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Bahrain is about to take austerity measures



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It is expected that the Bahrain's new parliament will quickly confirm the austerity measures that the state needs in order to provide the Gulf support package, but the Bahraini government can implement these measures gradually, in order to avoid provoking public anger.

Institutions are stifling the opposition, as in 2011, with the help of Riyadh, rebuffing the uprising in a country afraid of riots in Bahrain, the turmoil between the Shiite Muslim minority in Saudi Arabia could be encouraged.

But in Bahrain, which is the cornerstone of US military power, there may be a fresh test of whether it is able to block opposition protests through the subsidies and pension reforms required by the Arab Gulf donor countries to avoid a debt crisis.

Analysts said the authorities should make changes to the stages in order to avoid protests from the opposition forces, which Parliament considers illegal after being banned from last week's elections.

In Bahrain, which does not have a huge oil wealth, such as its neighboring Gulf countries, government spending has to be reduced as public finances have been hit by oil price drops since 2014.

The state seeks to reduce costs, while avoiding public anger over financial reforms.

"The economy will remain the biggest problem for the new parliament," said Jamal Fakhro, Deputy Chairman of the Shura Council.

"The new parliament should be aware that there are some issues that can not be delayed, because any delay will not be in Bahrain's interest."

Saudi Arabia, the main supporter of Bahrain, along with the United Arab Emirates and Kuwait, has offered Manama a $ 10 billion support package in five years to 2022 to save the government as it moves forward with fiscal reforms to achieve budgetary commitment.

For Bahrainis, who say they have already been deprived of government jobs and services, austerity measures run counter to them, and they are considered second-class citizens of the 1.5 million people in the country's fifth Fleet's United States.

Authorities deny any discrimination and accuse Iran of disturbing riots between protesters and security forces who are bombarded. Tehran denies the cost.

He described the election activists as "humorous performances" after the authorities dissolved major opposition groups and prevented participants from participating.

The opposition can use austerity measures to challenge the legitimacy of the new parliament.

"We learn calls for protests and street relocations for austerity and new taxes," said Ali al-Aswad, leader of the al-Wefaq opposition, whose authorities stopped and lived in London's exile and forgot life imprisonment for spyware.

The largest opposition group in Bahrain, Al-Wefaq, has sometimes controlled half of the Bahraini parliament with about 18 seats in 2010. Opposition groups boycotted 2014 elections.

* Economic Pain
Alain Ransom, a major Middle East risk-of-control analyst, said that Bahrain can fight the rising cost of living, but protesting against austerity is unlikely to be spread. Previous subsidy reductions, introduction of a production tax and VAT approval are not the main disadvantages.

"The government will try to hold back any violent people's reactions, mitigating the impact on Bahraini citizens," Ransom said. This may include some kind of support and the gradual implementation of austerity measures. "

Most of the candidates in last week's elections defended economic reforms as a need to maintain stability.

"Value added tax is linked to political will, and this is part of our commitment to our values ​​and interests," said MP Jamal Daoud, a social media spokesman.

Last month, after the Gulf Cooperation Agreement was signed, Bahrain published a 33-page financial plan to reform its finances and eradicate its budget deficit by 2022. Manama predicted a budget deficit of 3.5 billion dollars in 2018.

By the end of the year, Bahrain will receive up to $ 2 billion as the first installment of the package, when legislators agreed to apply value added tax in 2019.

The Bahraini Parliament has limited powers, but its two parliamentary parliaments endorse the state budget and economic policies.

"The new parliament will take part in all stages of the government's fiscal balances program," the government spokeswoman told Reuters.

Deputy Prime Minister Ali al-Aradi said the government's plan will be approved in January, as well as the state budget for 2019-2020. The year, which is planned, will continue to be reduced until next April.

Other rich Gulf states have approved similar subsidies and taxes when oil prices fall in 2014.

Elizabeth Dickinson, a senior analyst at the International Crisis Group in the Arabian Peninsula, said that the Bahrainis needed to adapt to austerity measures at a time when incomes dropped and opportunities fell.

"These trends are in line with the growing attitude of many Bahraini populations, especially in those communities supported by the government during the 2011 uprising and after the pace of economic change and the improvement of social services are very slow," she said.

This content (The Bahraini Arab world is about to implement austerity measures on Thursday, 29 November 2018) Moved the search engine "Egypt 24" and was transferred as a source (Sunrise) and does not reflect the site and release policy. The original publisher is the sun gate .


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