Lebanese Finance Minister Highlights Commitment to Reform Despite Severe Challenges

Lebanese Finance Minister Yassin Jaber described Lebanon as undergoing one of the harshest periods in its recent history, marked by ongoing conflict that has inflicted heavy human and economic tolls. Entire villages have been reduced to rubble, communities uprooted from lands tied to them for generations, hundreds of thousands displaced, homes and infrastructure destroyed, and parts of the centuries-old cultural heritage lost. Economic activities have been severely disrupted, and public finances subjected to immense pressures.

Speaking at the 2026 Arab-European Banking and Economic Summit held in Paris under the patronage of French President Emmanuel Macron, Jaber emphasized that despite these grave challenges, the resilience of the Lebanese people remains firm. He stressed Lebanon’s unwavering commitment to reform and recovery, highlighting ongoing efforts to strengthen governance, maintain institutional continuity, and lay the groundwork for reconstruction and sustainable growth.

The summit, organized by the Union of Arab Banks in cooperation with the French Banking Federation and themed “Towards a New Global Economic and Financial Balance,” serves as a platform for dialogue among financial leaders and policymakers. It aims to enhance Arab-European cooperation, explore new partnership and investment opportunities, and support efforts to build a more balanced and sustainable global economic and financial system in the face of current international challenges.

Jaber reiterated Lebanon’s firm support for an International Monetary Fund (IMF)-backed program, viewing it as a cornerstone of the country’s recovery strategy and a framework to restore confidence, mobilize external financing, and facilitate a sustainable return to growth and stability. He underscored that the future of European-Arab cooperation should extend beyond crisis management to embrace a shared vision that promotes economic resilience, regional integration, investment, and sustainable development.

Global Economic Shifts and Regional Implications

Jaber began his address by expressing appreciation to the summit organizers and noting that the global economy is currently experiencing profound geopolitical and financial transformations. International relations and alliances are being reshaped, trade and financial flows are increasingly fragmented, and uncertainties related to energy security, supply chains, and investment are rising.

He stressed that these are not merely theoretical global trends but developments that directly impact economies, financial systems, and development prospects, particularly for countries like Lebanon situated at the crossroads of Europe and the Arab world. While these shifts present significant risks, they also offer important opportunities.

Energy security has become closely linked to economic and financial stability. Disruptions in energy supplies and price volatility are major drivers of inflation, financial pressures, and market uncertainty globally. For energy-importing countries such as Lebanon, these factors pose increasing risks to the balance of payments and foreign currency reserves.

Accordingly, Jaber highlighted the urgent need to invest in diversifying energy sources, enhancing regional interconnections, developing renewable energy, and building more resilient infrastructure. He described the energy transition not just as an environmental goal but as a financial, economic, and geopolitical necessity.

Simultaneously, the international monetary and financial landscape is undergoing significant changes, reflecting heightened concerns about geopolitical risks, financial fragmentation, and the robustness of the global financial system. In this evolving environment, emerging economies must strengthen macroeconomic management, adopt prudent and credible fiscal and monetary policies, reinforce institutions and regulatory frameworks, and deepen regional cooperation to better withstand external shocks.

Strengthening Euro-Mediterranean and Arab-European Cooperation

Jaber emphasized the importance of enhancing Euro-Mediterranean and Arab-European cooperation, not only as a framework for economic integration but also as a platform to achieve regional stability, protect investments, and bolster collective resilience. He asserted that the Mediterranean should not become a dividing line amid crises but remain a bridge for communication, trade, investment, energy collaboration, and financial partnership between Europe and the Arab world.

He pointed out that the region possesses comprehensive strengths, including capital, markets, energy resources, human talent, logistical networks, and financial expertise. Activating these complementary advantages could generate new engines for growth and economic resilience on both shores of the Mediterranean.

Lebanon’s Current Reality and Reform Efforts

Turning to Lebanon, Jaber expressed a preference to speak about progress in reforms, confidence restoration, institutional rebuilding, and aspirations for a new chapter of stability and prosperity. However, he acknowledged that Lebanon is currently enduring one of the most severe phases in its modern history.

The ongoing conflict has exacted a heavy human and economic price: entire villages have been destroyed, communities uprooted, hundreds of thousands displaced, homes, schools, and infrastructure demolished, and parts of the cultural heritage dating back centuries damaged or lost. Economic activities have been significantly disrupted, and public finances face enormous strain.

Beyond material losses, Jaber highlighted a profound human cost that cannot be measured solely by numbers or economic indicators—loss of lives, livelihoods, security, and hope.

Despite these formidable challenges, the resilience of the Lebanese people remains steadfast. The government’s commitment to reform and recovery has not wavered. Efforts continue to enhance governance, implement financial and sectoral reforms, preserve institutional continuity, and establish the foundations for recovery, reconstruction, and sustainable growth.

Lebanon views the IMF-supported program as a fundamental pillar of its recovery strategy, a framework for restoring credibility, guiding reform implementation, mobilizing external financing, and supporting a sustainable return to growth and stability.

Jaber affirmed belief in a future where Lebanon can reclaim its role as a bridge between Europe and the Arab world and as a regional hub for finance, entrepreneurship, innovation, and human capital. The country remains committed to restoring confidence, leveraging its accumulated expertise, and revitalizing its leading role in banking services within the region.

However, he cautioned that recovery cannot be achieved without security and stability. No reform program can succeed amid ongoing conflicts and uncertainty. Lebanon’s foremost need is to halt hostilities and establish lasting stability to attract investments, initiate reconstruction, and achieve economic revival.

Vision for European-Arab Partnership

Concluding his remarks, Jaber conveyed a central message: the future of European-Arab cooperation must extend beyond crisis management to rest on a shared vision that strengthens economic resilience, regional integration, investment, and sustainable growth. In a world increasingly marked by division and fragmentation, cooperation itself has become a strategic asset.

By enhancing the partnership between Europe and the Arab world, economies can be built with greater resilience, energy sector transformation supported, investment and innovation encouraged, and better opportunities created for future generations in the region.