet been la unched. Lebanon is prep aring for accession to 
the WTO and for the establishment of a comprehensive framework for services.  
In the field of financial services  there are still some weakne sses in the banking sector. In 
November 2009 a small unit was set up in the Central Bank to reflect specifically on corporate governance in the financial and banking sector. Lebanon is following the IMF 
recommendations in the Financial Sector Assessment Programme (FSAP), including the 
implementation of the Basel II principl es for effective banking supervision. 
Other key areas 
As reported last year, the Tax Procedure Code entered into fo rce in January 2009. No further 
progress can be reported on the implementation of  the Action Plan commitments in the area of 
taxation.  
In the field of competition, limited progress can be reported. The draft  law has been in the 
Parliament since 2007. It will be returned to th e Council of Ministers for amendment. 
Competition study visits to Europe were or ganised in early 2009. In May 2009, the EFTA 
seminar on competition policy was attended by many stakeholders. No progress can be reported on state aid.  
Key legislative acts as well as  accession to inte rnational conventions in the field of 
intellectual property rights  are still pending in Parliament. While enforcement of these 
rights and the fight against piracy are still matters of concern, duri ng the reporting period 
Lebanon took a number of awareness-raising and training initiatives and made efforts to 
penalise outlets selling counterfeit pharmaceuticals. Since May 2009, the Ministry of Economy and Trade and the Head of the Beirut  port customs inspection office are directly 
connected. This gives port officials access to de posited trademarks and patents with a view to 
fighting piracy. A new consumer protection  law, which includes a number of provisions on 
trademarks, was drafted dur ing the reporting period and is pending in Parliament. 
 
The draft public procurement  law as well as the draft public procurement management law 
are still waiting for parliamentary approval. Like last year, these draft laws provide for better judicial review of procurement disputes. The re form of procurement legislation as well as the 
establishment of a state procurement agency should be considered as priorities. 
 
EN 11   EN The National Master Plan for Statistics , which was presented to th e Council of Ministers in 
2008, has not yet been adopted. It ra ises the issue of the degree of independence of the Central 
Administration for Statistics, which is currently under the direct control of the Prime Minister. The details of its implementati on and funding are still to be de fined and further efforts are 
needed to enhance inter-agency cooperation and to broaden the coverage  and the availability 
of statistical data. 
On external audit , outside the reporting period a new Pr esident was appointed to the Audit 
Court, but lack of qualified staff and internal  resources undermines th e institution’s capacity 
to exercise its functions a nd fulfil its reform agenda.  
In the area of public finance reform and in ternal financial control , in April 2009 Lebanon 
ratified the United Nations Convention agains t Corruption. The audits of the 2001-5 account 
of the National Social Security Fund were completed in August 2009. As was the case in 
2008, a Central Audit Coordination Un it within the Ministry of Fi nance has still not been set 
up. 
On enterprise policy , Lebanon continued to implement the Euro-Mediterranean Charter for 
Enterprise. Some progress was achieved in the institutional setup: the Small and Medium 
Sized Enterprises (SME) unit is now monitori ng progress in the business environment and 
business support services. It provides services including info rmation, counselling, training and 
promotion. The Government gives loans to spec ific sectors (e.g. agriculture and hospitality). 
The Bank of Lebanon also gives concessional lo ans for investments. Several business support 
initiatives were implemented in 2009 in various regions of Lebanon. Lebanon also 
participates in a pilot project on entreprene urial skills development in higher education 
coordinated by the European Training Foundation. 
5. 
COOPERATION ON JUSTICE , FREEDOM AND SECURITY  
In the area of border management,  progress was limited for lack of an overarching 
Integrated Border Management strategy. Plans were developed for the gradual extension of 
the Common Border Force from the Northern border with Syria to the East and for the 
modernisation of Beirut airport, ports and land crossing points. Major in frastructure work has 
already started with a view to improving th e Masna’a border crossing. Lebanon made other 
efforts to improve the management of its external  borders, with better controls at seaports and 
the modernisation of Beirut airport. Operatio nal meetings with Syri a were re-launched. 
Improved coordination led to the re-opening of two border check-points in the second half of 
2009. However, a more structured sharing of in telligence involving al l relevant agencies 
along with coordinated provision of training w ould help to capitalise on these recent positive 
developments. Improving the management of Lebane se borders is among the priorities of the 
new Government. The appointment of a nati onal border coordinator in March 2010 should 
accelerate the work.  
In the area of migration and asylum , no major progress can be re ported. The country hosts a 
large quantity of labour migran ts, including many domestic wo rkers of Asian origin, and 
many migrants in need of inte rnational protection, particular ly from Iraq. Both categories 
continue not to be offered sufficient protection and the country’s legislat ion in this area needs 
further development.  
With regard to the fight against organised crime, as was the case in 2008 no specific 
developments took place on the implementation of new national legislation. Work continued 
 
EN 12   EN on the compliance of national legi slation with relevant UN inst ruments and on a draft law on 
Internet use for commercial criminal purposes in  the context of the fight  against cybercrime.  
With regard to the fight against trafficking in human beings, robust legal mechanisms and 
references within the criminal code are urgen tly needed to tackle this phenomenon effectively 
and raise public awaren ess of its dimensions (see Chapter 2) . Specific measures need to be 
defined to combat child pornography on the inte rnet, over and above the measures taken in 
compliance with Lebanon’s ratification of the Optional Protocol on the Sale of Children, 
Child Prostitution and Child Pornography to the UN Convention on the Rights of the Child. 
As was the case in 2008, the lack of official statistics prevents a full assessment of the 
trafficking of women and children.  
Lebanon took national and regional coopera tion measures in the fight against drug 
trafficking  with a number of striking successes. An illegal laboratory was dismantled near the 
northern border in April 2009, while extensive ha shish crops were eradicated in August and 
September 2009. Eradication efforts were combin ed with counter-narcotics campaigns to 
discourage the reappearance of hashish cultures. However, pove rty, isolation and alienation 
from state structures act as significant obst acles to these eradica tion efforts. Drug demand 
remained steady but with a significant increa se in the use of amphetamines and other 
synthetic drugs. Drug trafficking st arted up again across the border with Israel after the end of 
the hostilities. On the other hand, improved relations with Syria helped to curb drug 
trafficking on Lebanon’s eastern border, result ing in larger seizures of stockpiles. 
Nevertheless, the national anti-drugs strategy provided for in the 1998 Law has still not been fully implemented by the National Council on Drugs . Lebanon worked together with the Mini 
Dublin Group in April and November and part icipated actively in the regional Euro-Med 
Police II programme on drugs cooperation.  
In the fight against money laundering,  as in 2008  Lebanon continued developing a system 
against money laundering and th e financing of terrorism, ha ving incorporated Financial 
Action Task Force (FATF) recommendations  in line with the 2001 and 2003 Laws.  
In the area of police and judicial cooperation , Lebanon participated in the regional Euro-
Med programmes on justice and the police. Wo rk on setting up a Family Mediation and 
Arbitration Centre continued wi th a view to helping to reso lve international family law 
disputes. In 2009 it was proposed to admit Le banon as Member of the Hague Conference on 
Private International Law. 
6. T
RANSPORT , ENERGY , ENVIRONMENT , THE INFORMATION SOCIETY , RESEARCH AND 
DEVELOPMENT  
Plans for the implementation of a  transport  policy were held up because regulatory 
authorities in the land, aviation and maritime sectors were not established as foreseen. Nevertheless, in all transport sectors prepara tions for regulatory reform were intensive. 
The future establishment of a land transpor t authority will be crucial to the planned 
revitalisation of the road freight sector. Arra ngements for the freight sector reform include: 
the introduction of stricter technical rules, reorganisation of the profession of freight 
forwarder, incentives for fleet renewal, as well as the construction of logistic facilities. There 
are tentative plans in the Transport Ministry to  set up a road safety department, to launch a 
‘Road Fund’ and to launch a th ree–year, performance-based cont ract for the maintenance of 
 
