Southern Transitional Council (STC) leader Aidarous al-Zubaidi on Tuesday accused the internationally recognized Yemeni government, of which the STC is a part, of "incompetence and failure," hinting at a potential withdrawal from the Presidential Leadership Council and the government.

During a meeting with STC officials, including ministers in the government, al-Zubaidi expressed his dissatisfaction with the current situation, stating that "the continuation of the status quo is no longer acceptable." He attributed the deteriorating living conditions and economic crisis to the government's failures, claiming that the STC's participation in the government was based on a desire to unite efforts against the Houthi rebels.

However, al-Zubaidi emphasized that the "deterioration of living conditions to this level necessitates that the Council reconsider all its decisions and future steps, in a way that serves the interests of the people of the south and their national cause."

The STC, a key component of the Presidential Leadership Council, holds several ministerial positions and has controlled the interim capital Aden since September 2019. The city, along with other regions, has been grappling with a severe economic downturn, marked by soaring prices and a plummeting currency, significantly impacting the lives of citizens.

The economic crisis has also affected essential services, particularly electricity, which has been experiencing frequent and prolonged outages, adding pressure on both the government and the STC.

The Yemeni economy has been heavily impacted by the Houthi rebels' targeting of oil export ports in late 2022, exacerbating the economic situation.

A UN Security Council expert panel report in 2023 confirmed that a "comprehensive economic war has replaced the comprehensive military war" in Yemen. The report highlighted the complex interplay between the country's economic problems and the political and military landscape.

The panel accused the Houthis of implementing a "calculated set of coercive economic measures" targeting maritime, land, and air sectors to cripple the Yemeni government's operations. The report also expressed concern over the instability of Yemen's currency and economy due to the Houthis' continued ban on certain banknotes issued by the Central Bank of Yemen in Aden, the potential use of counterfeit banknotes and passports, and ongoing disputes between the two central banks regarding regulatory issues.

Al-Zubaidi's statement and the ongoing economic crisis raise concerns about the future of the Yemeni government and the potential for further instability in the war-torn country.