EU unveils €1 billion aid package to tackle Lebanon’s economic crisis and refugee challenges

European Commission President Ursula von der Leyen revealed the plan following discussions with Lebanese caretaker Prime Minister Najib Mikati and Cypriot President Nikos Christodoulides in Beirut.

The aid, consisting entirely of grants and set to be disbursed by 2027, aims to bolster essential services like education, healthcare, and social protection, while also promoting economic reforms in Lebanon. Significantly, around €736 million will be specifically allocated to assist Lebanon in managing the challenges posed by hosting Syrian refugees.

Von der Leyen emphasized the importance of supporting both the well-being of host communities and Syrian refugees, recognizing Lebanon’s significant burden in hosting over 1.5 million displaced Syrians and 210,000 Palestinian refugees. Additionally, she highlighted efforts to enhance the effectiveness of EU assistance, including facilitating structured voluntary returns of displaced Syrians in collaboration with the UN refugee agency (UNHCR).

This initiative follows EU leaders’ recent commitment to deepen engagement with Lebanon and safeguard it from regional conflicts’ repercussions. Concerns have arisen, particularly after Cyprus experienced a surge in arrivals of Syrian refugees transiting through Lebanon to reach the island, prompting a temporary halt in asylum application processing.

Both Lebanese and Cypriot leaders welcomed the aid package, acknowledging the unsustainable pressure the refugee situation places on their economies and societies. They endorsed intensifying collaboration with UNHCR on voluntary returns and proposed re-examining the status of certain regions in Syria as safe areas to facilitate refugee repatriation.

Moreover, discussions have begun on enhancing cooperation between Lebanon and the EU’s border agency, Frontex, particularly regarding information exchange and situational awareness. This move comes amid growing concerns about security threats to Lebanon, especially in the context of the conflict between Israel and Hamas, with Hezbollah’s presence exacerbating tensions along the southern border.

Von der Leyen urged respect for UN resolutions calling on Israel to withdraw its troops from the border demarcation with Lebanon, emphasizing the intertwined security interests of both Lebanon and Israel. As discussions progress, the EU aims to provide comprehensive support to Lebanon, addressing its economic challenges and refugee crises while striving to maintain regional stability.