EN 13   EN selected roads. The construction of the northern section of the railway is held up for lack of 
funds. 
In the aviation sector, Lebanon has still not es tablished a separate aviation regulator, although 
from the technical point of view the sector  is managed according to high international 
standards. After the signature of a horiz ontal agreement in 2004, in December 2009 the 
European Commission launched negotiations  on a comprehensive Euro-Mediterranean 
aviation agreement with Lebanon, aimed at regulatory alignment with EU standards and mutual market opening. Those negotiations s hould be concluded in the course of 2010. 
In the maritime sector, a draft law for the establishment of the Maritime Transport Authority 
was sent to the cabinet unde r the previous Government. Although Lebanon took steps to 
improve flag state implementation, the Lebanese flag is still on the black list of the Paris Memorandum of Understanding on Port State Contro l. The reinstatement of the Vessel Traffic 
and Monitoring System covering the Lebanese coas t and territorial waters is advancing with 
EU support. 
Lebanon still foots a high energy  import bill (nearly 10
 % of GDP in 2009) and subsidises 
electricity prices and Electricité du Liban  (EdL) at a high cost (4.6  % of GDP in 2009). In 
2009 there were regular power cuts, sometimes lasting up to 10-12 hours a day outside Beirut. 
There is a need for substantial investment in  existing and new infrastructure, including new 
electricity production to cope with rising ener gy demand. The new Government’s declaration 
includes an ambitious plan to address energy sector issues. Lebanon di d further work on the 
establishment of an electricity gene ration master plan. It developed an ad hoc  plan to build a 
new power plant urgently in 2010, but implem entation requires a political and financial 
decision.  In December 2009 the first Syrian gas arrived in the country under a swap-contract 
with Egypt and was used for power generation in  one 450 MW power plan t. It will make a 
significant contribution to reducing the country's  energy bill. The Government adopted an oil 
development plan. A draft law on off-shore oil and gas exploration is being prepared. Plans to 
build an Liquefied Natural Gas terminal re mained in the study phase. Lebanon started to 
import electricity from Egypt through Jordan  and Syria. This became possible when the 
Lebanon-Syria electricity interconnection was completed.  
Lebanon focused specifically on promoting the use of renewable energy sources and initiated 
the development of a strategy supporting the Mediterranean So lar Plan. It advanced the 
establishment of a wind atlas, initiated the in stallation of energy-effici ent street lighting and 
made a start on developing a solar heating project.  
In the field of climate change , Lebanon continued to prep are its Second National 
Communication to the UN Framework Conve ntion on Climate Change, including a 
greenhouse gas inventory and an assessment of clim ate impacts. As regards the administrative 
framework, the 2009 ministerial declaration an nounced that a national committee would be 
established to  follow up issues related to global warm ing and desertification. Implementing 
legislation on control of ozone depleting substances was adopted. 
Steps were taken to prepare Clean Development Mechanism pr ojects, although no projects 
have been registered at UN level so far. A Ministerial decision on the procedure for the 
review of CDM projects was adopted. Lebanon has not yet associated itself with the 
Copenhagen Accord and is therefore encouraged to do so as soon as possible and to provide 
information on the targets or act ions that it will implement.  
 
