The EU has announced a package of €150m to support the revitalisation of the Lebanese economy, with the aim of generating €1.5bn in investments over the next three years.
The European Commission has reaffirmed its commitment to supporting the revitalisation of the Lebanese economy, and expects its investment of €150m into the country, which could generate up to €1.5bn in loans.
The package also includes up to €50m in grant funding that could be mobilised to provide technical assistance, in each of the following three years. The provision of additional loans is conditional on Lebanon’s financial institutions proposing bankable projects, and adopting relevant reforms.
What commitments has the EU made to Lebanon?
Since 2011, the EU has provided more than €1.3bn in assistance for Lebanon, including both development assistance and aid. This includes:
- €268m in bilateral assistance; and
- €1.069bn in humanitarian aid in response to the Syria crisis.
Further, an External Investment Plan for Lebanon was launched last February in Beirut, Lebanon, which creates a framework for investment in countries in the European neighbourhood region.
The plan is adapted to the specific needs of partner countries, and uses foundational principles of the EU’s internal investment model, the ‘Juncker Plan’. This has triggered more than €240bn in investment in Europe, and the EU hopes to translate this success to its partner countries.
What did the European Commission say?
The new funding package for revitalisation of the Lebanese economy was announced today at the CEDRE conference in Paris, France, which was attended by some 50 countries and international organisations with the aim of raising emergency funds for investment in Lebanon.
European Commissioner for Neighbourhood Policy, Johannes Hahn, said that the investment represents the EU’s commitment to its partner nations. He explained: “The EU contribution is a signal of our support for the government of Lebanon, whose tasks include now taking forward a road map of structural reforms to boost economic development in the country for the benefit of all. We will support and accompany this effort.”