JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Lebanon Progress in 2012 and recommendations for action Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS European Neighbourhood Policy: Working towards a Stronger Partnership
Date: 2013-03-20
Institutions: European Commission, High Representative of the Union
Subjects: European neighbourhood policy, Jordan, Lebanon, democratisation, economic integration, economic reform, educational reform, institutional reform, political cooperation, political reform, sustainable development, trade cooperation

EUROPEAN 
COMMISSION 

HIGH REPRESENTATIVE OF THE
EUROPEAN UNION FOR
FOREIGN AFFAIRS AND
SECURITY POLICY

Brussels, 20.3.2013  
SWD(2013) 93 final 

JOINT STAFF WORKING DOCUMENT 

Implementation of the European Neighbourhood Policy in Lebanon 
Progress in 2012 and recommendations for action 

Accompanying the document 

JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

European Neighbourhood Policy: Working towards a Stronger Partnership 

{JOIN(2013) 4 final} 
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{SWD(2013) 80 final} 
{SWD(2013) 81 final} 
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{SWD(2013) 83 final} 
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{SWD(2013) 85 final} 
{SWD(2013) 86 final} 
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{SWD(2013) 88 final} 
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{SWD(2013) 90 final} 
{SWD(2013) 91 final} 
{SWD(2013) 92 final} 

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1. 

OVERALL ASSESSMENT AND RECOMMENDATIONS FOR ACTION  

This  document  reports  on  overall  progress  made  on  the  implementation  of  the  EU-
Lebanon European Neighbourhood Policy (ENP) Action Plan between 1 January and 31 
December  2012,  although  developments  outside  this  period  are  also  considered  where 
relevant. It is not a general review of the political and economic situation in Lebanon. 

The  EU-Lebanon  ENP  Action  Plan  was  adopted  in  January  2007  for  a  period  of  five 
years.  In  2012  Lebanon  and  the  EU  jointly  drafted  a  new  ENP  Action  Plan.  The 
negotiations  were  concluded  in  October  2012  and  the  Action  Plan  will  enter  into  force 
after legal procedures are completed in early 2013. There was an unprecedented level of 
cooperation  between  the  EU  and  Lebanon  in  the  context  of  the  ENP  in  2012.  An 
Association Council and eight technical subcommittee meetings were held and there were 
high  level  visits  of  Prime  Minister  Najib  Mikati  to  Brussels  in  April  and  High 
Representative  Foreign  Affairs  and  Security  Policy  /Vice  President  (HR/VP)  Catherine 
Ashton to Lebanon in October. 

Implementing Lebanon’s reform objectives went slowly, against the backdrop of the on-
going  crisis  in  neighbouring  Syria.  Throughout  2012  Lebanon  successfully  pursued  its 
policy focused on preserving stability and national unity. It officially disassociated itself 
from  the  events  in  Syria,  a  move  acknowledged  by  all  political  leaders  in  the  Baabda 
Declaration  made  in  the  context  of  the  National  Dialogue  in  June.  Lebanon’s  internal 
stability  came  under  threat  when  there  were  a  number  of  violent  clashes  related  to  the 
Syrian  conflict,  in  particular  in  the  northern  city  of  Tripoli.  The  security  situation 
remained  fragile  and  the  situation  deteriorated  in  October  when  General  Wissam  Al-
Hassan, Head of the Internal Security Forces Information Branch, was assassinated. This 
grave incident exacerbated political divisions and stalled political life for the rest of the 
year  as  the  opposition  decided  to  boycott  the  national  political  institutions  and  the 
National Dialogue sessions.  

Lebanon hosted and assisted an increasing number of Syrian refugees. The total number 
reached 180,000 by the end of the year. In December, with humanitarian needs growing, 
the Government prepared a comprehensive response plan. 

In  these  circumstances,  the  implementation  of  most  of  the  ENP  agenda  stalled.  There 
were  some  positive  steps  in  the  justice  sector,  notably  the  carrying  out  of  long-
outstanding  judicial  appointments.  The  human  rights  action  plan  was  announced  after 
extensive  delays  and  there  was  a  degree  of  progress  in  improving  the  services  of  the 
security  agencies  and  armed  forces.  However,  Lebanon  did  not  succeed  in  revising  its 
electoral  framework  ahead  of  the  legislative  elections  to  be  held  in  June  2013.  Further 
progress  is  needed  to  tackle  a  number  of  governance  issues,  including  the  rule  of  law, 
decentralisation,  administrative  reform  and  corruption.  Shortcomings 
in  border 
management became more evident with the developing crisis in Syria. 

Human  rights  and  fundamental  freedoms  are  generally  well  respected  in  Lebanon. 
Freedom of association and religion prevails. The media environment is relatively liberal 

2 

 
 
and freedom of expression is respected although there have been some isolated incidents 
of  censorship  and  intimidation.  The  independence  and  efficiency  of  the  justice  sector 
need to be further improved. The right to a fair trial is compromised in those cases where 
civilians are tried by military tribunals. Some death sentences were handed down in 2012. 
Lebanon generally honoured its commitments towards the Special Tribunal for Lebanon 
in  2012.  Serious  deficiencies  in  prison  management  persist  and  the  number  of  pre-trial 
detainees  remains  high.  Palestinian  refugees  still  face  major  difficulties  and  the 
legislative  framework  to  protect  refugees,  migrants  and  asylum  seekers  has  not  been 
addressed. No further measures were taken to enhance the role of women in public and 
economic life. 

The  Lebanese  economy  continues  to  be  seriously  affected  by  the  conflict  in  Syria,  in 
particular  through  disruptions  to  trade  in  services,  such  as  tourism,  and  agricultural 
goods.  The  fiscal  situation  remains  vulnerable  with  one  of  the  highest  public  debt-to-
GDP  ratios  in  the  world  and  a  high  central  government  deficit.  The  political  stalemate 
had  a  negative  impact  on  the  adoption  of  the  official  budget  and  budgetary  reform. 
However,  Lebanon  has  managed  to  maintain  monetary  stability  through  its  large  and 
robust  banking  sector  and  significant  foreign  exchange  reserves.  The  Central  Bank 
imposed  certain  restrictions  on  banking  deposits  with  the  aim  of  limiting  money 
laundering. 

Lebanon  has  not  yet  made  progress  in  its  bid  to  join  the  World  Trade  Organisation 
(WTO). In July the Council of Ministers approved the National ACAA1 Action Plan and 
elaborated  a  phyto-sanitary  strategy  for  2012-2016.  Lebanon  has  not  yet  signed  the 
regional Convention on pan-Euro-Mediterranean preferential rules of origin. 

