As delivered
Excellencies, distinguished guests, colleagues,
It is a pleasure to be with you this morning and I would like to welcome to this meeting of the Berlin Process Economic Working Group. I thank our co-chairs - Egypt, the United States and the European Union - for their continued commitment, and all participants, particularly our Libyan colleagues, for joining us.
In our mandate renewal this year, UN Security Council Resolution 2835, members of the Council welcomed the Berlin Process and encouraged its full participation and continued evolution. As we have today’s meeting, and we will continue to have other meetings of the working groups, we are bearing that in mind and thinking about how our working methods and what we expect as outcomes.
2026 has seen exceptionally high energy prices. For the Libyan economy, this could have been a prosperous year and an opportunity to invest in the country’s future. And yet, Libya is spending many more dollars than it earns, the dinar is losing value, and Libyan families across the country are seeing their purchasing power decline and life becoming more difficult.
This is not simply a question of economic performance. It is a question of how Libya's public resources are governed, who benefits from them, and how national institutions can act in the interests of the Libyan people. Many of the challenges that the Libyan economy faces come from within.
Again, in our mandate renewal the Council expressed concern on the continuing deterioration of public services, the impact of fuel smuggling, cautioned on the need to depoliticize Libya’s oil resources, noting the importance of effective oversight of Libya’s financial institutions and the importance of a unified spending framework. Not all of these are going to be part of our discussion this morning, but I emphasize that there is this understanding of the linkage between the economic factors and the political and security factors as well that informs our efforts to bring back the discussion to the Economic Working Group on these issues.
Weak economic and financial governance mean Libya’s sovereign energy and banking institutions are prone to political interference and the influence of armed groups. The consequences are unfolding in front of our eyes: illicit activities, such as money laundering and fuel smuggling are diverting billions of dollars of public resources away from the State and its citizens. The results include inflation, devaluation of the dinar, lack of funding for public services and weakened public trust. Investor confidence and Libya’s standing in the international financial system are also at stake.
The scale and pace of these trends are worrying. These are no longer long-term concerns. They are urgent short-term risks to Libya’s economic and financial stability and social stability consequently.
Addressing these challenges requires greater transparency, accountability and institutional safeguards – particularly in the management of oil revenues, fuel imports, public expenditure and foreign exchange. It also requires effective banking supervision, credible implementation of the UDP and its annex, and protection of sovereign institutions and merit-based appointments free from undue interference in both sectors.
Economic governance is inseparable from Libya’s political roadmap. Progress towards unified, accountable institutions can build trust, reduce sources of tension and lay the foundations for a sustainable political settlement, which is why economic governance must be part of our collective efforts to advance Libya's political process.
The responsibility for reform rests with Libyan institutions and leaders. International partners do have an important role in supporting credible reforms, reinforcing institutional safeguards and ensuring that our engagement is coherent and mutually reinforcing.
Our objective is simple: to protect Libya's national wealth, strengthen its institutions and ensure that its resources serve the Libyan people.
I look forward to a frank and constructive discussion.
Thank you.
