President Abdrabuh Mansur Hadi is to replace Yemen's unity government and cut a controversial fuel price hike, two demands of Shiite Huthi rebels, in an initiative announced today.
Faced with increased pressure from the Huthis and a deepening political crisis, "the president has agreed to go ahead with the initiative and form a new national unity government," Hadi's media advisor Fares Saqqaf told AFP.
Hadi will "assign within a week" a new prime minister to form a "national unity government", according to the text of the proposal published on the official Saba news agency.
The president himself will name the defence, interior, foreign and finance ministers in the cabinet that will also include Huthis and members of the separatist Southern Movement.
And a controversial hike in fuel prices implemented in July will also be "reviewed" downwards by around 30 per cent.
Saba said the proposal was approved at a meeting of pro-government political parties that was chaired by Hadi.
"We hope the Huthis will take part in this process, but, in any case, the president will go ahead in implementing these points that are widely backed by Yemenis," Saqqaf said.
The initiative comes after Zaidi Shiite rebel leader Abdulmalik al-Huthi on Sunday urged supporters to press on with a campaign in Sanaa to oust the government.
Zaidi armed fighters have been camped around Sanaa for the past two weeks and held protests almost throughout August to press for the government's resignation, accusing it of corruption.
