Commission staff working document - Accompanying the Communication from the Commission to the European Parliament 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}
Date: 2010-05-04
Institutions: European Commission
Subjects: European neighbourhood policy, Lebanon, democracy, economic integration, energy policy, environmental protection, geographical mobility, human rights, legal system, political cooperation, report, settlement of disputes

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EUROPEAN COMMISSION  

Brussels, 12.5.2010 
SEC(2010) 522 final 

COMMISSION STAFF WORKING DOCUMENT 

Accompanying the 

COMMUNICATION FROM THE COMMISSION  
TO THE EUROPEAN PARLIAMENT 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} 

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1. 

BACKGROUND AND OVERALL ASSESSMENT 

Lebanon  and  the  European  Community  first  established  contractual  relations  in  1977  by 
signing  a  Cooperation  Agreement.  An  EU-  Lebanon  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  half  of  2009.  No  Association  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 December 2009, although developments outside this 
period  are  also  taken  into  consideration  where  relevant.  It  is  not  a  general  review  of  the 
political  and  economic  situation  in  Lebanon.  In  addition,  for  information  on  regional  and 
multilateral sector processes, please refer to the sectoral report. 

The  most  important  political  events  in  2009  were  the  June  parliamentary  elections  and  the 
appointment of a new national unity government headed by Prime Minister Saad Hariri. The 
elections  in  June  2009  –  held  on  the  basis  of  the  electoral  law  adopted  in  2008  –  were 
generally  peaceful  and  well  organised,  with  a  relatively  high  participation  rate  of  54 %. 
However,  the  negotiations  involved  in  the  forming  of  a  government  took  five  months  to 
complete, and a government declaration of policy was not adopted until 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 standstill in political, economic and social 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  remained  stable  throughout  the  reporting  period, 
although tensions with Israel reappeared at the end of the year. Further implementation of UN 
Security Council Resolutions (and 1701 in particular) was limited. The process of normalising 
relations  with  Syria  continued,  including  the  visit  of  PM  Hariri  to  Damascus  in  December 
2009. There are still no signs of more tangible results in the concrete bilateral dossiers already 
agreed in 2008 by the Presidents of both countries.  

The Government declaration adopted in December 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 translation of this policy statement into operational 
terms should make it a concrete agenda for change and lead to progress in the implementation 
of the EU Lebanon ENP Action Plan. 

In October 2009 the European Commission, through the EU Delegation in Beirut, organised a 
two-day conference on the implementation of the ENP. Five thematic round tables gave some 
700 participants - representatives of the Government, civil society, the private sector and the 

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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 effectively 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 revision of the electoral framework for the 2009 
parliamentary  elections  introduced  some  improvements  (see  last  year’s  report  SEC(2009) 
518). The Constitutional Council was re-established just 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 Mission (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 the National Commission on electoral law. 

These  included  the  introduction  of  a  certain  degree  of  proportionality,  pre-printed  ballot 
papers, creation of an independent election management body, strengthened 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 country’s international commitments. Outside of 
the  reporting  period,  the  Council  of  Ministers  adopted  a  number  of  proposals  on  which 
agreement was not found in time for implementation 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  perceived  to  lack  credibility  and  transparency.  Prisons 
remain  overcrowded,  detention  conditions  are  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 address public and private sectors in line with commitments under 
the  Convention  is  pending.  Lebanon  has  lost  ground  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 Interior. 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  Ministry  of  Interior  and  Municipalities  to  the 

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Ministry  of  Justice,  which  started  in  2008,  is  continuing  and  should  be  completed  by  2013. 
Both Ministers have affirmed that it will 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  and  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 Degrading Treatment or Punishment (OPCAT) in 2008, 
the establishment of a National Preventive Mechanism (NPM) for the monitoring of detention 
centres and prisons (required within one year of ratification) 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  other  Ministries.  No  deadline  has  been  set  for  presenting  the  draft 
law to the Council of Ministers. 

The ratification of a number of international human rights conventions 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 all thematic special procedures. 

