Kuwait’s government has resigned, less than four months after being appointed, as it tries to out-maneuver lawmakers seeking to pass legislation ministers say would strain state finances.
(Bloomberg) — Kuwait’s government has resigned, less than four months after being appointed, as it tries to out-maneuver lawmakers seeking to pass legislation ministers say would strain state finances.
The prime minister submitted the resignation to the crown prince, citing tense relations with the National Assembly, state-run news agency KUNA reported Monday.
One of the disputed bills included a proposal for the government to buy billions of dinars worth of citizens’ consumer loans. Ministers have rebuffed this and other ideas, such as raising government spending on salaries and other benefits, as the OPEC member state reaps the profits of buoyant crude prices.
Relations between the elected parliament and the government installed by the ruling Al-Sabah family have soured to the point where ministers have walked out in protest. Kuwaiti politics has for years been gridlocked by similar disputes, deterring foreign investment, thwarting fiscal reform and hindering efforts to diversify the oil-reliant economy.
Prime Minister Sheikh Ahmad Nawaf Al-Sabah, the eldest son of Kuwait’s ailing ruler, was appointed in July, when he formed his first cabinet, which pledged to push through stalled economic legislation and restore political stability after years of turbulence. A second cabinet was formed in October, after parliamentary elections which saw opposition and conservative lawmakers gain ground.
Higher oil prices have allowed Kuwait to replenish the state treasury, which was almost entirely depleted some two years ago.
Read More: Oil Money Can’t Buy Progress for Gulf’s Laggard State Kuwait
Crown Prince Sheikh Meshal Al-Ahmad Al-Sabah — who was given more powers as Emir Sheikh Nawaf Al-Ahmed Al-Sabah largely withdrew from the public eye — warned last year that if the country was dragged deeper into political impasse, Kuwaitis would “face measures with serious consequences.” It’s unclear if the current deadlock could trigger such measures, which were never specified.
(Updates with reason for resignation in second paragraph.)
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