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Lebanon is one of the 16 partner countries whose relations with the EU are framed by the European Neighbourhood Policy (ENP). This country page presents information on DG ECFIN’s activities and economic cooperation with Lebanon.

Economic Analysis

DG ECFIN conducts regular analysis on macroeconomic and financial developments in Lebanon.

Economic Dialogue

The EU and Lebanon regularly organise bilateral macroeconomic dialogues in the framework of the Sub-Committee on Economic and Financial Matters. Meetings of the Subcommittee provide both partners with an opportunity to exchange views on their respective economic situations and outlooks, and on the major structural challenges that they face.

The last Subcommittee meeting was held in Beirut in October 2015. The European Commission presented, inter alia, the EU economic outlook based on the latest economic forecast. The Lebanese authorities reviewed recent macroeconomic developments, including the impact of the conflict in Syria, and the structural reform challenges in the energy sector, the tax system and public finance management.

Macro-Financial Assistance

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.

Related EU Policies and Activities

The links below provide additional information on EU-Lebanon relations:

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