Economy / Lebanon
Lebanon
July 2006 | Ratings UpdateThe Israeli attacks in July could destabilise the anti-Syrian March 14 coalition currently in government, by entrenching sectarian divisions and strengthening Shia support for Hizbollah. Indeed, the parliamentary balance was fragile at best even before the turmoil began, as evidenced by the lack of reforms seen since the new government took power. The coalition's association with the US, which is seen as having taken Israel's side in the violence, may dent its popularity even amongst previous supporters. Moreover, assuming (as we are) that Israel does not achieve its goal of decimating Hizbollah in the immediate term, the threat of
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