Hariri

BEIRUT, Lebanon (CNN) -- Lebanon's acting prime minister has refused to lead the country's new government, creating a political crisis at a delicate time in Lebanon's recovery.

Rafik Hariri, who has served as prime minister for the last six years, said Monday he is withdrawing his name from consideration for the post, even though he maintains majority support in parliament.

He accused new President Emile Lahoud of overstepping his authority last week, when he consulted with all 128 members of the legislature to gauge the level of support for Hariri.

Hariri said Lahoud's consultations violated articles of constitutional law.

"Playing with articles as if you are playing with fire -- this is why I have taken a very hard position," Hariri told CNN. "Nobody has the authority to do so. I want to be a prime minister, but not a prime minister at any price."

But Lebanese politicians said the primary stumbling block was a dispute between Hariri and Lahoud over who will run the country.

Hariri, a 54-year-old billionaire, essentially had a free hand in running Lebanon under former President Elias Hrawi.

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CNN's Brent Sadler reports from Beirut
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Lahoud, a 62-year-old army commander, wants to strengthen his authority and has vowed to root out corruption from the government.

Lahoud has accepted Hariri's refusal and plans to discuss new candidates with members of Parliament on Tuesday, said a statement from the presidency.

Allies of Hariri's rival, Parliament Speaker Nabih Berri, said they will name former Prime Minister Selim al-Hoss as their candidate for the post. Hoss held the job several times during Lebanon's civil war, most recently in 1990.

Hariri's unexpected departure has worried economists, who fear it could destabilize Lebanon's currency. Hariri is credited with helping rebuild the nation after 15 years of civil war. His appointment in 1992 boosted the Lebanese pound and helped Lebanon become the first Middle East country to tap the international debt market.

Lahoud

"A government without Hariri opens a whole can of worms because there is no obvious alternative," said one economist. "He has inspired confidence in foreigners and locals."

Some political observers say a political tug-of-war now can only hurt Lebanon's recovery.

"In Lebanon in general, there isn't a desire for a big showdown," said Paul Salem, a political studies professor at the American University of Beirut. "Syria doesn't desire a big showdown over this, nor do the Western powers who invested a lot politically and financially in Lebanon."

Syria is the dominant power in Lebanon, with some 35,000 troops within its borders. Syrian President Hafez Assad gave overwhelming support to Lahoud and could still intervene to mend the political divide.

Beirut Bureau Chief Brent Sadler, The Associated Press and Reuters contributed to this report.