🌳 Zero deficit
Marhaba from your Saturday update. Parliament passed the 2026 budget with its trademark "zero deficit" accounting magic, while a forensic audit tender raises more questions than answers. Meanwhile, gold had its worst day since 1983 as Trump shook markets with his Fed pick. Ready for the weekend breakdown?
TOP STORIES
Parliament Approves 2026 Budget Despite Zero Deficit Concerns
- Parliament approved the $5.97 billion budget, up by nearly $1 billion from 2025
- Critics call it "accounting engineering" designed to produce zero deficit regardless of realistic projections or economic impact
- The budget remains one-third the size of pre-2019 spending, reflecting the diminished role of public sector investment
Why it matters: Lebanon's obsession with zero deficit budgets prioritizes optics over economic recovery—cutting public investment when the country desperately needs infrastructure spending and job creation.
Central Bank Opens Forensic Audit Tender Amid Skepticism
- Banque du Liban launched a new tender for forensic auditing services, but depositors' lawyers remain doubtful about genuine accountability
- Depositors' Association lawyer Fouad Debs says Governor Karim Saeed "doesn't want real forensic auditing" that would hold banks accountable for losses
- Previous forensic audit attempts by Alvarez & Marsal stalled due to lack of cooperation from authorities
Why it matters: After years of delays, this tender could be another charade—unless there's real political will to uncover how $100+ billion vanished from Lebanon's financial system.
Gold Crashes 9.5% as Trump Names Fed Chair
- Gold plummeted to $4,883 per ounce, its steepest daily fall since 1983
- Silver crashed nearly 30% in its worst day on record as Trump announced Kevin Warsh as Jerome Powell's replacement
- The appointment signals potential shifts in monetary policy that spooked precious metals investors
Why it matters: For Lebanese families who turned to gold as a hedge against lira collapse, this volatility is a reminder that even "safe havens" can deliver nasty surprises.
QUICK HITS
- Customs Controversy: Parliament member Elias Atallah says there's "no final agreement with any party yet" regarding government formation discussions. Political negotiations continue behind closed doors.
- Election Preparations: MP Hajj Hassan called for beginning preliminary procedures for upcoming elections. The push comes as Lebanon's political calendar remains uncertain amid ongoing government formation talks.
- Coordination Mechanism: MP Hasbani clarified that the coordination mechanism "isn't a dialogue table or negotiation table, but a coordination and discussion mechanism." The distinction matters for how Lebanese parties engage in political processes.
- Israeli Strikes Continue: Israeli forces violated the November 2024 ceasefire agreement with new air strikes on southern Lebanon, raising tensions along the border.
- Prison System Crisis: Ali Ghader, 36, died by suicide in Roumieh prison after waiting over 61 months for trial on theft charges. His death highlights Lebanon's broken justice system.
INTERNATIONAL
Syria and Kurdish Forces Seal Historic Integration Deal
- Syrian government and Kurdish-led Syrian Democratic Forces agreed to a permanent ceasefire and gradual integration framework
- Washington called it a "historic milestone" as Kurdish forces will join Syria's new army through negotiations rather than battle
- The deal ends nearly a month of fighting and resolves tensions over Kurdish autonomy in northeast Syria
Why it matters: This agreement could stabilize Syria's northeast and create a model for integrating diverse military forces—crucial for preventing the country from fragmenting further.
Israeli Strikes Kill 12 Palestinians Despite Gaza Ceasefire
- Israeli airstrikes killed at least 12 Palestinians including 6 children, one of the highest tolls since the October agreement
- Strikes hit an apartment building in Gaza City and a tent in Khan Younis, targeting two families
- The attacks came one day before the Rafah crossing was scheduled to reopen for civilian movement
Why it matters: These violations threaten the fragile ceasefire mechanism and could derail efforts to establish lasting calm in Gaza after months of devastating conflict.
Iran President Blames Foreign Powers for Protest Violence
- President Masoud Pezeshkian accused Trump, Netanyahu, and European leaders of exploiting Iran's economic crisis to incite unrest
- Rights group HRANA reports at least 6,563 killed in two weeks of protests, including 6,170 protesters and 214 security forces
- The nationwide demonstrations began in late December over soaring inflation and rising living costs
Why it matters: The scale of casualties reveals the depth of Iran's internal crisis, with economic grievances triggering the most significant unrest since the 1979 revolution.
GHER HEK
- MusiCares Honor: Mariah Carey was celebrated as MusiCares Person of the Year for her musical achievements and philanthropy, with tribute performances highlighting her secret grunge album project. The event showcased her diverse musical influence beyond the pop hits.
- Tennis Champions: Elise Mertens and Zhang Shuai claimed the Australian Open women's doubles title in Melbourne. The victory capped an impressive tournament run for the international partnership.
- Space Tourism Shift: Jeff Bezos's Blue Origin announced it will pause space tourism operations to focus on lunar mission development. The company is redirecting resources toward NASA's Artemis program and moon exploration goals.
- Political Debates Return: Lebanese politicians are reviving the tradition of televised political debates, with calls for public discussions between major party leaders. The format brings back memories of Lebanon's democratic political discourse traditions.
Thanks for reading—enjoy your weekend.