An  organisational  decree  had  already  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 Justice drafted a decree for 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 continued 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  Security  Forces,  which  was 
created during the previous reporting period and has no equivalent in any other security organ, 
lacks proper budget and staffing, limiting 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 media 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  intimidation  of  journalists  were  reported.  The 
importance  of  independent  and  critical  media  could  be  observed  during  the  2009  electoral 
campaign.  Detailed  media  monitoring  by  the  Supervisory  Commission  on  the  Electoral 
Campaign  and  the  EU  Election  Observation  Mission  showed  that  media  coverage  of  the 
campaign tended to be partial and shaped around political lines. There is a need to implement 
effective  mechanisms  to  ensure  compliance  with,  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 

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been reported in the past, this situation improved with the introduction at the end of 2008 of 
new,  simplified  procedures  for  registering  associations.  No  denials  were  reported  in  2009. 
Palestinian NGOs must include Lebanese 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  Contract  for  Migrant  Domestic  Workers  was 
prepared  in  February  2009.  However,  enforcement  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  refugees  progress  remains  insufficient.  The  overall 
situation of Palestine refugees in Lebanon1 (around 425,000 are registered with UNRWA, of 
whom  an  estimated  330,000  are  resident)  remained  unchanged  throughout  the  reporting 
period. Palestine refugees’ right to work and register property 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 economic and social rights of Palestine refugees 
as well as living conditions in the refugee camps.  

Since Lebanon has neither ratified the 1951 Geneva Convention nor implemented a domestic 
refugee  law,  refugees  and  asylum  seekers  (mostly  Iraqis  but  also  Sudanese)  do  not  receive 
appropriate protection, despite being recognised  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 illegal immigrants and a small number have been 
subject  to  arrest,  fines  and  indefinite  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. Conditions in the temporary detention centre remain 
extremely poor. 

No  progress  was  made  on  lifting  Lebanon’s  reservations  regarding  the  Convention  on  the 
Elimination of all Forms of Discrimination against Women (CEDAW).  

During the reporting period Lebanon worked on draft 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  were  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. 

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In  April  2009  Lebanon  completed  a  comparative  analysis  of  the  gaps  between  national 
legislation  and  international  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 International Labour Organisation Convention 87 on 
Freedom of Association and Protection 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 partners 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 the establishment of the Special Tribunal for Lebanon.  

The mandate of the UN Independent International Investigation Commission (UNIIIC) came 
to an end in February 2009 and the Special Tribunal for Lebanon began its work in March. In 
June  2009,  the  Office  of  the  Prosecutor  of  the  Special  Tribunal  and  the  Government  of 
Lebanon  entered  into  a  Memorandum  of  Understanding  on  the  modalities  of  their 
cooperation.  The  European  Commission  provided  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 politicians made official visits to Damascus. 
No  particular  progress  was  achieved  on  other  pending  issues,  such  as  the  renegotiation  of 
bilateral  agreements  and  a  genuine  dialogue  on  the  fate  of  people  who  have  disappeared  in 
Lebanon. The Government's policy declaration refers to the possibility of forming a National 
Committee to deal with the issue of victims of enforced disappearance. The reactivation of the 
Joint  Committee  on  Border  Delimitation  and  stronger  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 the auspices of the President 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  Prohibition  of  the  Use,  Stockpiling,  Production 
and Transfer of Anti-Personnel Mines and on their Destruction. In addition, the ratification of 
the  Convention  on  Cluster  Munitions  is  pending  (although  Lebanon  was  one  of  the  first  to 
sign  the  Treaty  in  December  2008).  The  EU  continued  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, largely a result of regional portfolio shifts in 

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the  aftermath  of  the  global  crisis,  was  the  main  driver  of  the  strong  growth.  Heightened 
interest rate spreads on international markets, EMBI and Eurobond spreads for instance, led to 
an increase in foreign deposits in Lebanese banks. The banks also benefited from their image 
as  a  relatively  safe  destination  for  investment.  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  expatriates,  as  well  as  the  spending  related  to  the 
electoral campaign, boosted domestic expenditure. However, the high interest rate differential 
was also instrumental in maintaining at high levels the cost of financing the public debt. Debt 
service absorbed 48 % of total state revenues in 2009.  