EN 14   EN As regards the environment,  the 2009 ministerial declaration announced plans to create green 
areas in cities and villages and reinforce natural reserves, replant trees, prevent forest fires and 
address the issue of open waste dumps.  The Ministry of the Environment prepared a work 
programme for 2010-2012. The legislative fram ework continues to require further 
development, in particular with regard to implementing legislation on environmental impact 
assessments, access to environmental informat ion and public participation. Implementing 
legislation on quarries was amended and impl ementing legislation on hunting was prepared.  
Continued attention is required to implement existing strategies and plans and to further 
enhance monitoring and enforcement. 
Restructuring of the Ministry of Environment started following the adoption of implementing 
legislation on its reorganisation and the mandate of its regional departments.  Further 
strengthening of administrative capacity is still a major  challenge at all levels of the country. 
Coordination between the aut horities involved also requires  attention. Reform of the water 
sector is on-going, but further measures are needed to for fully  integrated water resource 
management, including the related institut ional responsibilities.  The 2009 ministerial 
declaration announced plans to improve water a nd wastewater infrastructure and to address 
water resource management and quality. Some ac tivities took place to in tegrate environmental 
considerations into other po licy sectors such as energy.  
Lebanon organised some activities to inform a nd involve the public, but access to information 
needs to be improved. The adoption of a decree on environmental impact  assessments is 
pending and public consu ltation in the context of environm ental assessments is still not 
widely ensured. A strategic environmental asse ssment was carried out for a land-use master 
plan ( Schéma directeur d’aménagement du territoire ). 
The process of ratification of the Integrated Coastal Zone Management Protocol of the 
Convention for the Protection of the Marine Environment and the Coastal Region of the 
Mediterranean is ongoing. There were no significant developmen ts concerning the ratification 
of the other remaining Protocols2. Moreover, the implementa tion of already ratified 
agreements  requires particular attenti on. Lebanon continued to pa rticipate in the Horizon 
2020 Initiative, in the preparations  for a strategy for water in the Mediterranean (which failed 
to get approval at the recent ministerial meetin g of the Union for the Mediterranean), in the 
Mediterranean Action Plan  and in the EU Water Initiative, including a national policy 
dialogue. Cooperation and information excha nge took place betw een the European 
Commission and Lebanon, including on water,  pollution reduction in  the Mediterranean 
region and on environmental reporting.  
In the field of civil protection,  Lebanon took part in a new phase of activities of the Euro-
Mediterranean Programme for the Prevention, Preparedness and Response to Natural and 
Man-Made Disasters that st arted in 2009, continuing the pr ocess of strengthening civil 
protection activities in the regi on, enhancing capacity at regiona l, national and local levels, 
and promoting institutional cooperation. Here by, further steps were taken to bring  Lebanon 
closer to the European Civil Protection Mechanism, while at the same time contributing to the development of a civil protection culture in the region, based on an integrated approach 
                                                
 
2 Lebanon has not ratified the amendments to the Barcelona Convention’s Protocols on Land-Based 
Sources and Dumping. It has  not signed the new Emergency Protocol or the Specially Protected Areas 
and Biodiversity Protocol. 
 
EN 15   EN covering disaster prevention, prep aredness and response. The EU fi nanced a control centre to 
combat forest fires. 
In May 2009, the Ministry of Telecommunica tions published a policy paper setting out a 
vision for the Information Society  in Lebanon aimed at developing a people-centric 
information society, where everyone can creat e, access, utilise and share information and 
knowledge.  
In April 2009, the Government lowered telecomm unications tariffs in order to increase the 
number of subscribers for each operator, resulting in an increase of total revenues. The rollout 
of Broadband Internet services was slow in 2008, but subscriber numbers appear to have 
increased rapidly during the first half of 2009. The Telecomm unications Regulatory Authority 
- whose independence is being called into que stion - granted interim licenses for broadband 
data and Internet services to three Lebanese  companies, which can now install and operate 
networks of their own. This ra ises the number of privately lic ensed service providers with 
their own networks to 24. Although the Authority has postponed the entry into effect of the 
Spectrum Reforming Plan and the Licensing Regul ations, it has reiterated its commitment to 
safeguarding an open, transparent, and competitive market. 
In the audiovisual sector , the Conseil National de l’Audiovisuel  has a consultative role only 
and cannot impose rules that have not been enacted by the Ministry of Information. A 
Supervisory Commission on the Election Campaign (SCEC) was established with EU support in late 2008 and took so me positive initial steps towa rds controlling access to the 
media by political parties in the context of the 20 09 parliamentary elections.
  
