Saad Hariri
Saad HaririIsrael news photo: U.S. State department

Lebanese Prime Minister-designate Saad Hariri stepped down Thursday after failing to create a unity government that would include the pro-Syrian opposition led by Hizbullah. Lebanese President Michel Suleiman is now facing the task of naming a new PM-designate, who will attempt to succeed where Hariri failed.

"I declare to all Lebanese that today I told President Suleiman that I will step down... I hope this decision will benefit Lebanon,” Hariri announced Thursday afternoon.

On Monday, Hariri submitted a proposed coalition agreement that would have given Hizbullah and its allies control over one-third of the government ministries. The pro-Syrian terrorist group already has veto power over cabinet decisions.

However, the Hizbullah-led opposition rejected the proposal, in which Hariri selected candidates for each post himself. Opposition leaders insisted that they be allowed to select their own ministers.

In particular, the Free Patriotic Movement, a Hizbullah ally, insisted on being allowed to select party head Michel Aoun's son-in-law as the Minister of Telecommunications. The opposition sees the ministry as having strategic value. The Hizbullah-led opposition also demanded control of the Energy Ministry.

Hariri accused the opposition of deliberately undermining attempts to form a government after losing the election. He expressed regret over the failure to assemble a unity government, describing his rejected offers as a “real opportunity” for unity.