This  inflow  of  foreign  deposits  helped  to  alleviate  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 impact on consumption and investment. As 
domestic banks form the largest creditor group to the Government and hold more than 55 % of 
total public debt, the increase in deposits helped to absorb high-yielding government bonds. 
However, weak lending opportunities for banks and excessive remunerated liquidities with a 
negative  impact  on  their  profitability  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 context, gross debt stood at 156 % of GDP at 
the end of 2009, excluding payment arrears, only a slight 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 pensions in the public 
sector,  reconstruction  and  compensation  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 million 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 period for the disbursement of the second grant 
and  loan  tranches  by  one  year  until  December  2010.  Actual  disbursements  will  depend  on 
Lebanon meeting the requirements. 

The international economic crisis had a consistent impact on industry and agriculture as trade 
volumes started to decelerate at the beginning of 2009. This decrease mirrored the slowdown 
in the major trading partners, namely the Gulf Cooperation Council (GCC) 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  agricultural  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 imports of oil derivatives. However, the international crisis 
made a positive contribution to reducing inflation. 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 there 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,  which  might  have  negative 
consequences on capital inflows in the country. The heavy debt burden and high reliance on 

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external  capital  inflows  render  the  Lebanese  economy  and  banking  sector  sensitive  to 
conditions  in  global  financial  markets.  The  fiscal  situation  remains  particularly  vulnerable, 
given the high level of public debt. Moreover, a slowdown in deposit growth with commercial 
banks  could  tighten  financing  conditions  for  the  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 its country-wide roll-out is currently underway. The Ministry 
also published during the reporting 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 strategy 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  Labour  Organisation  (ILO) 
and  the  European  Union.  A  decree  for  the  regulation  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  reported  in  the  fields  of  pension  reforms  and  reform  of  the  social 
security  system,  although  following  the  formation  of  the  Government  the  new  Minister  of 
Labour began examining how to reform the National 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  period  under  review.  The  capacity  of  the  labour 
inspectorate was nonetheless increased, doubling 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 low. 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  municipal  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 great majority are working in the informal 
sector.  In  addition,  women  still  suffer  from  a  gender  pay  gap  of  approximately  27 %  and 
unmarried women workers reportedly face discrimination 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 Lebanese 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 Development (the so-called ‘environment module’). 

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As  regards  the  preparation  of  a  comprehensive  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 Ministers 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  the  Ministry,  and  a  quality  and 
credit  scheme  for  agriculture.  The  framework  and  its  implementation  programme  also  cater 
for the reinforcement of controls on agricultural 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  billion  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 originating in the EU and 
transiting  through  Beirut  port  free  zone  before  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 Trade 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  launched.  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 discussed by Parliament, or require revision, including 
the  law  on  international  trade  and  licensing.  Lebanon  confirmed  its  intention  to  make 
headway  in  the  bilateral  negotiations  on  services  with  the  EU  in  the  context  of  the  WTO 
accession.  Lebanon  reiterated  its  commitment  to  participating  in  regional  and  sub-regional 
trade initiatives, including concluding an FTA with Turkey. 

The computerisation of the Customs administration is progressing, 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  with  the  IAEA  on  the  control  of  radioactive 
material crossing the border between Lebanon 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 Ministers’ and/or parliamentary approval. These include 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. Amendments to the accreditation law 
and  to  the  law  on  metrology  are  also  pending.  Nomination  of  directors  to  the  quality 
infrastructure  bodies  is  underway.  The  Government  has  established  an  Excellence  Award 
based on the EU quality assessment model. At enterprise 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  consumer  protection,  training  of 
inspectors in municipalities took place in the context of an EU-funded programme. 

