Libya Rivals Unveil $30B Budget to Halt Economic Collapse

Libya’s competing legislative bodies have reached a landmark agreement to split a 190 billion dinar, approximately 30 billion dollar, national budget, marking the first such fiscal cooperation in over a decade. The deal, brokered with United States support, signals a shift in the political landscape 15 years after the collapse of the Muammar Gaddafi regime.

The agreement follows years of institutional fragmentation that saw the country split between eastern and western administrations. While the front lines between rival militias have remained largely static since the 2020 ceasefire, the joint budget serves as a mechanism to incentivize cooperation between the Tripoli-based Government of National Unity and the eastern-aligned parliament. In April, military personnel from both factions participated in joint training exercises in Sirte, further indicating a cooling of direct hostilities.

Despite these diplomatic overtures, internal stability remains fragile. Recent months have seen a rise in targeted assassinations of high-ranking security officials within both camps, suggesting that violence has shifted from inter-factional warfare to internal power struggles. While major political actors continue to publicly advocate for national elections, disputes over candidate eligibility and the legal framework for a ballot persist, leaving the long-term transition to a unified government uncertain.