Domestic politics to test Kuwait's crown prince in push for fiscal reform

* Sheikh Meshal al-Ahmad al-Sabah named crown prince in 2020

* Emir temporarily handed him most of his duties on Nov.15

* Kuwait is focusing on recovering from COVID-19 downturn

By Ahmed Hagagy and Ghaida Ghantous

KUWAIT, Nov 29 (Reuters) - The biggest task facing Kuwait's octogenarian crown prince after unexpectedly stepping in for the emir this month will be to tackle the perennial political feuding which has long blocked badly needed fiscal reform in the wealthy oil producer.

Previously a low-profile figure who avoided public politics, little was known about Sheikh Meshal al-Ahmad al-Sabah, 81, who was security chief and then deputy of the National Guard before being named crown prince by his half-brother the emir in 2020.

On Nov. 15, he was moved further into the spotlight when a frail-looking emir temporarily handed him most of his duties as Kuwait focuses on recovering from a coronavirus downturn, though higher oil prices have eased pressure on finances.

Before the handover, the emir undertook https://www.reuters.com/world/middle-east/kuwaiti-dissidents-return-home-after-emirs-pardon-2021-11-15 conciliatory moves to defuse a standoff between government and the elected parliament that paralysed legislative work with only one regular session proceeding this year to approve the state budget.

"Kuwait needs to address its fiscal situation. I think the focus really will be getting the house in order financially," said Courtney Freer, fellow at Atlanta's Emory University.

This may prove difficult given Sheikh Meshal https://www.reuters.com/article/kuwait-crownprince-mesha-ewsmaker-idINKBN26S1B7 never held a ministerial post, she said, including that of premier who deals with the Gulf's liveliest and most powerful legislature.

The government has sought palliative measures to temporarily boost finances while more structural and fiscal reforms remain deadlocked, including a debt law to tap international markets.

Successive parliaments have also resisted efforts to introduce new taxes, including value-added tax, and to reform a lavish cradle-to-grave welfare system for Kuwaitis, who account for less than a third of the state's 4.6 million population.

The crown prince last week reappointed Prime Minister https://www.reuters.com/world/middle-east/kuwait-emir-reappoints-sheikh-sabah-al-khalid-pm-state-news-agency-2021-11-23 Sheikh Sabah al-Khalid and tasked him with forming a new cabinet, the third this year under the standoff in which members of parliament wanted to question the premier on various issues. Sheikh Meshal also met opposition lawmakers.