Lebanon's PM forms new government

Lebanon formed a new government on Saturday, following unusually direct U.S. intervention in the process and in a step intended to bring the country closer to accessing reconstruction funds following a devastating war between Israel and Hezbollah.

Speaking to reporters at the presidential palace, new Prime Minister Nawaf Salam said the 24-member cabinet would prioritise financial reforms, reconstruction and the implementation of a United Nations resolution seen as a cornerstone to stability on the Lebanese border with Israel.

The announcement came after more than three weeks of talks with rival political parties in Lebanon - where government posts are parcelled out according to sect - and days of deadlock over the Shi'ite Muslim ministers, usually named by Iran-backed Hezbollah and its Shi'ite ally Amal.

But Washington has pushed back against Hezbollah's sway in any new government.

U.S. deputy Middle East envoy Morgan Ortagus said on Friday that the U.S. considered Hezbollah's involvement in the new cabinet a "red line" and thanked Israel for dealing devastating blows to the group, in a controversial statement that sparked protests in Lebanon.

Ultimately, Hezbollah's ally Amal - which is headed by Parliament Speaker Nabih Berri - was allowed to choose four of the new cabinet's members, including Finance Minister Yassin Jaber, and give its nod of approval to a fifth.

That prevents Hezbollah and its allies from wielding a "blocking third" in the government, where a two-thirds vote is needed to pass some decisions.

The U.S. embassy in Lebanon welcomed the cabinet announcement, saying it hoped it would rebuild Lebanon's state institutions and implement needed reforms.

KEY TO REFORMS

The Christian Lebanese Forces Party, which is fiercely opposed to Hezbollah and has not been part of a cabinet in more than five years, also picked four ministers, including Foreign Affairs Minister Youssef Raji and Energy Minister Joseph Saddi.

Salam said he hoped the politically diverse cabinet would "work in harmony".

"This government will seek to restore confidence between citizens and the state, between Lebanon and its Arab surroundings, and between Lebanon and the international community," he said.

Lebanon has been hit hard over the last half-decade by a financial collapse that impoverished large parts of the population, a cataclysmic explosion at the Beirut port and a more than year-long war between Israel and Hezbollah that destroyed swathes of the country.

Forming a cabinet was seen as an essential step to undertaking reforms that could open the door to a financing plan under the International Monetary Fund and accessing support from key Gulf countries to help rebuild destroyed areas.

The United Nations said the government formation "heralds a new and brighter chapter for Lebanon", and said it hoped to work with the new cabinet on reforms and implementing U.N. Security Council Resolution 1701, which calls for disarming armed groups in Lebanon - seen as a reference to Hezbollah.

Salam said on Saturday the new cabinet would prioritise implementing that resolution, along with the ceasefire deal that ended the last year of conflict between Hezbollah and Israel.

That deal stipulates that Israeli troops should leave southern Lebanon, Hezbollah should pull out its fighters and arms and the Lebanese army should deploy in the area by Feb. 18.

The cabinet is now charged with drafting a policy statement - a broad outline of the upcoming government's approach and priorities - and will then need a vote of confidence from Lebanon's parliament to be fully empowered.

Lebanese president Joseph Aoun, who enjoyed U.S. backing as army commander, was elected as president on January 9 and nominated Salam to form a new government days later. Salam had been serving as the head of the International Court of Justice.

Salam's nomination was the latest signal of a dramatic shift in the power balance in Lebanon, following the heavy blows Israel dealt to Hezbollah, the ousting in December of Hezbollah's Syrian ally Bashar al-Assad and Aoun's election last month.