There were further delays to much-needed structural reforms in the energy, transport and 
telecoms sectors. Lebanon took some short-term measures to enhance power supply, but 
the energy sector has not yet been restructured for the longer term. Transfers to the State-
run  electricity  company  continue  to  impose  a  heavy  burden  on  fiscal  spending.  The 
establishment  of  the  Petroleum  Authority  and  appointment  of  its  members  was  an 
important  milestone  in  the  exploration  of  hydro-carbon  resources  in  the  Mediterranean 
Sea.  Lebanon  improved  its  legislative  and  administrative  framework  for  environmental 
protection. No progress was made towards liberalising the telecommunications sector and 
telecommunications services remain substandard and expensive. 

Short-term  ad-hoc  steps  were  taken  in  the  social  field,  when  Lebanon  increased  the 
minimum  wage  for  private  sector  workers  at  the  beginning  of  2012  but  dialogue  with 
public  sector  workers  was  limited  and  marred  by  several  protests.  A  substantial  salary 
increase for civil servants was accepted but it remained unclear how it would be funded. 
There was no tangible progress in either education or healthcare. 

In 2012 Lebanon addressed only a few of the key recommendations contained in the last 
year's ENP progress report by making some overdue judicial appointments. Most of the 
key recommendations remain valid. On the basis of the assessment of the progress made 

1 Agreement on Conformity Assessment and Acceptance of Industrial Products. 

3 

 
 
                                                 
in implementing the ENP in 2012, and taking into account the priorities agreed jointly by 
the EU and Lebanon in the new ENP Action Plan, Lebanon should focus its efforts in the 
coming year on: 

•  Ensuring  that  the  elections  in  2013  are  conducted  in  a  democratic  way,  and  that 
compliance of the electoral framework with international standards is improved. 

•  Enhancing the role of institutions that can contribute to the stability of the country, in 

particular the Parliament. 

•  Working  on  improving  the  security  situation,  law  enforcement  and  border 

management. 

• 

• 

Improving  the  effectiveness  and  independence  of  the  judiciary,  including  through 
increased computerisation of the courts and independence of judicial appointments; 

Improving  the  protection  of  refugees,  migrants  and  asylum  seekers,  including 
through the signature of the revised Memorandum of Understanding with the United 
Nations High Commissioner for Refugees (UNHCR). Providing continued protection 
and support to people fleeing the violence in Syria. 

•  Adopting  concrete  steps  to  improve  Palestinian  refugees’  living  conditions  and 

access to property, employment and social security. 

•  Taking measures to enhance the role of women in public and economic life; 

•  Adopting the budget on time and improving management of public finances. 

•  Taking measures to combat corruption, including the adoption of public procurement 

legislation. 

•  Making progress toward membership of the WTO. 

•  Continuing  the  efforts  made  in  preparation  for  ACAA  negotiations  and  complying 

with sanitary and phyto-sanitary rules. 

•  Signing  and  ratifying 

the  regional  Convention  on  pan-Euro-Mediterranean 

preferential rules of origin. 

•  Starting to implement a long-term restructuring of the energy sector and setting up a 
transparent  framework  for  effective  and  sustainable  management  of  the  natural 
resources in the Mediterranean Sea. 

4 

 
 
 
 
2. 

POLITICAL DIALOGUE AND REFORM  

Towards deep and sustainable democracy  

A  revised  version  of  the  draft  electoral  law  approved  by  the  Council  of  Ministers  (the 
Cabinet)  in  August  2012  remained  under  the  scrutiny  of  a  parliamentary  committee 
before being voted on by Parliament. Due to its late approval, there is a risk that this law 
will not be actually implemented by the time of the parliamentary elections expected in 
June  2013.  The  date  of  the  poll  has  not  yet  been  set.  The  draft  law  aligns  better  with 
international  standards  and  the  recommendations  of  previous  EU  election  observation 
missions.  It  provides  for  pre-printed  ballots,  stronger  campaign  regulations  and  some 
form  of  proportional  representation.  No  independent  electoral  commission  has  been 
established,  the  representation  of  women  cannot  be  guaranteed  (given  the  requirement 
only to have at least one representative of each gender on each list), and the constitution 
has not been amended to lower the voting age from 21 years to 18. Public debate on the 
draft  electoral  law  has  been  focused  on  proportional  representation.  A  lack  of  political 
consensus  on  this  issue  delayed  progress  on  other  aspects  of  the  electoral  framework. 
Civil society was involved only to a limited extent. Generally the work of Parliament is 
limited with only a few legislative sessions per year. 

The media in Lebanon is relatively free to comment on all issues. Articles in the penal 
code prohibit blasphemy and insults against religion. The General Security (GS) censor 
films  and  literature  in  this  regard.  In  April  controversial  draft  legislation  to  regulate 
online  media  organisations  was  withdrawn  for  review  after  heavy  criticism  from  civil 
society  groups.  Isolated  cases  if  of  limitations  on  people’s  freedom  of  expression 
occurred  during  the  reporting  period.  These  included  occasional  cases  whereby 
journalists, comedy actors and graffiti artists were intimidated, beaten and arrested. There 
were  also  restrictions  on  filming  and  raids  on  media  institutions.  The  authorities’  poor 
record in prosecuting such violations is a matter of concern. 

The  independence  of  the  judiciary  needs  to  be  further  improved.  In  May  a  draft  law 
seeking to strengthen its independence, ‘on a gradual basis’ was submitted to the Cabinet. 
The  draft  legislation  increases  membership  of  the  Higher  Judicial  Council  and  gives  it 
authority over judicial appointments. Nevertheless the Minister of Justice continues to be 
involved in the appointment of members of the Council. In October the Cabinet approved 
long-awaited  appointments  of  the  Head  of  the  Higher  Judicial  Council  and  the  State 
Prosecutor. 

The outstanding issue concerning fair trials is the continued use of military courts to try 
civilian  cases.  In  the  reporting  period  several  high-profile  civilian  cases  were  tried  in 
military courts. Military courts issued sentences including the death penalty for persons 
found guilty of espionage. 

Lebanon  continues  to  face  challenges  in  fighting  impunity.  As  a  positive  step,  the 
Lebanese authorities honoured their international commitments with regard to the Special 
Tribunal  for  Lebanon  (STL)  and  its  financing.  Moreover,  the  mandate  of  the  Tribunal 
was  extended  for  an  additional  three  years  in  January.  However  there  was  no  progress 

5 

 
 
made  on  apprehending  the  four  persons  indicted  by  the  STL.  Similarly,  there  was  no 
progress with regard to the missing and forcibly disappeared persons. In February, civil 
society groups proposed  a draft  law focusing on the ‘right to truth’, however it has not 
been  formally  endorsed.  The  assassination  of  General  Wissam  El-Hassan,  Head  of  the 
Internal  Security  Forces  (ISF)  Information  Branch,  in  October  adds  to  the  challenge  of 
fighting impunity in Lebanon. 

Only small developments were noted in the fight against corruption. A number of laws 
linked to combating corruption were prepared in November. Transparency International 
currently ranks Lebanon as 128th of 174 countries on its corruption perception index.  