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Regarding  sanitary  and  phyto-sanitary  (SPS)  issues,  the  draft  food  safety  law,  which 
includes the establishment of a food 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  Directorate,  laboratories  and  regional 
control centres.  

Several  proposals  to  improve  the  business  climate  are  waiting  for  approval,  including  the 
establishment  in  post  offices  of  one-stop  shops  for  setting  up  a  business  and  making  the 
company  register  available  on-line.  Lebanon  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  registration  is  still  waiting  for  parliamentary 
approval.  Lebanon  is  also  working  on  further  streamlining  company  registration.  Lebanon 
continued with its preparations to adopt international audit and accounting standards. 

Lebanon  took  part  in  the  regional  phase  of  negotiations  on  the  framework  protocol  for  the 
liberalisation of services and the right of establishment, as indicated in the two earlier reports, 
but bilateral negotiations have not yet been launched. Lebanon is preparing 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  weaknesses  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 principles for effective banking supervision. 

Other key areas 

As reported last year, the Tax Procedure Code entered into force 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  the  Council  of  Ministers  for  amendment. 
Competition  study  visits  to  Europe  were  organised  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  international  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,  during  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 deposited trademarks and patents with a view to 
fighting piracy. A new consumer protection law, which includes a number of provisions on 
trademarks, was drafted during 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 reform of procurement legislation as well as the 
establishment of a state procurement agency should be considered as priorities. 

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The National Master Plan for Statistics, which was presented to the Council of Ministers in 
2008, has not yet been adopted. It raises 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  implementation  and  funding  are  still  to  be  defined  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 President was appointed to the Audit 
Court, but lack of qualified staff and internal resources undermines the institution’s capacity 
to exercise its functions and fulfil its reform agenda.  

In the area of public finance reform and internal financial control, in April 2009 Lebanon 
ratified the United Nations Convention against 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 Unit within the Ministry of Finance 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  monitoring  progress  in  the  business  environment  and 
business support services. It provides services including information, counselling, training and 
promotion. The Government gives loans to specific sectors (e.g. agriculture and hospitality). 
The Bank of Lebanon also gives concessional loans for investments. Several business support 
initiatives  were  implemented  in  2009  in  various  regions  of  Lebanon.  Lebanon  also 
participates  in  a  pilot  project  on  entrepreneurial  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 infrastructure work has 
already started with a view to improving the 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.  Operational  meetings  with  Syria  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  intelligence  involving  all  relevant  agencies 
along with coordinated provision of training would help to capitalise on these recent positive 
developments. Improving the management of Lebanese borders is among the priorities of the 
new  Government.  The  appointment  of  a  national  border  coordinator  in  March  2010  should 
accelerate the work.  

In the area of migration and asylum, no major progress can be reported. The country hosts a 
large  quantity  of  labour  migrants,  including  many  domestic  workers  of  Asian  origin,  and 
many  migrants  in  need  of  international  protection,  particularly  from  Iraq.  Both  categories 
continue not to be offered sufficient protection and the country’s legislation 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 

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on the compliance of national legislation with relevant UN instruments 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 urgently needed to tackle this phenomenon effectively 
and  raise  public  awareness  of  its  dimensions  (see  Chapter  2).  Specific  measures  need  to  be 
defined  to  combat  child  pornography  on  the  internet,  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  cooperation  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 hashish crops were eradicated in August and 
September  2009.  Eradication  efforts  were  combined  with  counter-narcotics  campaigns  to 
discourage  the  reappearance  of  hashish  cultures.  However,  poverty,  isolation  and  alienation 
from  state  structures  act  as  significant  obstacles  to  these  eradication  efforts.  Drug  demand 
remained  steady  but  with  a  significant  increase  in  the  use  of  amphetamines  and  other 
synthetic drugs. Drug trafficking started 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,  resulting  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  participated  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  the  financing  of  terrorism,  having  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.  Work  on  setting  up  a  Family  Mediation  and 
Arbitration  Centre  continued  with  a  view  to  helping  to  resolve  international  family  law 
disputes. In 2009 it was proposed to admit Lebanon as Member of the Hague Conference on 
Private International Law. 