The participation of Lebanon in the 7th Fram ework Programme (FP7) is limited and remains 
below its potential; there is still a need for better coordi nation among the national contact 
points in order to increa se the participation of Lebanese researchers and research  entities in 
the FP7. Lebanon’s participation in FP7 can be summarised as follows: 125 Lebanon 
applicants, ten of whom were listed for an  EU budget contribution to Lebanon of EUR 1.2 
million.  
7. PEOPLE -TO-PEOPLE CONTACTS , EDUCATION AND HEALTH  
As in 2008, Lebanon continued to implement the national programme on access to quality 
education  with priority given to low-income house holds and students with  special needs. As 
was the case in 2008, significant cha llenges remain with regard to governance of education, 
resource management and adequate measures to  tackle secondary school drop-out rates and 
the de-skilling of students. 
The situation regarding the draft laws on the re-organisation of the private higher education  
and on the University of Lebanon has not changed since 2008. Natio nal dialogue between 
educational partners continue d on the establishment of a homogenous educational system 
under the auspices of the Bologna Promoter s Group and with the support of the Higher 
Education Reform Experts (HERE) funded by the EU. In this respect, en suring the quality and 
comparability of courses and diplomas with re ference to ECTS (European Credit Transfer 
System) and the Bologna Process, as well as  national accreditation of higher education 
institutions, remain key area s of interest, as was the cas e in 2008. Concrete  legislative 
proposals in these areas are expected.  
 
EN 16   EN The public-private partnership project on vocational training  in the agro-food sector, which 
is funded by the EU, produced a partial labour- market study and a draft proposal for a legal 
framework to regulate the provisi on and delivery of vocational e ducation and training through 
public-private partnerships. In November 2009, a first training session for trainers on  
e-learning was organised, with Lebanon bene fiting from the experience, results and 
methodology developed under the earlier region al Meda ETE programme (see Sector Report 
2008). With the technical assistance of the Eur opean Training Foundation (ETF), the Ministry 
of Education and Higher Education initiated co operation with education and training NGOs 
with a view to developing entrepreneurship as a key feature of lifelong career guidance.  
Lebanon participated actively in the Tempus  IV programme, receiving funding for three 
projects under the second call for proposals for the academic year 2009-10. In addition, 
Lebanese students and academics benefited from grants from the Erasmus Mundus programme, including 26 mobility grants. Part icipation in Tempus enabled Lebanese 
universities and higher education institutions to  broaden long-standing cooperation with their 
European partners as well as to extend and diversify sources of academic expertise in support 
of reforms. The Ministry of Higher Education enhanced its ownership of the higher education 
modernisation agenda by defining priorities in line with future  national plans and strategies. 
Lebanese universities are encouraged to continue submitting high-level applications for 
projects under the Jean Monnet programme. 
On youth  cooperation, Lebanese young people and yout h organisations continued to benefit 
from the mobility oppo rtunities offered by the Youth in Action Programme, in the area of 
youth exchanges, voluntary service and coopera tion in the field of youth and non-formal 
education. The Ministry of Youth and Sport c ontinued work on a national policy and strategy 
for sports, youth and scouts. As  was pointed out in 2008, ther e needs to be more public 
support for youth leadership de velopment programmes, informal education, drug prevention 
and youth information activities.  
In the area of culture , Lebanon participated actively at regional level in the new Euro-Med 
Heritage IV programme. As Lebanon has not  ratified the 2005 UNESCO Convention on the 
Protection and Promotion of th e Diversity of Cultural Expres sions, Lebanese cultural 
organisations were not eligib le to participate in the Call for Proposals of the 2009 ENP 
Special Action under the Culture Programme. 
As was pointed out in 2008, while communication ch annels between the Ministry of Interior 
and Municipalities and NGOs did im prove, there are still some obsta cles to the registration of 
civil society  organisations ( see section 2) . A new law on NGOs is still in draft form. In 
implementing the 2007 law on consumer protecti on, in September the Ministry of Economy 
and Trade reactivated the Consumer Protection  Council, which includes private sector and 
consumer association representatives.  
Lebanon pursued health sector reform including as re gards primary health care, 
pharmaceuticals and financial sustainability. Le banon took measures to combat influenza A 
(H1N1) including the stepping up of surveillan ce. In 2009 the European Commission invited 
Lebanon to participate in the newly establishe d EU enlarged Health Information Committee. 
Lebanon pursued participation in the “Episout h” network on communicable diseases for the 
EU, Mediterranean and Balkan countries.  
 
