Lebanon's Hariri begins tough job to form government

By Laila Bassam

BEIRUT (Reuters) - Lebanese Prime Minister-designate Saad al-Hariri began parliamentary consultations on Monday aiming to form a unity government with rivals including the Iranian-backed Hezbollah.

The main potential stumbling block facing U.S.-backed Hariri is a demand by pro-Syrian Shi'ite Hezbollah and its allies for veto power in cabinet, a senior political source close to the opposition told Reuters. Hariri has rejected the idea.

The Hariri-led "March 14" coalition rode to a surprise victory in the June 7 parliamentary election, winning 71 of 128 seats in the chamber, dealing a blow to an opposition which was hoping to gain the upper hand in Lebanon's political landscape.

"The opposition interprets real participation as a third plus one (veto power) and this is the main obstacle against forming a government quickly and what may delay the formation," the senior source said.

Hezbollah and its allies have 11 of 30 seats in the outgoing cabinet, securing them effective veto power over its decisions.

After his talks, Hariri said the make-up of the next government had yet to emerge. "All forms are on the table. We expressed openness and they expressed openness," he said.

"We have an opportunity to open a new page to form a government of national unity ... so that we can try to get rid of this division in the country," he told reporters.

Sunni Muslim Hariri, strongly backed by Saudi Arabia, has been keen on securing the backing of his powerful Shi'ite rivals, who are close allies of neighboring Syria, to ensure a smooth launch for his administration.

Immediately after the election, he called for the contentious issue of disarming Hezbollah to be shelved. The group, labeled a terrorist organization by the United States, fought Israel in a 34-day war in 2006.

UNITY GOVERNMENT

Mohammad Raad, leader of Hezbollah's parliamentary bloc, said after meeting Hariri the country desperately needed "a unity government and real participation."

In Damascus, the Syrian News Agency said President Bashar al-Assad met Saudi Prince Abdel Aziz bin Abdullah and discussed Lebanon. The statement did not give details on when the meeting took place, but sources in Damascus said it was on Sunday.

Improved ties between Riyadh and Damascus are credited with helping calm the political arena in Lebanon, which was pushed to the brink of civil war last year when tensions erupted into fighting between supporters of rival politicians.

Continued cooperation between the two capitals is seen vital for Lebanon's stability.

While a Qatari-sponsored deal in May, 2008 defused Lebanon's worst crisis since the 1975-90 civil war, sectarian tensions rose again in the run-up to the election.