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lebanon

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Lebanon – background information

General Information on Lebanon

The Lebanese GDP presented no growth in 2000 and only 1% in 2001. There are indications of a slight improvement in growth in 2005. Unemployment rate was 8 % in 2001. The government faces a daunting task of coping with a crippling public debt (€ 30 billion, or 160% of GDP). Lebanon has firmly embraced the task of introducing liberal economic policies, tax reform and privatisation. The absence of an Arab-Israel peace treaty has brought complexities in the Lebanese foreign policy. A milestone in Lebanon’s recovery after the civil war was the withdrawal of Israeli forces from South Lebanon in May 2000 but the tense in the relationships with Israel has not ceased.

A co-operation Agreement between the Republic of Lebanon and the European Community has been signed on 03/05/1977. Since then, Lebanon has received almost 1,8 billion euro in EC assistance: 553 million euro in EIB loans (as well as 7 million euro Commission special loans, 3 million euro risk capital managed by EIB); 332 million euro in EC grants (four Protocols, MEDA I, other budget lines); more than 900 million euro from Member States (Italy 50%, France 32%, Germany 14%).

Financial assistance of MEDA I (1995-2000) amounts to 166 million euro. Indicative funding for grants under MEDA II amounts to around 75 million euro for the period 2002-2004. Under MEDA I, an Investment Planning Programme (21 million euro, plus 4 million euro Protocol funds) provides management support and technical assistance to state institutions responsible for infrastructure and utilities, including energy, water, transport, waste, environment, industry, and planning. It was signed in 28/06/1999. [1,9,11]