EN 17   EN 8. FINANCIAL COOPERATION — 2009  KEY FACTS AND FIGURES  
The European Neighbourhood and Partnership In strument (ENPI) financial allocation for 
Lebanon under the National Indicative Programme 2007-2010 is EUR 187 million. The programme is geared towards supporting the achie vement of key policy objectives as outlined 
in the EU-Lebanon Action Plan and pursues several priorities. On the one hand, support focuses on the enhancement of political dialogue and cooperation on democracy and political life, an independent and impartial judiciary, the promotion of human rights protection and 
cross-cultural dialogue, as well as  the consolidation of freedom of media and expression. On 
the other hand, the priorities are improving public  finance management (sustainable fiscality 
and reduction of debt burden), improving business conditions to enhance growth and job 
creation, liberalising trade a nd promoting sustainable development policies and actions. 
Implementation of the measures covered by the 2007 and 2008 Annual Action Programmes is 
underway. There is support for the reform of the judiciary, environmen tal protection, energy, 
comprehensive social assistance systems (safet y nets), and trade facilitation and customs. 
Support for reconstruction and recovery takes the form of fostering local development, 
continuing demining and clearing of unexplode d ordnance as well as improving the living 
conditions of Palestine refugees.  
In 2009 the European Commission continued to  support the national reform efforts in 
Lebanon and programmed assistance for a to tal amount of EUR 43 million under the ENPI. 
The 2009 Annual Action programme focused on support to political, social and economic 
reforms as well as reconstructio n and recovery and further suppor t to the electoral reform. In 
addition, a twinning project on VAT Compliance and Risk Mana gement was selected in 2009 
and another project on st atistics is currently at the planni ng stage. Lebanon once again made 
effective use of TAIEX and almost 80 Lebanese  officials participated in TAIEX events. 
An indicative financial allocati on of EUR 150 million will be av ailable to support cooperation 
activities in Lebanon in the period 2011-2013, based on a Eur opean Commission decision of 
March 2010. 
In addition to the bilateral allocation, Lebanon also benefite d from cooperation activities 
financed under the ENPI multi-country and regional programmes, as well as horizontal thematic programmes such as the European Instrument for Democracy and Human Rights (EIDHR), Investing in People and Non-state Actors and Local  Authorities in Development 
(NSA/LA). Lebanon also participates in the Cross-Border Cooperati on (CBC) Mediterranean 
Sea Basin programme (EUR 173.6 million for th e whole programme in the period 2007-13). 
The priorities of the programme are: soci al-economic development, renewable energy, 
cultural dialogue and local development. 
Under the Neighbourhood Investment Facility (N IF), one technical assistance project in 
Lebanon was approved in 2009 amounting to EUR 4 million, which is expected to leverage 
EUR 111 million in loans from European Finan ce Institutions in the water and sanitation 
sector.  
In 2009 funds from the Instrument for Stability were used in Lebanon to support rubble 
removal at the Nahr el Bared refugee camp and provided rental s ubsidies to displaced 
refugees. Moreover, funding was provided to s upport the creation of the Special Tribunal for 
Lebanon. The Instrument for Stability was also  used to provide technical assistance and 
equipment for the organisation of the parliamentary elections. 
 
EN 18   EN The European Investment Bank signed lending operations in 2009 in Lebanon for an amount 
of EUR 70 million for the Kesrwan Water and Wa stewater project for the construction of a 
wastewater treatment plant and a sewerage netw ork and sea outfall in Tabarja near Jounieh. 
In 2009 the EU Delegation to Lebanon coordinated assistance activities, chairing regular 
thematic coordination meetings with Member  States. On the side  of the Lebanese 
Government, the Government Reform Programme  Coordination Office takes the lead. The 
EU Delegation, in permanent dialogue with the World Bank, leads th e international donors 
and UN Agencies.