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HTS to ‘shrink the state’ through privatization and civil servant sackings

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Syria’s new Islamist leaders are embarking on a radical overhaul of the country’s economy, including plans to sack a third of public sector workers and privatize state-owned companies that dominated under the Baath Party and the Assad’s.

The first sackings began just weeks after the ouster of Bashar al-Assad on December 8, while the pace of the announced crackdown “against waste and corruption” has triggered protests by government employees, including fears of a “sectarian purge of jobs,” Reuters reported by Riham Alkousaa.

Reuters spoke to five ministers in the interim government formed by Hayat Tahrir al-Sham (HTS), all of whom described the broad scope of plans to “downsize the state.” They said this included the elimination of a large number of “ghost employees” (people who allegedly received salaries for doing little or nothing under Assad).

Reuters lends support to the sectarian narrative, arguing that under Hafez and Bashar al-Assad, Syria was organized as a “militarized, state-led economy that favored an inner circle of allies and family members, with members of the Alawite sect of the family heavily represented in the public sector.”

107 state-owned companies to be divested

HTS’s economy minister, 40-year-old former energy engineer Basil Abdel Hanan, told Reuters that there was a major shift towards a “competitive free market economy.”

The government under “interim president” Abu Mohammed al-Jolani (Ahmed al-Shara) will work to privatize state-owned industrial companies, which Hanan said total 107, most of which are loss-making.

Hanan promised to keep “strategic” energy and transport assets in public hands but did not name the companies to be sold. Syria’s main industries include oil, cement, and steel.

Finance Minister Mohammad Abazeed said in an interview that some state-owned companies existed only to embezzle funds and would be closed down. Abazeed said, “We expected corruption, but not this much.”

Half of the civil servants may be sacked

Abazeed said that based on a preliminary examination, only 900,000 of the 1.3 million people on the state payroll actually showed up for work.

“That means there are 400,000 ghost names. Eliminating them would save considerable resources,” Mr. Abazeed said.

Administrative Development Minister Mohammad Alskaf, who oversees public sector staffing, went further, telling Reuters that the state would need between 550,000 and 600,000 employees, less than half the current number.

Abazeed said that the reforms, which also aim to grant amnesty for penalties and simplify the tax system, aim to remove obstacles and encourage investors to return to Syria.

HTS’s goal is familiar: Reduce bureaucracy, boost exports

“So factories inside the country can serve as a launching pad for global exports,” said Abazeed, who was an economist at Al-Shamal private university before serving as a treasury official in the HTS stronghold of Idlib in 2023.

Since 2017, HTS has been attracting investment and the private sector in Idlib “with less bureaucracy and pressure on hardline religious groups,” according to Reuters.

The new government hopes for a nationwide increase in foreign and domestic investment to create new jobs as Syria rebuilds after 14 years of conflict, three ministers told Reuters.

However, for HTS to replicate the “Idlib model,” it will have to overcome a wide range of challenges, notably international sanctions that severely hamper foreign trade.

The question of the legitimacy of al-Jolani’s government could be raised

Maha Katta, Resilience and Crisis Response Specialist for Arab Countries at the International Labour Organisation, said the economy is currently not in a position to create enough private jobs.

Katta said, “I’m not sure it’s really a wise decision,” adding that restructuring the public sector “makes sense” but questioning whether it should be a top priority for a government that needs to revive the economy first.

While recognizing the imperative for interim leaders to act quickly to get the country under control, some critics see the scale and pace of the planned changes as overreaching.

Aron Lund of the Middle East-focused think tank Century International said, “They talk about a transition, but they are making decisions as if they were a legitimately constituted government.”

Islamist government to administer neoliberal ‘shock therapy’

Economy Minister Hanan said economic policy would be designed to manage the consequences of rapid market reforms to avoid the chaos of recession and unemployment that followed the “shock therapy” imposed on post-Soviet countries in Europe in the 1990s.

Mr. Hanan said, “The aim is to balance private sector growth with support for the most vulnerable.”

The government has announced a 400% increase in civil servant salaries, currently around $25 a month, starting in February. It is also mitigating the impact of layoffs through severance pay or by asking some workers to stay at home while needs are assessed.

Hussein El Khatib, Director of Health Facilities at the Ministry of Health said, “We are saying to the employees who are hired just to get a salary: please take your salary and sit at home, but let us do our job.”

Discontent Among Public Laborers Grows

But discontent among workers is growing. Workers have been showing Reuters lists circulating in the labor and trade ministries, which have scaled back Assad-era employment programs for former soldiers who fought alongside the government in the war.

One of these veterans, Mohammed, told Reuters he was dismissed from his data entry job at the labor ministry on January 23 and given three months’ paid leave. Mohammed said 80 other former fighters had received the same notice, which he shared with Reuters.

Responding to questions from Reuters, the labor ministry said that “due to administrative inefficiencies and implicit unemployment” some employees had been placed on three months’ paid leave to assess their work situation, after which their status would be reviewed.

The plans sparked protests in January in cities such as Daraa in southern Syria and Latakia on the coast.

