Lebanon spins further into crisis as Hariri abandons bid to form government

BEIRUT, (Reuters) - Lebanese politician Saad alHariri abandoned his months-long effort to form a new government yesterday, dimming the chances of a cabinet being agreed any time soon that could start rescuing the country from financial meltdown.

Hariri announced his decision after meeting President Michel Aoun, saying it was clear they could not agree, underscoring the political squabbling that has blocked the formation of a cabinet even as Lebanon sinks deeper into crisis.

Hariri, a former prime minister and Lebanon's leading Sunni Muslim politician, was designated in October to assemble a government following the resignation of Prime Minister Hassan Diab's cabinet in the wake of the Beirut port explosion.

Protesters blocked some roads near predominantly Sunni areas of Beirut after his announcement on Thursday, setting fire to trash and tyres. Army troops deployed, firing in the air to disperse protesters who pelted the soldiers with missiles. One soldier was wounded, a security source said.

French Foreign Minister Jean-Yves Le Drian said Lebanese leaders seemed unable to find a solution to the crisis that they had created, calling the failure to form a cabinet another terrible incident.

The secretary general of the Arab League, Ahmed Aboul Gheit, said the ramifications of the step would be serious.

U.S. Secretary of State Antony Blinken said Hariri's decision was "disappointing" and urged Lebanese leaders to put aside their differences and form a government.

The World Bank has described Lebanon's depression as one of the sharpest in modern history. The currency has lost more than 90% of its value in two years; poverty has spread and there have been crippling fuel shortages, prompting growing fears of social unrest.