Lebanon finally has a new government but still no particular path out of its predicament. Prime Minister Hassan Diab , named his Cabinet on Jan. 22, but major hurdles remain, especially as the country's poor economy and security issues are unlikely to improve any time soon. Domestically, the new government must face down a persistent protest movement while avoiding blowback from the rivals it chose to exclude from power. And externally, the country is now facing potential sanctions and cuts in military aid from the United States, as well as likely diplomatic isolation at a time when its economy needs all the help it can get. Given such obstacles, it is unclear how long the new government will last. And more worryingly for the region, Lebanon's economic and political contagion could infect neighboring countries that rely on Beirut’s economic linkages, particularly Syria.