EU bolsters Lebanon with €1B aid package

The European Union has begun political dialogue with the Lebanese government to implement critical reforms, backed by substantial EU funding. The first tranche of this support, totaling 500 million euros, was disbursed last week, according to European Commission spokesman Peter Stano. The funds aim to maintain Lebanon's state cohesion amid ongoing local and regional crises and to address the humanitarian needs of Syrian and Palestinian refugees hosted by the country.

This initial package is part of a larger 1 billion euro commitment through 2027. The assistance focuses on bolstering Lebanon's infrastructure in education, health, and water access, and supporting vulnerable social groups, including Lebanese citizens and Syrian refugees.

The funding also includes 25 million euros specifically allocated for enhancing border security and management, in collaboration with agencies like Frontex and Europol, and supporting the Lebanese Armed Forces.

Cyprus had previously sought EU support for Lebanon, particularly to manage migration flows exacerbated by the country's economic crisis and the 2020 Beirut port explosion. The EU’s support comes as Lebanon faces new threats of regional instability and the potential for involvement in a broader conflict due to the Hezbollah-Israel tensions.

The second half of the package will be released later, contingent on Lebanon’s progress with the necessary reforms. The overall aim is to strengthen Lebanon’s governance, economic resilience, and green transition efforts, including renewable energy and environmental protection.

Stano emphasized that the EU’s support is grant-based, not loan-based, ensuring that Lebanon receives the aid without increasing its debt burden. Enhanced political dialogue with Lebanon is expected to facilitate the implementation of economic and administrative reforms, further stabilizing the country in these challenging times.

[Summary of George Kakouris' original story in Greek published in Kathimerini's Cyprus edition]