Daraa Health Directorate employees carried banners reading “No to arbitrary and unjust dismissals” during a demonstration attended by dozens of people.

Demonstrator Adham Abu Al-Alaya said he fears losing his job. He says he supports the elimination of ghost labor but rejects the allegation that he or his colleagues are being paid for doing nothing. He was hired in 2016 to manage records and pay bills.

Abu Al-Alaya said, “My salary helps me meet my basic needs, such as bread and yogurt,” adding that he also works another job to make ends meet.

He said, “If this decision is implemented, unemployment will increase across society, which is something we cannot afford.”

Middle East

US envoy says Syria interim leader Sharaa seeks Israel normalization

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US Ambassador to Türkiye and Special Envoy for Syria Tom Barrack stated that Syria’s interim president, Ahmed al-Sharaa, wants to normalize relations with Israel.

At the same time, he called for an end to Israel’s military operations in Syria and questioned whether Washington should intervene to halt them.

Speaking at the Global Security Forum held in Doha, Qatar, Barrack said Sharaa had managed difficult circumstances well and was trying to reassure Israel that his government poses no threat.

“I think President Sharaa has done a very good job under very difficult circumstances,” Barrack said, describing the message he believes the Syrian leader is conveying to Israel: “I am not aggressive, I have no problem with Israel, I want relations with Israel to normalize.”

Barrack also urged Israel to stop its operations in Syria, while voicing uncertainty over whether the US should step in to end them:

“It’s time to stop this [Israel’s actions in Syria]. I don’t know if it’s time for the US to intervene to stop it.”

Israel intensified its military operations in Syria following the overthrow of Bashar al-Assad on 8 December 2024. Israeli forces entered the demilitarized “buffer zone” along the Golan Heights and took up positions on the Syrian side of Mount Hermon (Jabal al-Shaykh), with Israel describing the deployment as a temporary security measure.

Israeli air strikes have also targeted military facilities and weapons depots across the country.

Barrack pointed to Syria’s political transition as an example of how groups once viewed as adversaries could be incorporated into new political and security structures.

“You can take Nusra, which was once designated a foreign terrorist organization; following the transformation that took place on December 8, many people today evaluate this example as ‘here is a model,'” the US diplomat said.

The Nusra Front was a jihadist group that emerged during the Syrian civil war and, after pledging allegiance to al-Qaeda, announced its departure from the network. The organization was designated as “terrorist” by several countries and bodies, primarily the US and the UN.

The group’s leader, Ahmed al-Sharaa (Abu Mohammad al-Julani), subsequently headed Hayat Tahrir al-Sham (HTS), which led the offensive that ousted Assad.

Barrack also highlighted the integration of the Syrian Democratic Forces (SDF) into the Syrian national army as an outcome many had previously considered unlikely.

“Nobody thought you could reintegrate this Kurdish entity, the SDF, into a national army, but it happened,” the US official said.

Damascus and the Kurdish-led forces signed an agreement on 10 March 2025 to integrate the SDF’s military and civilian institutions into the Syrian state.

However, delays occurred in the implementation of the agreement due to disputes over integration terms and the future of self-administration in the region.

Barrack nevertheless expressed doubts about the effectiveness of earlier US interventions in the Middle East, citing Washington’s involvement in what he characterized as “23 regime changes” across the wider region.

“Whenever we have tried to intervene, to change a person or a regime, it seems to have been a mistake,” Barrack said, while also questioning the value of US intervention in Yemen, describing it as apparently “senseless.”

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US and Israel weigh Iran strikes after midterm vote, reports say

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The US and Israeli defence ministries have drawn up plans for a fresh assault on Iran, with the envisioned offensive under consideration to launch after the US Congressional midterm elections on 3 November.

Citing sources, The New York Times reported that the blueprint anticipates a brief but intense campaign.

As military units step up their drills, US Defence Secretary Pete Hegseth discussed prospective strike options with Israeli Prime Minister Benjamin Netanyahu.

The list of targets encompasses Iran’s nuclear sites, its energy infrastructure, and its arsenals of missiles and unmanned aerial vehicles.

Several officials who spoke to the newspaper argued that a new wave of attacks could deal a heavy blow to the Iranian economy, forcing the leadership in Tehran into concessions.

Conversely, other sources doubt whether a resumption of fighting would prove any more successful than the earlier campaign conducted between February and April.

That previous offensive drove energy prices higher and drained US stockpiles of interceptor missiles.

It remains unclear whether US President Donald Trump will authorise the operation.

Domestic political calculations in Israel could also influence the trajectory of the plans, given that the country faces general elections on 27 October.

While some experts speaking to the newspaper contended that Netanyahu could leverage the threat of war to form a national unity government, others pointed to the opposition’s distrust of the prime minister.

Washington fears regional spillover

The US administration also harbours concerns that the fighting could engulf the wider region. On Wednesday, the US State Department ordered non-essential government personnel and their family members to leave Saudi Arabia following attacks by the Iran-backed Houthis.