There  was  some  progress  in  the  first  part  of  the  year  in  the  security  and  law 
enforcement  sector.  The  ISF  adopted  a  new  Code  of  Conduct  and  the  GS  renewed  its 
commitment to improve its services to citizens. The tense security situation in the country 
has  made  it  very  difficult  to  look  into  more  structural  issues.  The  EU  is  supporting 
improvements to the organisational capacity and the professionalism of the ISF through 
an  ongoing  project.  Consultations  are  ongoing  on  possible  assistance  to  the  GS  and  its 
recently developed strategic plan. A lot of work still needs to be done to achieve closer 
inter-agency  cooperation,  clarify  the  mandates  of  the  various  security  agencies  in 
Lebanon, reduce overlaps and duplications, and be more pro-active in respecting human 
rights. 

As for the democratic control over the armed forces, the re-launching of the National 
Dialogue  in  June  and  the  discussion  on  the  proposal  for  a  National  Defence  Strategy 
presented by President Sleiman in September is a significant development. The proposal 
seeks  to  reinforce  the  Lebanese  Armed  Forces  (LAF).  Hezbollah’s  arms  are  to  be  used 
upon  the  request  of  LAF,  ‘via  a  decision  from  the  political  authority’.  Following  these 
initial  discussions  the  Cabinet  approved  a  EUR  1.2  billion  plan  to  increase  the  LAF’s 
capacity over the next five years and to strengthen the LAF’s role as the neutral guarantor 
of  national  security.  It  is  unclear  how  the  plan  will  be  financed,  as  it  relies  to  a  large 
extent  on  external  support.  The  debate  was  halted  at  an  early  stage  due  to  the  political 
impasse after the assassination of General Wissam Al-Hassan in October  

Other human rights and governance-related issues 

The  Parliamentary  Human  Rights  Committee  announced  a  National  Human  Rights 
Action Plan on International Human Rights Day 2012. Progress has been impeded due to 
divisions  within  the  Parliament,  most  notably  regarding  Palestinian  refugees.  The  Plan 
still needs to be voted on by Parliament. 

Existing laws criminalise all forms of torture, including psychological torture. Lebanon 
ratified  the  UN  Convention  against  Torture  and  the  operational  protocol  to  that 
Convention, but there are no national preventive mechanisms in place. Recently reported 
incidents,  including  the  arrest  and  torture  of  a  journalist,  and  anal  examinations 
performed  on  men  in  ISF  custody,  indicate  that  such  practices  continue.  Civil  society 
organisations have called on Lebanon’s judiciary to investigate and prosecute cases of ill-
treatment and abuse of migrant workers by army and intelligence officials. 

6 

 
 
Lebanon’s prisons do not meet international standards in terms of space, food and water 
or hygiene. During the reporting period there were several prison riots including hostage 
incidents  and  there  were  recurrent  protests  against  pre-trial  detention.  In  June  the  ISF 
reportedly admitted that 73% of inmates were in pre-trial detention, while the Ministry of 
Justice reported a figure of 54%. The management and administrative capacity of prisons 
are  weak,  with  limited  monitoring  of  corruption,  misbehaviour  or  human  rights  abuses. 
Lax  security  arrangements  made  it  possible  for  some  inmates  to  escape.  Despite  an 
official request in 2006 by the Ministry of Interior for the Ministry of Justice to take over 
responsibility for prison administration, the transfer has not been made and preparations 
have not been finalised. 

There were no new developments on the abolition of the death penalty. Several persons 
accused of espionage were sentenced to death in the reporting period. The total number 
of those sentenced to death remains unclear. 

The situation of refugees and asylum seekers remained unchanged. Lebanon is not yet a 
party  to  the  1951  Geneva  Convention  on  the  Status  of  Refugees.  Negotiations  on  a 
revised Memorandum of Understanding between the Office of the United Nations High 
Commissioner for Refugees (UNHCR) and the GS, which would fill the protection gap, 
are ongoing but progress has been slow. The Lebanese government and population were 
commended  for  extending  protection  to  the  large  number  of  people  fleeing  violence  in 
Syria. 

With  respect  to  migrant  workers,  the  sponsorship  system  remains  in  place  without 
proper legal protection and there are continuing reports of abuse and maltreatment. The 
EU  publicly  criticised  this  situation  in  a  March  statement.  Detention  conditions  for 
migrant  workers,  asylum  seekers  and  refugees  with  irregular  migrant  status  are 
deplorable. 

Palestinian  refugees  in  Lebanon  continue  to  have  difficulties  with  their  legal  situation 
and  rights.  There  was  some  progress  as  regards  their  freedom  of  movement  when  the 
LAF eased requirements for entry into the Nahr el-Bared Camp in July. Amendments to 
labour and social security laws, introduced in August 2010, have not been implemented 
as  the  relevant  decrees  have  not  been  issued.  The  Lebanese  Palestinian  Dialogue 
Committee (LPDC) was revived when a new president was appointed in June. 

In  the  area  of  women’s  rights,  the  draft  law  on  domestic  violence  was  submitted  to 
parliament following extensive redrafting in order to address forced sexual relations and 
threats  between  spouses.  Lebanese  legislation  continues  to  prevent  Lebanese  women 
from  passing  their  nationality  on  to  their  children.  Female  participation  in  political  life 
remains low. No woman holds a ministerial post and there are only four female members 
of  Parliament.  The  current  draft  election  law  limits  the  requirement  for  women  on 
candidate lists to one woman per list. 

In  the  field  of  economic  and  social  rights,  the  tripartite  dialogue  began  in  early  2012 
following strikes led by the General Union of Labour Workers (GULW) but this process 
was  not  sustained.  Later  in  the  year  there  were  further  protests  by  teachers  and  civil 

7 

 
 
servants  despite  the  fact  that,  legally,  civil  servants  cannot  unionise.  They  demanded 
broad  reforms  to  employment  benefits  and  labour  market  regulation  but  only  limited 
salary  adjustments  were  introduced.  Measures  relating  to  social  protection,  healthcare, 
pensions, labour market regulation and the institutionalisation of tripartite dialogue were 
dropped.  The  government  agreed  in  September  to  a  substantial  wage  increase  for  civil 
servants but the financing of the additional expenses has not been approved. 

The Office of the Minister of State for Administrative Reform is implementing a strategy 
for  administrative  reform,  to  enhance  public  transparency,  accountability  and 
effectiveness.  The  Cabinet  has  not  yet  endorsed  the  strategy.  The  Cabinet  endorsed 
legislation  to  modernise  public  procurement  and  it  was  transmitted  to  Parliament  in 
December.  The  EU  has  provided  EUR  9  million  in  support  to  these  administrative 
reforms since late 2011. 