6. 

TRANSPORT, 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 preparations for regulatory reform were intensive. 

The  future  establishment  of  a  land  transport  authority  will  be  crucial  to  the  planned 
revitalisation  of  the  road  freight  sector.  Arrangements  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 three–year, performance-based contract for the maintenance of 

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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 established 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  horizontal  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 should 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  under  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 Control. The reinstatement of the Vessel Traffic 
and Monitoring System covering the Lebanese coast 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 energy demand. The new Government’s declaration 
includes an ambitious plan to address energy sector issues. Lebanon did further work on the 
establishment of an electricity generation master plan. It developed an ad hoc plan to build a 
new  power  plant  urgently  in  2010,  but  implementation  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 plant. 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  remained  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  Solar  Plan.  It  advanced  the 
establishment of a wind atlas, initiated the installation of energy-efficient street lighting and 
made a start on developing a solar heating project.  

In  the  field  of  climate  change,  Lebanon  continued  to  prepare  its  Second  National 
Communication  to  the  UN  Framework  Convention  on  Climate  Change,  including  a 
greenhouse gas inventory and an assessment of climate impacts. As regards the administrative 
framework,  the  2009  ministerial  declaration  announced  that  a  national  committee  would  be 
established  to  follow  up  issues  related  to  global  warming  and  desertification.  Implementing 
legislation on control of ozone depleting substances was adopted. 

Steps  were  taken  to  prepare  Clean  Development  Mechanism  projects,  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 actions that it will implement.  

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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  framework  continues  to  require  further 
development, in particular with regard to implementing legislation on environmental impact 
assessments,  access  to  environmental  information  and  public  participation.  Implementing 
legislation on quarries was amended and implementing 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  authorities  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  institutional  responsibilities.  The  2009  ministerial 
declaration  announced  plans  to  improve  water  and  wastewater  infrastructure  and  to  address 
water resource management and quality. Some activities took place to integrate environmental 
considerations into other policy sectors such as energy. 

Lebanon organised some activities to inform and involve the public, but access to information 
needs  to  be  improved.  The  adoption  of  a  decree  on  environmental  impact  assessments  is 
pending  and  public  consultation  in  the  context  of  environmental  assessments  is  still  not 
widely ensured. A strategic environmental assessment 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 developments concerning the ratification 
of  the  other  remaining  Protocols2.  Moreover,  the  implementation  of  already  ratified 
agreements  requires  particular  attention.  Lebanon  continued  to  participate  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 meeting 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  exchange  took  place  between  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  started  in  2009,  continuing  the  process  of  strengthening  civil 
protection  activities  in  the  region,  enhancing  capacity  at  regional,  national  and  local  levels, 
and  promoting  institutional  cooperation.  Hereby,  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. 

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covering disaster prevention, preparedness and response. The EU financed a control centre to 
combat forest fires. 

In  May  2009,  the  Ministry  of  Telecommunications  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  create,  access,  utilise  and  share  information  and 
knowledge.  

In  April  2009,  the  Government  lowered  telecommunications  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 Telecommunications Regulatory Authority 
- whose independence is being called into question - granted interim licenses for broadband 
data  and  Internet  services  to  three  Lebanese  companies,  which  can  now  install  and  operate 
networks  of  their  own.  This  raises  the  number  of  privately  licensed  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 Regulations, 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  some  positive  initial  steps  towards  controlling  access  to  the 
media by political parties in the context of the 2009 parliamentary elections.  