A US military build-up, comprising three aircraft carriers, fighter aircraft, and special forces units, is slated to be fully deployed to the region by early November.

The targets under review include the deep underground nuclear facility code-named “Pickaxe”. Trump suggested that the high-yield GBU-43/B bomb, known as the “mother of all bombs”, could be deployed against the site, though experts doubt whether the ordnance can destroy a complex buried so deeply.

For its part, Tehran is preparing for a potential escalation, threatening to broaden its target list. Retaliatory options under consideration by Iran reportedly include data centres and subsea internet cables, in addition to shipping and energy facilities.

Mehdi Mohammadi, an adviser to an Iranian negotiator, dismissed US hopes of wrapping up a new campaign within 72 hours as a “fantasy”. Mohammadi warned that Tehran’s response would be more severe and unpredictable.

The Financial Times previously reported that an Israeli strike on Iran set for 10 October had been called off because the US president was unwilling to risk a broader conflict ahead of the Congressional midterms.

According to that report, the Israeli military had prepared a multi-day assault on nuclear sites, Iranian government targets, power plants, and civilian infrastructure on Netanyahu’s orders. The strikes had been designed to exceed the intensity of the campaign begun in February.

Washington seeks to secure an agreement from Tehran covering both the Strait of Hormuz and its nuclear programme.

“It will either be a deal or a strike,” one source told the Financial Times, adding that an operation could get under way in the coming weeks.

Another official who spoke to the paper suggested that Israeli preparations might serve as leverage to squeeze Iran in negotiations.

Axios also reported that the Pentagon had issued orders to prepare for renewed strikes, though the directive contained no specific date and Trump has yet to take a final decision.

The US and Israel launched their offensive against Iran on 28 February. Iran hit back by targeting US and Israeli assets across the region and curbing vessel transit through the Strait of Hormuz.

Although both sides signed a memorandum of understanding in June that provided for a ceasefire and talks to lift the blockade in the Strait of Hormuz, reciprocal attacks between the US and Iran have persisted.

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Netanyahu trails Eisenkot in Israeli polls despite Trump backing

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As general elections scheduled for 27 October approach in Israel, the opposition camp led by former Chief of Staff Gadi Eisenkot continues to lead Prime Minister Benjamin Netanyahu in public opinion polls.

Survey data published in the Israeli press on 19 and 20 October reveal that the governing coalition has failed to catch the opposition, despite explicit backing from US President Donald Trump.

However, the current distribution of votes documents that neither wing can reach a governing majority on its own.

Neither bloc reaches the 61 seats needed to form a government

According to a survey conducted by Channel 13, if an election were held today, Eisenkot’s bloc would win 51 seats, while the Netanyahu coalition would take 50.

A Channel 12 poll indicates that the gap has widened slightly, projecting 55 seats for Eisenkot’s alliance and 51 for the governing bloc. A minimum of 61 seats is required to form a government in the Knesset, Israel’s 120-seat parliament.

A key factor deadlocking the political arithmetic is the refusal by both sides to form a coalition with parties representing Palestinian citizens of Israel. This stance stands as the most tangible obstacle to securing a parliamentary majority after the election.

Channel 12 data shows that overall voter turnout is expected to remain at 72%. The inclination to head to the ballot box climbs to 81% among opposition voters, compared with 74% measured among Netanyahu supporters.

The same poll notes that Eisenkot has widened his lead over Netanyahu by two further points in prime ministerial preferences.

Yashar party climbs after Gantz bows out

A survey published on the Walla news site shows that the balance shifted after Benny Gantz decided to withdraw his Blue and White party from the race. Following that move, Eisenkot’s Yashar party increased its projected tally to 23 seats, while Netanyahu’s Likud dropped by one seat to 19.

Eisenkot’s party and the “Zionist Opposition” bloc it anchors have remained atop the polls for several months.

In an earlier message of support, Trump praised Netanyahu as “a great fighting prime minister and an even greater partner for peace.” Public opinion polls document that this diplomatic and political backing has not proved sufficient to tip the preferences of the Israeli electorate in favour of the incumbent government.

Support for Ben Gvir rises among young voters

Although Netanyahu’s alliance trails in overall strength, far-right figures within the coalition appear to be expanding their grassroots base. Gauged interest in the Jewish Power party of Israeli National Security Minister Itamar Ben Gvir is climbing, particularly among younger voters.

Speaking to a study conducted by Agam Labs, affiliated with the Hebrew University of Jerusalem, an 18-year-old student described his shifting preference: “I used to think he was a bit crazy, but then I actually looked at what he was saying, and it all made sense.”

Another Israeli citizen stated that Ben Gvir’s push to arm West Bank settlers gave them “room to breathe.”

Ben Gvir is known for leading settler incursions into the Al-Aqsa compound and distributing military-grade rifles to tens of thousands of settlers since 7 October 2023.

Criticized for escalating violence against Palestinians, Ben Gvir has called for starving Gaza, maintaining military operations in Lebanon, and bombing Beirut. The far-right minister’s militaristic stances also find a political constituency across several opposition parties in Israel.

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