Barrack Proposal
U.S. Envoy Tom Barrack said he was “unbelievably satisfied” with the Lebanese response to the American proposal focused on disarming Hezbollah. Barrack stated that Hezbollah needed assurance that it has a future in Lebanon as a “major political party.”
In an interview with The National, Barrack said that Lebanon is facing an “existential threat” and has to be careful else it will be “going to be Bilad Al Sham1 again.” Barrack stated that the Lebanese response was “very responsive” but some “sticking points” remain. In another interview with L'Orient-Le Jour, Barrack claimed that once Hezbollah disarms, several Gulf countres will “start funding reconstruction and redevelopment projects.” Barrack’s comments on Bilad Al Sham caused controversy, after which Barrack tweeted that his comments were meant to praise “Syria’s impressive strides” and are “not a threat to Lebanon.”
On the other hand, several outlets reported, through their own American and Lebanese sources, that the Trump administration is not satisfied with Barrack and the Lebanese response. On Thursday, U.S. State Department Spokesperson Tammy Bruce said that the U.S. designates Hezbollah as a “terrorist organization” and does not distinguish between its “political or armed wings.”
War on Lebanon
Israeli forces targeted Burj Rahhal, Arzi, Matarieh, Zrariyeh, Deir Kifa, Kfarkela, Beit Lif, Bablieh, Chihine, Wazzani, Shebaa, Mansouri, Nmairiyeh, Yater, Khiam, and Yohmor. An Israeli drone strike struck a car near Tripoli killing three people, claiming the target was a Hamas member. In total, ten people were killed and over twenty were injured this week.
Israeli soldiers conducted several incursions into Lebanon throughout the week and demolished a house in Kfarkela. Israeli forces have been fortifying and expanding one of their positions in Lebanese territory.
Al-Mayadeen aired an interview with Hezbollah Secretary General Naim Kassem, which was recorded on June 11. Kassem stated that Hezbollah wasn’t preemptively informed of the Hamas operation on October 7 but opted for a “support front.” Kassem praised Iran’s role during the war and emphasized that Hezbollah avoided a full-scale war to protect Lebanon as a whole. When asked about the pager attack, Kassem stated that the cause was compromised procurement and extensive Israeli surveillance, ruling out high-level human infiltration. He emphasized that while Hezbollah did not triumph militarily, their victory was that of “continuity” by preventing Israel from achieving its goals of annihilating Hezbollah and occupying Lebanese towns.
During a meeting with Arab and International Relations Council, a Kuwaiti think tank, Lebanese President Joseph Aoun ruled out normalizing relations with Israel and emphasized the importance of good relations with Syria.
Syria
Thousands of Syrian refugees will return to their home country this week through a previously announced financial incentive scheme. The government is aiming for between 200,000 and 400,000 returns by the end of 2025.
A Syrian state-run news outlet reported, citing anonymous sources, that Syria intends to take escalatory measures against Lebanon over disagreements in handling Syrian detainees in Lebanese prisons2. The Syrian Ministry of Information denied these reports, saying that the issue will be handled through “official channels.”
Cabinet Appointments
After weeks of political tug-of-war, the Cabinet announced several high-profile appointments: Judge Maher Shaito as Financial Prosecutor, Mazen Soueid as head of the Banking Supervision Committee, and Elisar El Naddaf Geagea as chairman of Tele Liban. The government also retained Wassim Mansouri and Salim Chahine as deputy governors of the central bank, while appointing Makram Bou Nassar and Gaby Chinozian as newcomers.
Shaito, who is involved in a controversy over $2.2 million in housing loans, is a compromise choice among the three heads of government.
L'Orient-Le Jour reported that President Aoun intended to completely shuffle the Central Bank deputy governors, but Parliament Speaker Berri insisted on keeping Mansouri. Several outlets and politicians criticized the appointments based on accusations of cronyism, with some pointing to Soueid’s previous position at BankMed.
The Ministry of Economy completed appointments for the Insurance Observatory Committee, following a ten-year vacancy.
Economy
Lebanese Customs announced a “massive and unprecedented” increase in revenues this year, achieving a 193% increase compared to the same period last year.
Speaking to L'Orient-Le Jour, the general secretary of the Federation of Lebanese Tourism Unions said he expects a 30% decrease in revenue this summer.
The NSSF (Daman) announced reforms to end-of-service benefits to aid deceased workers’ families and unify laws for public and private employees.
The Union of Telecommunication Employees protested this week over labor contract disputes, ending the protests after reaching a collective labor agreement with management.
Tuk-tuk drivers blocked Tripoli’s southern entrance to protest the Interior Minister’s decision to ban the commercial usage of tuk-tuks.
Parliament
Following weeks of discussion, the Parliamentary Financial Subcommittee, formed to finalize the banking reform law, announced a “breakthrough” after a “joint formula” was agreed upon with the Central Bank and the Ministry of Finance. However, subcommittee head MP Ibrahim Kanaan announced that the reform will be on hold pending a law organizing deposit repayment and more financial reforms.
The National Economy and Trade Committee is discussing a law to place Middle East Airlines, the Tobacco Administration (Regie), and Casino du Liban under the Public Procurement Law, which allows internal audits and private sector competition.
The Parliamentary Foreign Affairs Committee approved joining the U.N. Convention on the Protection and Promotion of the Diversity of Cultural Expressions.
A law proposal was submitted by MP Melhem Riachi to adopt electronic bracelets instead of detention, aiming at “decreasing prison overcrowding.”
Legal & Security
The investigation into Casino du Liban and BetArabia is expanding with authorities questioning both Casino director Roland Khoury and Olive Support Systems chairman Jad Gharios, a part-owner of BetArabia. According to local media reports, prosecutor Dora El-Khazen charged both with illicit enrichment and money laundering. Local media also reported that Betarabia majority owner Hicham Itani, who is close to the Future Movement, has fled the country.
Attorney General Jamal Hajjar sent a letter to parliament requesting the lifting of immunity on current MP and former Industry Minister Georges Bouchikian. The former minister is being investigated for embezzlement, bribery, and extortion. Bouchikian stated that the accusations are baseless, describing the investigation as a “concentrated and organized media and political campaign.” Parliament Speaker Nabih Berri met with the Parliament's Bureau and the Justice Committee and tasked a subcommittee with preparing a detailed report to be submitted in 2 weeks.
Several Arab human rights and legal organizations, including three from Lebanon, announced the establishment of a regional network to achieve and defend the “independence of the judiciary” and the “values of justice and freedoms” in the Arab world.
Former Public Prosecutor Ghassan Oueidat was a no-show for his questioning in the Beirut Port Blast investigation.
Miscellaneous
The Ministry of Information, in partnership with UNESCO and the Organisation Internationale de la Francophonie, launched a national campaign to combat misinformation and hate speech in Lebanon.
Referring to a political idea of Syria and Lebanon belonging to a “greater nation” called Bilad Al Sham (The Levant)
Syria is asking for the release of Syrian detainees, many of them charged with terrorism and imprisoned without trial, while the Lebanese state wants to try them in Lebanese courts.