The participation of Lebanon in the 7th Framework Programme (FP7) is limited and remains 
below  its  potential;  there  is  still  a  need  for  better  coordination  among  the  national  contact 
points in order to increase 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 households and students with special needs. As 
was the case in 2008, significant challenges 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.  National  dialogue  between 
educational  partners  continued  on  the  establishment  of  a  homogenous  educational  system 
under  the  auspices  of  the  Bologna  Promoters  Group  and  with  the  support  of  the  Higher 
Education Reform Experts (HERE) funded by the EU. In this respect, ensuring the quality and 
comparability  of  courses  and  diplomas  with  reference  to  ECTS  (European  Credit  Transfer 
System)  and  the  Bologna  Process,  as  well  as  national  accreditation  of  higher  education 
institutions,  remain  key  areas  of  interest,  as  was  the  case  in  2008.  Concrete  legislative 
proposals in these areas are expected.  

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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 provision and delivery of vocational education and training through 
public-private  partnerships.  In  November  2009,  a  first  training  session  for  trainers  on  
e-learning  was  organised,  with  Lebanon  benefiting  from  the  experience,  results  and 
methodology developed under the earlier regional Meda ETE programme (see Sector Report 
2008). With the technical assistance of the European Training Foundation (ETF), the Ministry 
of Education and Higher Education initiated cooperation 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.  Participation  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 youth organisations continued to benefit 
from  the  mobility  opportunities  offered  by  the  Youth  in  Action  Programme,  in  the  area  of 
youth  exchanges,  voluntary  service  and  cooperation  in  the  field  of  youth  and  non-formal 
education. The Ministry of Youth and Sport continued work on a national policy and strategy 
for  sports,  youth  and  scouts.  As  was  pointed  out  in  2008,  there  needs  to  be  more  public 
support for youth leadership development  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  the  Diversity  of  Cultural  Expressions,  Lebanese  cultural 
organisations  were  not  eligible  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 channels between the Ministry of Interior 
and Municipalities and NGOs did improve, there are still some obstacles 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 protection, 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  regards  primary  health  care, 
pharmaceuticals  and  financial  sustainability.  Lebanon  took  measures  to  combat  influenza  A 
(H1N1) including the stepping up of surveillance. In 2009 the European Commission invited 
Lebanon to participate in the newly established EU enlarged Health Information Committee. 
Lebanon pursued participation in the “Episouth” network on communicable diseases for the 
EU, Mediterranean and Balkan countries. 

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8. 

FINANCIAL COOPERATION — 2009 KEY FACTS AND FIGURES 

The  European  Neighbourhood  and  Partnership  Instrument  (ENPI)  financial  allocation  for 
Lebanon  under  the  National  Indicative  Programme  2007-2010  is  EUR 187 million.  The 
programme is geared towards supporting the achievement 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 and 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, environmental protection, energy, 
comprehensive  social  assistance  systems  (safety  nets),  and  trade  facilitation  and  customs. 
Support  for  reconstruction  and  recovery  takes  the  form  of  fostering  local  development, 
continuing  demining  and  clearing  of  unexploded  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 total 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 reconstruction and recovery and further support to the electoral reform. In 
addition, a twinning project on VAT Compliance and Risk Management was selected in 2009 
and another project on statistics is currently at the planning stage. Lebanon once again made 
effective use of TAIEX and almost 80 Lebanese officials participated in TAIEX events. 

An indicative financial allocation of EUR 150 million will be available to support cooperation 
activities in Lebanon in the period 2011-2013, based on a European Commission decision of 
March 2010. 

In  addition  to  the  bilateral  allocation,  Lebanon  also  benefited  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 Cooperation (CBC) Mediterranean 
Sea Basin programme (EUR 173.6 million for the whole programme in the period 2007-13). 
The  priorities  of  the  programme  are:  social-economic  development,  renewable  energy, 
cultural dialogue and local development. 

Under  the  Neighbourhood  Investment  Facility  (NIF),  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  Finance  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  subsidies  to  displaced 
refugees. Moreover, funding was provided to support 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. 

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The European Investment Bank signed lending operations in 2009 in Lebanon for an amount 
of EUR 70 million for the Kesrwan Water and Wastewater project for the construction of a 
wastewater treatment plant and a sewerage network 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  the  international  donors 
and UN Agencies. 

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