The Government did not achieve further administrative decentralisation or reform of the 
Independent  Municipal  Fund.  The  Minister  of  Interior  created  a  committee  to  draft  a 
decentralisation law but its work has not yet been delivered. A financing agreement for 
an  EU  project  to  support  municipal  finance  reforms  and  the  Municipal  Development 
Fund  (EUR  20  million)  was  signed  in  January.  However,  the  project  is  being 
implemented  slowly  due  to  a  low  level  of  commitment  by  the  Ministry.  Civil  society 
have not been systematically consulted on or involved in Government work. One positive 
development was the consultation concerning the new EU-Lebanon Action Plan. 

Cooperation  on  foreign  and  security  policy,  regional  and  international  issues, 
conflict prevention and crisis management 

The Government remained committed to implementing the relevant UN Security Council 
Resolutions, mainly no. 1701 and no. 1757. It also maintained its commitment to working 
with the UN Interim Force in Lebanon (UNIFIL) on implementing UNSCR 1701, and on 
a joint strategy for LAF and UNIFIL. Following UNIFIL’s strategic review (completed in 
March), the LAF worked on a roadmap to increase its capabilities in the South. Limited 
progress  was  made  in  this  regard,  as  the  LAF’s  operational  capacities  were  stretched 
following  the  redeployment  of  one  third  of  the  LAF  brigades  from  the  South  to  other 
parts of the country in response to security needs. The security situation in the UNIFIL 
area remained calm in 2012. 

The  UN,  supported  by  the  EU,  calls  on  Lebanon  to  advance  implementation  of  the 
provisions  of  UNSC  Resolution  1701  on  the  disarmament  of  all  armed  groups  and  full 
control  of  arms  distribution  and  ownership  by  the  authorities.  Several  incidents  took 
place  in  2012  that  demonstrated  that  possession  of  light  weapons  is  widespread  among 
the  various  communities  and  is  largely  uncontrolled.  This  situation  could  worsen  the 
instability in Lebanon. 

Syria  continued  to  be  of  concern  for  the  region.  The  mainstream  political  leaders  in 
Lebanon  sought  to  maintain  internal  stability  and  avoid  any  spill-over  of  the  conflict. 
Officially  Lebanon  ‘disassociates’  itself  from  the  Syrian  crisis.  Several  cross-border 

8 

 
 
incidents,  including  shelling  and  the  reported  transfer  of  weapons  were  problematic  for 
Lebanese-Syrian relations. 

The Lebanese Government, however, continued to help people fleeing violence in Syria 
to  enter  Lebanon  and  provided  much-needed  assistance.  By  the  end  of  the  year  around 
180 000  Syrian  refugees  were  registered  or  were  being  processed  by  the  UNHCR  in 
Lebanon.  In  December  the  Lebanese  Government  stepped  up  its  involvement  in  the 
expanding  refugee  situation  in  Lebanon  and  announced  its  EUR  137  million  national 
response  plan.  The  recent  crisis  highlighted  the  need  to  strengthen  Lebanon’s  ability  to 
deal  with  conflict  prevention  and  crisis  management.  In  providing  the  necessary 
assistance  the  Government  is  working  in  close  coordination  with  international  partners, 
particularly the UNHCR but also the EU. In 2012 the EU allocated EUR 44.8 million to 
the  support  of  Syrian  refugees  in  Lebanon  through  the  European  Community 
Humanitarian  Office  (ECHO)  and  the  European  Neighbourhood  and  Partnership 
Instrument (ENPI). Two ENPI support packages of EUR 5 million and EUR 10 million 
were paid out in in June and December respectively. 

3.  

ECONOMIC AND SOCIAL REFORM 

Macroeconomic framework and functioning market economy2 

The  conflict  in  Syria  continues  to  affect  the  Lebanese  economy,  in  particular  through 
disruptions to trade in agricultural goods and services (e.g. tourism). Notwithstanding its 
non-intervention policy on Syria, the perceived risk that Lebanon may be drawn into the 
conflict  has  adversely  affected  economic  activity  through  lower  tourism,  investments 
(notably in the real estate sector) and bank deposits. In addition, the increasing number of 
refugees  may  strain  the  Lebanese  budget.  GDP  growth,  which  slowed  from  7.0%  in 
2010  to  1.5%  in  2011,  is  projected  to  only  partially  recover  in  2012  to  2%.  Inflation 
accelerated to above 6%3 in 2012, reflecting higher food prices and a backward-looking 
increase of residential prices. Strong demand on basic products and on some Lebanese-
manufactured  items  from  the  disrupted  Syrian  economy  also  exerted  inflationary 
pressures. 

The fiscal situation remains vulnerable and there is a clear need for fiscal consolidation. 
The government deficit was 8.3% of GDP in  2011 and was expected to remain high in 
2012(it amounted to 6% of GDP in January-October). Political disagreements both within 
the  Cabinet  and  in  the  Parliament  hindered  fiscal  reforms.  The  most  debated  and 
contentious budgetary issue was the possible increase in public salaries by close to 40%. 
Public debt remains among the highest in the world at approximately 130% of GDP in 
2011, the same level as at the end of 2011. 

2 Figures on GDP, inflation, trade and employment are generally from Eurostat based on data supplied by 
the national statistical offices; or IMF or Commission Staff estimates, as indicated in the Statistical Annex. 
When other data sources are used these are then indicated. 
3 The Central Administration of Statistics of Lebanon included the change in housing prices since 2009 in 
the calculation of the 2012 Consumer Price Index, thus overestimating the inflation for the year. 

9 

 
 
                                                 
Lebanon's  widening  trade  deficit,  combined  with  a  negative  net  income  due  to  low 
returns  on  foreign  reserves  and  high  external  debt  payments,  only  partly  mitigated  by 
remittances and other foreign funds, translated into a large current account deficit (14% 
of GDP in 2011). The country’s large foreign exchange reserves (USD 35.1 billion as at 
the  end  of  October  2012)  help  protect  its  financial  stability  and  give  credibility  to  the 
currency peg against the US dollar. 

The banking sector is large and influential. Total bank assets grew by 8% over 2012 and 
amounted  to  more  than  350%  of  GDP  at  the  end  of  the  year,  while  deposits  grew  by 
around 7% between end-June 2011 and end-June 2012 and exceeded USD 145 billion to 
over 300% of GDP. 

Unemployment, most notably youth unemployment, is expected to remain a problematic 
issue, as 51% of the Lebanese population are below the age of 30. 

The Ministry of Labour, through the revived National Employment Office, provided first-
time jobseekers with accelerated training, complemented with traineeships in companies. 
This  initiative  was  carried  out  in  cooperation  with  the  World  Bank.  Companies  are 
exempt  from  social  charges  (paid  by  the  Government)  for  the  first  six  months  of 
employment if they hire the trainees at the end of their traineeship. 

There was no progress with regard to social protection reforms. The reactivation of the 
tripartite  dialogue  was  unsuccessful.  Although  the  Government  committed  to  reactivate 
the Social and Economic Council, so far no progress has been achieved. 

