In a significant stride towards rebuilding the nation’s financial foundation, Libya has successfully approved a unified state budget for the first time since 2013. This landmark agreement, achieved amidst a backdrop of prolonged conflict and political fragmentation, was endorsed by the country’s rival legislative bodies—a rare instance of cooperation in a deeply divided nation.
The Central Bank of Libya confirmed the budget’s approval on Saturday, heralding the move as a critical step towards restoring financial stability. Governor Naji Issa, during the signing ceremony in Tripoli, emphasized the symbolic importance of the agreement, noting, “This is a clear declaration that Libya is capable of overcoming its differences when a unified vision for its future is forged.”The country’s fragmentation dates back to the 2014 civil war, which resulted in two rival administrations—one in the east and another in the west—each competing for control. The House of Representatives (HoR), based in the east, and the Tripoli-based High Council of State came together to finalize the budget deal, representing a crucial moment of national unity.
Despite this breakthrough, political divisions remain deeply rooted. Eastern forces, loyal to General Khalifa Haftar, continue to dominate significant parts of the country, including key oil-producing regions. His Libyan National Army controls major export terminals and vital oil fields. This situation underscores the broader political fragmentation and the complex challenges facing the nation.
The timing of the budget agreement could not be more poignant, as Libya’s importance in global energy markets grows. The nation’s crude oil demand has surged amidst disruptions linked to the Israel-US war on Iran and the blockade of the Strait of Hormuz. Its strategic geographic location allows for quick oil shipments to European refineries, offering a crucial alternative to Gulf routes that are fraught with risks such as military escorts and high insurance costs.
Source: aljazeera
Original author: Al Jazeera and Reuters
