Libya Approves First Unified Budget in Over a Decade

Libya’s rival legislative bodies, the eastern-based House of Representatives and the Tripoli-based High Council of State, have approved a unified state budget for the first time since 2013. The Central Bank of Libya confirmed the agreement, describing it as a significant step toward restoring financial stability after years of political division and conflict. Governor Naji Issa highlighted the deal as proof that Libya can overcome internal rifts when a unified vision is established. This breakthrough occurs amidst entrenched political fragmentation, with forces loyal to Khalifa Haftar controlling key oil regions in the east. The agreement signals a shift from informal arrangements to formal institutional cooperation. Its timing coincides with Libya’s growing strategic importance in global energy markets, particularly for Europe, as disruptions in the Strait of Hormuz and the Israel-US war on Iran increase demand for Libyan crude. The country’s geographic advantage allows for quicker, safer oil shipments to European refineries compared to Gulf routes. While political divisions persist, this budget deal represents a rare moment of consensus between competing administrations, aiming to stabilize the nation’s economy and strengthen its position in the international energy sector.