Regarding  poverty,  28%  of  the  population  live  with  less  than  4  dollars  per  person  per 
day,  and  8%  live  under  the  extreme  poverty  line  with  2  dollars  or  less  per  day.  The 
Ministry  of  Social  Affairs  with  the  World  Bank  continued  to  implement  the  "National 
Poverty Targeting Programme" This is the first national programme specifically targeting 
poverty  in  Lebanon;  the  Social  Ministry  estimated  that  18  000  households  (or  about 
84,000 people) benefitted from the programme. This approach of targeted social support 
does not replace the need for integrated and inclusive socio-economic policies, including 
expanded social safety nets. 

4.  

TRADE-RELATED ISSUES, MARKET AND REGULATORY REFORM 

The  EU  is  Lebanon's  main  trading  partner  accounting  for  33.5%  of  its  trade  volume  in 
20114.  Bilateral  trade  flows  increased  and  during  the  first  eleven  months  of  2012 
amounted to EUR 6.35 billion. EU exports to Lebanon increased and consisted mainly of 
machinery  and  transport  equipment,  energy  products,  agricultural  products  and 
chemicals.  EU  imports  from  Lebanon  decreased  and  consisted  mainly  of  semi-
manufactured  products,  agricultural  products,  fuel  and  mining  products,  chemicals, 
machinery and transport equipment. 

4 Data for 2012 was not available at the time of writing. 

10 

 
 
                                                 
Lebanon is yet to notify the EU of the completion of internal procedures for the entry into 
force  of  the  Protocol  on  the  Dispute  Settlement  Mechanism  signed  in  November  2010. 
Lebanon did not make any progress towards joining the WTO. Lebanon has yet to adopt 
a number  of laws and  make  progress in  bilateral services negotiations in the context of 
WTO accession. The EU continued to provide assistance for Lebanon's accession to the 
WTO – a precondition for any further deepening of bilateral trade relations with the EU.  

In February 2012, Lebanon imposed restrictions on the importation of certain EU meats 
into Lebanon following the outbreak of the Schmallenberg virus in several EU countries. 
Although the restrictions were relaxed over time, some remain in place. 

In the area of customs, some of the objectives of the first Action Plan like simplification 
of  legislation  and  procedures,  strengthening  co-operation  between  customs  and  other 
agencies working at the border or reinforcing customs controls on imports and exports of 
pirated  or  counterfeit  goods  have  been  achieved.  However,  some  operators  faced 
problems  due  to  the  lack  of  a  defined  coordination  mechanism  between  responsible 
authorities  at  the  port  of  entry.  This  has  created  problems  for  the  entry  of  goods, 
particularly agri-food products, into Lebanon. The functioning of the free zone in Beirut 
also  created  some  difficulties  with  regard  to  certification  of  origin.  Lebanon  has  not 
adopted the pan-Euro-Med protocol rules of origin with the EU. Lebanon is yet to sign 
and  ratify  the  regional  Convention  on  preferential  rules  of  origin.  Lebanon  regularly 
participated  in  the  meetings  of  the  pan-Euro-Med  Working  Group,  which  is  currently 
discussing  the  revision  of  the  rules  of  origin  in  the  framework  of  the  Regional 
Convention. 

With  respect  to  the  free  movement  of  goods  and  technical  regulations,  progress  was 
made  in  the  preparations  for  negotiations  on  an  Agreement  on  Conformity  Assessment 
and  Acceptance  of  Industrial  Products  (ACAA).  In  July  the  Cabinet  of  Ministers 
approved  a  National  ACAA  Action  Plan  to  implement  the  Palermo  Action  Plan.  It 
identifies three priority sectors: electrical products, pressure equipment and construction 
materials.  The  Commission  provided  comments  on  submitted  draft  laws  on  technical 
regulations and conformity assessment procedures, and metrology. The EU is providing 
EUR 4.2 million to support quality infrastructure with technical assistance and twinning 
in 2012 to 2015. The National Metrology Council was established in August 2012 with 
EU support. 

Regarding  sanitary  and  phyto-sanitary 
issues,  Lebanon  adopted  and  started 
implementation  of  a  phyto-sanitary  development  strategy  for  2012  to  2016.  Work 
resumed  on  the  EU-supported  draft  law  on  food  safety.  The  file  is  currently  under 
discussion in the parliament, but has not made any significant progress. In June, Lebanon 
became  eligible  for  exports  of  honey  to  the  EU.  Lebanon  participated  in  a 
Commission/European Food Safety Agency/TAIEX supported Mediterranean seminar on 
animal identification and disease control measures. 

Lebanon’s business climate deteriorated further due to the regional situation. Compared 
to  the  previous  year,  Lebanon  fell  to  the  115th  place  (out  of  185)  in  the  ease  of  doing 
business  ranking  in  the  World  Bank’s  ‘Doing  Business  2013’  annual  report.  The  high 

11 

 
 
cost  of  logistics,  labour  and  land  in  urban  areas,  poor  supply  of  energy,  difficulty  in 
acquiring  construction  permits,  and  the  unpredictability  of  administrative  and  juridical 
decisions  continued  to  inhibit  investors.  The  World  Economic  Forum’s  Global 
Competitiveness  report  2012-13  also  highlighted  Lebanon’s  relatively  poor  internet 
service  provision,  low  level  of  investment  in  infrastructure,  government  inefficiency, 
instability and corruption. 

Although  of  the  relevant  law  was  passed  in  2011,  the  National  Council  for  Financial 
Markets in Lebanon, a financial services regulator, has yet to be established largely due 
to delays in making the relevant administrative appointments. There were no significant 
developments can be reported in the area of movement of capital. 

As  for  company  law,  the  Ministry  of  Justice  started  a  close  cooperation  with  the 
International Finance Corporation (IFC) and EU to modernize the Commercial Registry 
of  Beirut,  simplifying  the  registration  of  companies  and  giving  the  possibility  of 
registering  online.  A  second  area  of  reform  will  be  to  strengthen  the  regime  for  debt 
resolution  and  insolvency,  in  order  to  promote  business  continuity  and  save  jobs.  The 
third objective is to create a modern legal framework for bank lending to SMEs, whereby 
loans could be secured by movable property and accounts receivable. As in many other 
areas,  the  relevant  draft  legislation  is  part  of  the  backlog  in  Parliamentary  decision-
making. 

Lebanon does not have a comprehensive enterprise policy beyond the measures outlined 
above,  but  participated  in  2012  in  the  Euro-Mediterranean  industrial  cooperation  and 
shared knowledge, tools and good practice to spur entrepreneurship and promote SMEs 
in areas covered by the Euro-Mediterranean Charter for Enterprise and in specific sectors: 
textiles and clothing, tourism, raw materials and space. 

Other key areas 

There  was  limited  progress  in  the  area  of  taxation.  The  EU  helped  the  Lebanese  Tax 
Administration  to  modernise  and  upgrade.  A  EUR  1.85  million  twinning  project  for 
2012-2014 aims to increase tax revenue and improve tax governance. 

