Lebanon is a partner country within the European Neighbourhood Policy (ENP). This country page contains, or links to, DG ECFIN’s recent analytical work on the economy of Lebanon.
The EU held its last Sub-Committee on Economic and Financial Matters with Lebanese authorities in Brussels in September 2014. The European Commission presented the EU economic outlook based on the spring 2014 economic forecast. The Lebanese authorities reviewed recent macroeconomic developments, including the impact of the conflict in Syria and challenges for fiscal and monetary policies.
The next meeting will take place in Beirut in autumn 2015.
Following the International Conference for Support to Lebanon (“Paris III”) in 2007, the EU provided Macro-Financial Assistance (MFA) to Lebanon comprising of EUR 50 million in loans and a grant of EUR 30 million. The primary objectives of the MFA operation in Lebanon were to (i) support Lebanon’s post-war reconstruction and sustainable economic recovery; (ii) help finance the government’s economic programme; and (iii) support Lebanon’s efforts to reduce public debt to a sustainable level.
The MFA was divided into two tranches tied to successful implementation of an IMF programme and specific structural conditions. The MFA complemented support from international financial institutions, bilateral donors, and other EU assistance provided under the European Neighbourhood and Partnership Instrument (ENPI). As the conditions for the release of the first instalment were met, the first grant (EUR 15 million) and loan (EUR 25 million) tranches were disbursed in December 2008 and May 2009, respectively. Due to slow progress in implementing structural reforms and following the expiration of the IMF arrangement in June 2009, the second tranche was cancelled. An evaluation of the MFA programme is available.
The links below provide additional information on EU-Lebanon relations: