Lebanon

February 2007 | Risk Summary

For once we (tentatively) highlight an upside risk to Lebanon's political outlook: reports of a dialogue mediated by Iran and Saudi Arabia have inspired hope that the current impasse could be resolved soon. Of course, there are still huge divisions, and our feeling is that it will take an overhauling of the entire electoral system for Lebanon to be able to move forward in the long term. However, Hizbullah leader Hassan Nasrallah's Ashura speech in which he appeared to condemn the idea of civil war, as well as his statement that 'we reject a recourse to arms', are both encouraging

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