The Central Administration for Statistics (CAS) worked to improve the availability and 
quality of national accounts, trade data and social statistics, and, with the support of the 
EU,  studied  the  feasibility  of  setting  up  a  business  register.  The  Statistical  Master  Plan 
was  being  updated  thanks  to  World  Bank  grant.  The  CAS  continued  to  suffer  from  a 
chronic  lack  of  resources,  but  is  committed  to  working  with  the  EU  in  the  following 
areas: internal capacity building, national  accounts and social,  migration and  household 
data. 

In  December,  the  Government  submitted  to  the  Parliament  a  new  public  procurement 
law, drafted with EU support. 

There were no significant developments in the areas of competition policy and state aid, 
intellectual property or consumer protection. 

12 

 
 
There  were  no  developments  in  2012  in  the  regulatory  framework  for  public  finance 
management  and  public  internal  financial  control,  but  the  Institute  of  Finance 
developed  two  guides  for  Parliament  on  strengthening  financial  oversight  in  Lebanon 
within a European Union funded project. 

Lebanon substantially increased its utilisation of the EU TAIEX instrument: study visits 
and workshops were held in a wide range of domains, e.g. consumer protection, market 
surveillance,  food  safety,  judicial  cooperation,  statistics,  scientific  research,  drug 
prevention, environment and customs. 

5.  

COOPERATION ON JUSTICE, FREEDOM AND SECURITY 

No  progress  was  made  the  development  of  a  comprehensive,  integrated  border 
management (IBM) strategy. The border between Lebanon and Syria is not adequately 
delineated or controlled and incursions into Lebanon by Syrian armed forces continued. 
Given the security situation and the political sensitivities at stake, it seems unlikely that 
significant progress on delineation will be made in the short or medium term. The arrival 
of large numbers of Syrian throughout 2012 further exposed the inability of the security 
agencies to secure and control the border in accordance with international standards. In 
addition to the support provided to relieve the humanitarian situation of Syrian refugees, 
the  EU  provided  assistance  to  Lebanon  on  IBM  in  the  framework  of  "Developing 
national  capability  for  security  and  stabilisation"  programme.  The  specific  IBM  project 
started on 1 October; a kick-off meeting took place to explore the need for adjustments to 
the project in light of the crisis in Syria. 

The Lebanese authorities indicated their intention to move towards issuing of biometric 
passports in the coming years. General Security is in charge of the process, but the high 
costs involved may prove to be prohibitive. 

After adopting  an anti-human trafficking law in 2011, further consideration  should be 
given to the prevention of trafficking and the situation of children, which are not covered 
by this law. 

Following the blacklisting of a Lebanese bank by the US Department of the Treasury in 
2011 as a "financial institution of prime-money laundering concern", authorities planned 
to  place  tighter  restrictions  on  the  movement  of  capital.  The  Central  Bank  announced 
plans to significantly increase the level of capital money exchangers must hold in order to 
operate,  which  would  eliminate  many  of  the  smaller  money  exchange  operations.  New 
regulations,  which  were  subject  to  consultation,  will  also  oblige  money  exchangers  to 
have  at  least  one  compliance  officer,  to  invest  in  anti-fraud  software,  and  to  report 
suspicious transactions. 

No progress was made in relation to the draft law on cybercrime prepared in 2010. A visit 
by the EU Counter-Terrorism Coordinator in July highlighted the need for Lebanon to 
review operational mandates and improve inter-agency cooperation between the relevant 
security  services.  Several  individuals  were  arrested  on  charges  of  links  to  terrorist 
organisations,  but  there  have  been  no  successful  conviction.  Up  to  200  individuals  on 

13 

 
 
terrorist charges remained in pre-trial detention. A small number of them were released in 
June in response to violent protests in Tripoli. 

The  absence  of  a  National  Drug  Policy  meant  that  actions  to  reduce  drug  supply  and 
demand  were  not  systematic.  Reduced  numbers  of  trained  personnel,  limited  resources 
and a lack of reliable data made the work of the ISF Counter-Narcotics Bureau difficult, 
despite  their  strong  commitment.  The  authorities  destroyed  some  opium  and  cannabis 
plants. However, there was only a slight reduction in the overall territory used for illicit 
crops.  Over  the  summer,  eradication  operations  were  halted  following  clashes  and 
protests in the Bekaa region. The Government decided to form a committee to examine 
the issue of drug cultivation and sought to develop programmes for people in the affected 
areas.  In  August,  the  Council  of  Ministers  approved  EUR  12  million  in  funding, 
including  for  subsidies  for  alternative  crops.  These  were  several  high-profile  drug 
seizures  at  Beirut  ports.  Lebanon  attended  the  multi-country  workshop  on  Drug 
Prevention and Monitoring: Situation and Perspectives in the ENP Southern Partnership 
Countries organised by the European Commission and the European Monitoring Centre 
for  Drugs  and  Drug  Addiction  (EMCDDA)  under  the  auspices  of  the  Cypriot  EU 
Presidency, which took place in Cyprus in October. The EU-Lebanon Dialogue on Drugs 
took place in Brussels in October. 

There  was  no  significant  progress  in  the  field  of  judicial  and  law-enforcement 
cooperation  and  a  number  of  international  conventions  regarding  family  law,  and 
particularly children, remain unsigned. The EU will assist the Ministry of Justice / Office 
of  the  General  Prosecutor  in  setting  up  a  bureau  for  more  effective  international 
cooperation in judicial affairs. 

6.  

TRANSPORT,  ENERGY,  ENVIRONMENT,  THE  INFORMATION  SOCIETY,  RESEARCH 
AND INNOVATION 

Coordination on priority transport projects between the relevant authorities (Ministry of 
Public  Works  and  Transport  (MoPWT)  and  the  Council  for  Development  and 
Reconstruction  (CDR))  was  often  weak.  In  order  to  respond  to  this  challenge,  an  EU-
funded project to strengthen institutional capacity, improve coordination and leadership is 
ongoing. The EIB financed the construction of the Arab Highway and Tripoli Ring Road. 
Preparations were made to carry out feasibility studies for a cruise ship port in Jounieh 
and a Syria-Tripoli rail connection. Within the implementation of the Regional Transport 
Action Plan, the European Neighbourhood Instrument (ENI) financed EuroMed projects 
on land transport and on the promotion of road safety and traffic code enforcement. The 
restoration  and  upgrading  of  the  rail  network  into  a  multimodal  service  remained  at  a 
standstill. There was no progress on the establishment of a Civil Aviation Authority. The 
EU’s  attempts  to  reactivate  negotiations  on  the  EU-Lebanon  Aviation  Agreement  were 
not  successful.  Lebanon  collaborated  with  the  Mediterranean  Aviation  Safety  Cell 
(MASC)  within 
the  European  Aviation  Safety  Agency  (EASA)  on  regulatory 
convergence in the field of safety. In September 2012, the MoPWT approved a Country 
Action  Plan  on  ‘Motorways  of  the  Sea’  aiming  to  facilitate  trade  by  developing  an 
integrated port community system (IPCS) and dry port facilities. 

