Beyond Paper Promises: Lebanon’s Fiscal and Economic Reform Program Structural Bottlenecks

Introduction

Lebanon’s efforts to address the legacy of the 2019 financial crisis entered a new phase in 2025 following the election of President Joseph Aoun and the formation of Dr. Nawaf Salam’s government. The country is now facing a critical transition between years of systemic economic and financial deterioration and a fragile attempt to restore confidence, rebuild state institutions and place the economy on a sustainable recovery path. The new government has revealed greater emphasis on economic and fiscal reform, including the development of a medium-term fiscal framework (MTFF). This represents an important retreat from Lebanon’s traditional approach, which has often been characterized by short-term measures and delayed structural reforms. However, the reform process continues to face weighty political, institutional and security constraints.

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