Washington, April 18 (IANS) The United States and key global powers have welcomed Libya’s agreement on a unified national budget for 2026, calling it a “critical step” towards economic coordination, stability, and long-term political unity in the conflict-hit country.

In a joint statement released by Washington and nine other governments, including Egypt, France, Germany, Italy, Qatar, Saudi Arabia, Türkiye, the United Arab Emirates and the United Kingdom, the signatories said they “welcome the signing on April 11 of a unified 2026 budget for Libya, the first Libyan national budget in over a decade”.

They described the move as a breakthrough that could help bridge divisions between rival authorities in eastern and western Libya. “We applaud their constructive approach to reach this agreement, which has the potential to foster increased unity, stability, and prosperity for Libya,” the statement said.

The unified budget is expected to play a central role in stabilising Libya’s fragile economy. According to the joint statement, “Full implementation of the unified budget will help advance Libya’s financial stability, defend the value of the dinar and the Libyan people’s purchasing power”.

It added that the agreement would “enable the implementation of development projects and international investment across Libya” while strengthening key state institutions, including the Central Bank of Libya, the National Oil Corporation, and the Libyan Audit Bureau.

Energy production remains central to Libya’s recovery. The statement noted that the budget includes “the National Oil Corporation’s first operational budget in years and financing to increase energy production”. It also underlined the presence of “oversight provisions to ensure these funds are used effectively”.

The signatories stressed that boosting Libya’s oil and gas output would have wider implications beyond its borders.

“Increased oil and gas production will drive greater prosperity for the Libyan people and their international partners and contribute to regional and global energy security,” the statement said.

Alongside economic measures, the joint statement emphasised the need for a parallel political process. The countries reaffirmed their backing for the United Nations Support Mission in Libya and its roadmap.

“We reaffirm our support for the United Nations Support Mission in Libya (UNSMIL) and the roadmap developed by UN Special Representative of the Secretary-General Hanna Tetteh,” it said.

They urged Libyan stakeholders to use the UN-led framework to move towards elections and unified governance.

“We urge all stakeholders to use this roadmap and UNSMIL facilitation to advance a Libyan-led political process leading to unified governance and national elections,” the statement added.

The governments also underscored the link between economic and political stability.

“Increased economic integration will complement and strengthen the political process,” the statement said, adding that “a strong and prosperous Libya with unified economic, military, and political institutions is in all of our interests”.

Libya has remained politically fragmented since the 2011 uprising that led to the fall of longtime leader Muammar Gaddafi. Rival administrations in the east and west have competed for control over state institutions and oil revenues, often backed by foreign actors.

–IANS

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