14 

 
 
Lebanon's energy demand continued to outstrip supply, leading to daily power cuts of up 
to thirteen hours. Those who can afford it rely on fuel-operated backup generators. In line 
with the energy strategy, the Government aims to achieve around-the-clock services by 
2014. Despite the lack of available resources, this requires substantial investment in the 
rehabilitation  of  old  power  plants  and  the  construction  of  new  ones.  Lebanon  plans  to 
leverage private sector financing for this purpose. There are plans in the private sector to 
launch a wind farm project in 2013. Lebanon took some short-term measures including 
the  preparation  of  power  supply  from  offshore  barges.  Lebanon  plans  to  increase  the 
proportion of renewable energy in its energy mix to 12% by 2020. With EU assistance, it 
prepared  a  comprehensive  scheme  for  investment  in  renewable  and  energy  efficiency. 
The first projects were launched in June. Projects are continuing on energy efficiency in 
SMEs, solar water heaters and efficient lightning. No substantial progress has been noted 
on the unbundling of Electricité de Liban (EdL) or on the establishment of an Electricity 
Regulatory Authority. Treasury transfers to EdL continued to impose a substantial burden 
on the national budget. Lebanon continued to search for possible off-shore hydrocarbons 
resources.  The  structure  of  the  Petroleum  Authority  was  agreed  in  February  and  its  six 
members  were  nominated  in  November.    The  first  hydrocarbon  licensing  round  is 
expected in early 2013. The Authority’s independence and technical competence will be 
important  for  the  future  management  of  any  hydrocarbons  discoveries.  There  is  no 
agreement  yet  on  how  possible  revenues  would  be  used;  the  Petroleum  Law  provides 
forthe establishment of a Sovereign Wealth Fund. 

As  regards  climate  change,  Lebanon  established  an  inter-ministerial  committee, 
composed of the Ministers of Environment, Foreign Affairs, Social Affairs and Economy 
and Trade, to complete the national report for RIO+20. Lebanon launched a debate with 
NGOs  and  academia  to  develop  its  position  for  the  United  Nations  Framework 
Convention on Climate Change (UNFCCC) Conference of the Parties in Doha. Lebanon 
is encouraged to build capacity and engage in the new carbon market mechanism to be 
developed following the 17th and 18th sessions of the UNFCC Conference of the Parties. 
With the support of the newly launched regional technical assistance project for climate 
change and related matters, Lebanon is encouraged to devise a low-carbon development 
strategy.  Additional  efforts  should  be  made  to  fully  implement  the  Cancun  and  Durban 
agreements. 

In the field of the environment, the institutional capacity of the Ministry of Environment 
was  strengthened,  including  through  the  appointment  of  five  heads  of  service.  The 
Cabinet  approved  legislation  establishing  an  environmental  prosecutor.  The  National 
Council for the Environment was established, bringing together Lebanese authorities and 
non-governmental bodies. The Council of Ministers established a ministerial committee 
to draft a water code. The Cabinet approved laws and decrees related to quarrying, nature 
reserves  and  hunting,  and  a  plan  to  combat  pollution  in  the  Qaraoun  Lake  (Lebanon's 
largest body of fresh water). Draft legislation on integrated solid waste management was 
approved  and  funds  were  allocated  to  reduce  the  use  of  hydrochlorofluorocarbon 
(HCFC).  A  strategy  on  marine  protected  areas  was  completed.  Lebanon  launched 
preparations for a strategic environmental assessment of the petroleum sector, and issued 
decrees on oil spills. 

15 

 
 
Lebanon participated actively in ENPI-financed regional projects namely, the Sustainable 
Water Integrated Management (SWIM) project and those falling under the Horizon 2020 
depollution  initiative  (the  Mediterranean  Environment  Programme  and  the  Shared 
Environmental  Information  System  support  project  led  by  the  European  Environment 
Agency).  Under  the  pollution  reduction  project  component  of  Horizon  2020,  the 
extension of the Al-Gahdir waste water treatment plant is one of the four leading projects 
of the Mediterranean Hot-Spot Identification (MeHSIP) Programme’s Project Preparation 
Implementation Facility (PPIF), financed under FEMIP and managed by the EIB. 

Lebanon actively participated in the Integrated Maritime Policy (IMP-MED) technical 
assistance project under the ENPI South programme. 

In the area of civil protection, the flagship programme for Prevention of, Preparedness 
for,  and  Response  to  natural  and  man-made  disasters  (PPRD  South)  contributed  to  the 
establishment  of  a  regional  framework  of  disaster  management  authorities  that  could 
intervene  collectively  in  the  event  of  disasters  overwhelming  the  affected  country. 
Indeed,  sustainable  development  requires  adequate  disaster  risk  reduction  efforts. 
Lebanon is among the 168 governments that adopted in 2005 the "Hyogo Framework for 
Action:  Building  the  Resilience  of  Nations  and  Communities  to  Disasters",  which 
emphasizes  the  central  role  of  disaster  risk  reduction  for  all  development  policies. 
However, work on Disaster Risk Reduction (DRR) and climate adaptation is only at the 
beginning  and  it  will  require  considerable  further  support  to  develop  capacities  and 
processes.  DRR  policy  is  fostering  dialogue  with  Civil  Society  and  NGOs,  thus 
contributing to a more sustainable democracy. Analysis of the regulatory and institutional 
frameworks  started  with  the  aim  of  strengthening  capabilities  and  inter-ministerial 
coordination in the second phase of the programme. 

In the information society, the communications sector continued to be highly politicised 
as it remained one of the few consistently revenue-generating sectors. The State remained 
the sole owner of the mobile and fixed line networks and no progress was made towards 
liberalisation  of  the  sector.  The  Ministry  of  Telecommunications  continued  to  act  as  a 
licensing  authority.  The  Telecommunications  Regulatory  Authority  (TRA)  is  still  not 
financially  independent  and  its  decision-making  power  remained  suspended.  Internet 
access  remained  relatively  expensive  and  slow  by  international  and  regional  standards, 
despite recent improvements. As regards audiovisual policy, the role of Conseil National 
de 
for 
electronic/audiovisual media are taken by the Council of Ministers. 

remains  purely  consultative  and  decisions  on 

l’Audiovisuel 

licences 

Lebanon  has  a  small  and  dispersed  but  diverse  research  and  innovation  community. 
Despite low public spending on research and the fact that no ministry is in charge of this 
area, Lebanon’s its research and innovation potential is considered to be good due to its 
highly  educated  and  skilled  human  capital.  According  to  the  Global  Innovation  Index 
2012,  Lebanon  ranked  61st  in  the  world  ranking  of  innovation,  and  in  the  11th  place 
among  North  African  and  Western  Asian  countries.  Lebanon  has  taken  some  steps 
towards  elaborating  a  strategy  for  transforming  the  country  into  a  regional  pole  for 
innovation.  Some  centres  nurturing  innovation  are  active,  such  as  Berytech,  which  has 
already provided venture capital for technology start-ups and brings together research and 

16 

 
 
entrepreneurial development. On the other hand, lack of significant developments in the 
field of IPR can be an obstacle to innovation. The lack of reliable statistics continues to 
be  problem  for  the  development  of  research  and  innovation  programming.  Under  the 
EU’s  Seventh  Framework  Programme  for  Research  and  Technological  Development 
(FP7),  11  private  and  public  Lebanese  institutions  participate  in  17  projects.  The  EU 
contribution  to  these  projects  amounted  to  EUR  45  million  of  which  more  than  EUR  2 
million  went  to  Lebanese  participating  entities.  Lebanon  participated  actively  in  FP7 
programmes in the areas of food, agriculture and fisheries, ICT, health, the environment, 
international cooperation, science in society and research potential. 

