Lebanon is facing a difficult but not impossible path out of its latest crisis, Prime Minister Nawaf Salam said on Tuesday, pledging to strengthen State authority, pursue financial and banking reforms and rebuild the country after a war that he said had imposed billions of dollars in costs on the country.

Opening a parliamentary session to debate and question his government, Salam said Lebanon had been plunged into a war in March that it had not chosen and had warned against.

“We did not choose this war, and no one even asked us whether we wanted to enter it,” Salam told parliament. “It was imposed on us, and we had warned about the consequences. But you all know what happened, and I am not here to justify it.”

Salam acknowledged the severity of Lebanon’s situation, saying the country was facing an “extremely difficult” reality but could still overcome it if national interests were put ahead of political considerations.

“The situation is difficult, very difficult, but it is not impossible to overcome,” he said. “What we need is for all sincere efforts to come together around the national interest.”

Salam said the latest war had so far cost Lebanon between $3 billion and $4 billion directly, with another $4 billion to $5 billion in economic losses. The human toll, he said, was far greater.

Across the two wars, more than 9,000 people have been killed, more than 30,000 wounded and more than 1 million displaced, while tens of thousands of homes have been destroyed, Salam said. The combined economic cost is expected to exceed $27 billion.

“We have not surrendered to this reality, and we will not,” he said. “We are determined to confront it. And we are speaking today while more than 250,000 Lebanese people remain displaced.”

‘No reconstruction without funding’

Salam said he understood the hardship facing Lebanese families as prices of basic goods and necessities have risen. While the country’s difficult living conditions were the result of years of accumulated crises, he said the latest war had made them considerably worse.

He said the scale of destruction was far beyond what the Lebanese State could absorb with its current resources, making international support and financing essential.

International engagement with Lebanon has also declined, Salam said, with a significant shortfall in foreign funding and support compared with 2024. The government has spent $52 million supporting families displaced by the war, he said.

Salam rejected criticism that the State had failed to respond to the crisis.

“The State was there, and it did what it could within the limits of its capabilities, which we all know are limited,” he said. “This was one of the most difficult crises Lebanon has ever faced.”

But he said the government’s goal was not simply to manage displacement or maintain aid programs.

“There can be no sustainable reconstruction without funding, no funding without confidence, and no confidence without a capable State,” Salam said.

“Our goal is not to manage the displacement of people from the south but to bring them home. It is not to get used to shelter centers but to close them. And it is not to keep our people dependent on aid, but to restore their ability to live, work and stand on their own feet in their towns and villages.”

Reforms needed to restore confidence

Salam reiterated that his government would not withdraw its long-delayed financial gap law simply to avoid further delays. Instead, it was prepared to engage with parliament on any proposed amendments, he said.

“We will not restore growth and confidence without completing financial and banking reforms,” Salam said, adding that reaching an agreement with the International Monetary Fund remained a key priority.

“An agreement with the IMF is an indispensable lever for restoring international confidence in Lebanon,” he said.

Salam said Lebanon could not solve its current problems by returning to the policies that had contributed to previous crises.

“We cannot address today’s crisis with the same policies that helped create yesterday’s crises,” he said. “The State does not need to spend more. It needs to spend better.”

He said the government’s 2027 budget would prioritize stability rather than allowing a deficit that could fuel volatility and undermine confidence.

“We want a budget that is fiscally responsible, protects people socially, supports growth and encourages investment,” he said.

Salam also highlighted the electricity crisis, saying that resolving it and building new power plants would require billions of dollars in investment that the State could not currently provide on its own.

He warned against exploiting consumers’ need for electricity, saying rising global fuel prices did not justify private generator operators charging prices that violate official rates.

State authority and talks with Israel

Salam said his government had worked to restore Lebanon’s position in the region and reconnect its economy with the Arab world, particularly Saudi Arabia and other Gulf States.

“We have succeeded in reconnecting the Lebanese economy with its Arab surroundings, particularly Saudi Arabia and the Gulf States, and we have increased our exports to a number of Arab countries,” he said.

But he stressed that economic recovery and lasting stability would ultimately depend on the State’s ability to exercise full authority over its territory.

“There can be no lasting stability without extending the authority of the State across all Lebanese territory and placing the decision over war and peace exclusively in the hands of the State,” Salam said.

He praised the Lebanese armed forces, saying the government had worked to strengthen them as the army expands its deployment in southern Lebanon and helps residents return to their homes.

Salam also defended Lebanon’s decision to engage in direct negotiations with Israel, acknowledging that the talks would be difficult but insisting that negotiations did not mean surrendering Lebanese rights.

“Lebanon remains committed to its sovereignty over every inch of its territory,” he said. “That sovereignty requires Israel to withdraw from all Lebanese territory, while also requiring the Lebanese State to exercise control through its own forces and ensure that weapons are held by the State.”

He said people were free to disagree with the content of the framework agreement underpinning the negotiations, but rejected claims that it imposed new obligations on Lebanon.

“It is understandable that some people may disagree with the framework agreement,” Salam said. “But saying that it imposes new obligations on Lebanon is difficult to understand.”

Salam said his government was not negotiating for the sake of negotiations, but was seeking what it considered the least costly path for Lebanon to achieve its objectives.

“I am not interested in negotiating simply for the sake of negotiating,” he said. “But it is the State’s responsibility to choose the path that carries the lowest cost for the Lebanese people while achieving its goals.”

“Negotiation is not, in itself, a concession on our rights. It is a way of recovering those rights through diplomacy,” he added, saying the negotiations should ultimately be judged only after they have concluded.