Lebanon is at a significant economic precipice — with its debt sitting at 150% of its gross domestic product (GDP) in 2018, its growth was limited to only 1% that year according to the World Bank. To avoid debt restructuring and the economic collapse that would likely accompany it, prospects for growth hinge on restoring confidence in the economy, unlocking a host of pledged foreign investments and tackling the country’s budget deficit.

Lebanon’s deficit amounted to 11% of GDP last year, and since April, the country’s Cabinet has been working to prepare what Prime Minister Saad Hariri has said would be the “most austere budget in Lebanon’s history” — but it has had little success so far. After missing several deadlines to prepare a draft budget, Lebanese leaders are reportedly now preparing to publicly announce on May 22 decisions on cuts to public wages, salaries and pensions, which represent the lion's share of expenditures that are available for reductions.

The issue of public pay and benefits has animated a widespread debate in Lebanon since April. Protests and strikes against such cuts have taken place across the public sector over the course of the past few weeks, fueled by long-running anger with the political class and deep economic inequality in the country.

Demonstrators and public figures alike have urged politicians to avoid placing the burden of austerity onto public workers, and to improve tax collection and fight tax evasion and corruption instead. Although some leaders have made promises to public employees that their interests would be safeguarded, as the Cabinet approaches the tail end of the negotiations, it remains unclear whether these promises will be kept and whether adequate cuts will be made.