7.  

PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH 

The public education system includes a network of some 1,360 schools spread across the 
Lebanese  territory  and  welcoming  students  from  all  backgrounds.  Only  37%  of  the 
Lebanese pupils are enrolled in the public education system and the quality and internal 
efficiency  of  the  system  are  poor.  There  continued  to  be  significant  discrepancies 
between  the  standard  in  the  private  and  public  education  systems  and  disparities  in 
quality between regions. 

In  2012,  the  influx  of  Syrian  refugees  in  Lebanon  was  a  particular  challenge  for  the 
education  system.  Over  50%  of  those  who  registered  with  the  UNHCR  in  Lebanon  are 
children  and  around  32%  are  of  school  age  (5-17  years).  By  the  end  of  September  this 
concerned  around  25,600  children  of  school-going  age.  Although  enrolment  figures 
remained  low,  this  nonetheless  put  a  considerable  strain  on  the  public  education 
infrastructure in parts of the country that were already poor. 

The EU provided assistance in two areas under the National Education Strategy, namely 
retention  and  achievement  and  citizenship  education.  The  current  administration's 
commitment  to  this  plan  has  yet  to  be  fully  tested.  A  four-year  plan  to  improve  the 
quality of learning in public schools was launched in November. In October, the Cabinet 
ratified a loan agreement signed with the World Bank. The aim of the “Education Sector 
Development Plan” is to improve the quality of teaching and the learning environment in 
public  schools  from  preschool  to  secondary  level,  and  the  capacity  of  the  Ministry  of 
Education and Higher Education. 

The  higher  education  student  population  was  around  195,000  of  whom  53%  were 
females. The enrolment rate for tertiary education was 51.6%. The Lebanese University 
is  the  only  public  university  in  the  country  but  caters  for  39%  of  the  entire  student 
population.  The  governance  of  the  sector  continued  to  be  highly  centralised.  Adequate 
quality  assurance  and  accreditation  mechanisms  have  yet  to  be  put  in  place.  Two  draft 
laws were submitted to Parliament concerning the organisation of higher education and 
the establishment of a Quality Assurance Agency for Higher Education. 

The  public vocational education  system  fell  short  of  meetings  the  needs  of  individuals 
and  business  needs.  Problems  included  the  absence  of  a  comprehensive  vocational 
education  and  training  (VET)  policy  framework,  the  highly  centralised  system  of 

17 

 
 
governance, poor coordination and management, weak links with employers and outdated 
curricula  and  course  materials.  The  European  Training  Foundation  (ETF)  supported  the 
Ministry  of  Education  and  Higher  Education  in  the  design  and  implementation  of  a 
National  Qualification  Framework,  and  with  the  inclusion  of  entrepreneurship  as  key 
competence  in  VET  and  general  education.  The  ETF  also  repeated  its  participatory, 
evidence-based analysis of the VET system, which led to an updated report in 2012. The 
recommendations of the Torino Process report have partly fed into the new VET reform 
strategy. In  June, some progress was made when the Council of Ministers  approved the 
decree  on  the  reorganisation  of  VET  concerning  learning  areas  and  certificates.  The 
President issued the decree in August. 

the  authorities 

Lebanon  continued  to  be  active  in  Tempus  IV,  and  was  involved  in  23  projects, 
representing 21% of all accepted projects in the Southern Mediterranean region to date. 
Newly  accepted  projects  increased  to  seven  thanks  in  part  to  a  budget  increase  for  the 
Southern  Mediterranean  region.  Tempus  helped 
take  more 
responsibility for modernisation agenda by involving the Ministry of Higher education in 
defining  priorities  in  line  with  higher  education  strategies.  Tempus  also  encouraged 
cooperation between very diverse Lebanese higher education institutions, which had had 
little experience of working together. Quality had become a priority issue following the 
rapid expansion of the higher education sector in the 1990s. Lebanon benefitted from five 
new  scholarships  for  Erasmus  Mundus  joint  masters  courses  and  from  a  further  173 
mobility grants. 16 Lebanese researchers have benefited from Marie Curie funding since 
2007,  with  one  Lebanese  institution  receiving  EUR  381000.  Lebanon  should  make 
greater efforts  to  promote  this funding opportunity, which helps  to support researchers’ 
training, mobility and career development. 

to 

Lebanese youth and youth organisations continued to benefit from the Youth in Action 
Programme. In  2012,  30  projects were selected involving 106 young people and youth 
workers. 

The  Ministry  of  Culture  continued  to  suffer  from  a  chronic  lack  of  resources.  The 
majority  of  the  budget  was  spent  on  administration,  building  expenses  and  small  direct 
grants to Lebanese artists. The Ministry's role and tasks were therefore severely limited. 
The  EU  and  Member  States  were  involved  in  a  range  of  cultural  activities  in  Lebanon 
throughout  2012.  Lebanon  is  not  yet  a  party  to  the  2005  UNESCO  Convention  on  the 
Protection and Promotion of the Diversity of Cultural Expressions. 

Lebanon continued to work on health reform inter alia by focusing on prevention. Out-
of-pocket payments to health professionals remained widespread. The implementation of 
the  Tobacco  Control  Law,  which  entered  into  force  in  September,  is  going  well, 
particularly in Beirut, despite resistance from the restaurant sector. The law restricts, for 
example, smoking in public places. In October a draft Mental Health Act was submitted 
to  Parliament.  Lebanon  continued  participation  in  the  EU  supported  ‘Episouth  Plus’ 
project  aimed  at  increasing  health  security  in  the  Mediterranean  region  and  South  East 
Europe. Lebanon participated in a Commission/ European Centre for Disease Prevention 
and  Control  conference  and  training  course  aiming  to  strengthen  capacity  building  for 
communicable diseases prevention and control in the Mediterranean. The aim is to jointly 

18 

 
 
explore  the  scope  for  developing  a  regional  training  programme  on  intervention 
epidemiology. 

19