Libya's Subdivisions (Source: Fragile States Resource Center)
The recent announcement was certainly a blow to the centralized leadership in Tripoli, but reading the events carefully helps add details to the story. Proponents would like the return of the three-state Libya, last extant under King Irdis in 1951, and one that existed, at times, throughout Libya's history. Although this certainly could lead to a break-up of the country, leaders from the region did not explicitly declare independence, or even self-determination. Leaders seem to be seeking a status closer to the experience of the Kurdish region of Iraq following the Iraq War (though even that status is still debated).
Much like in Iraq, it may boil down to natural resources, regional access, and service delivery. The eastern shadow government is offering up oil to foreign buyers and is promising to open the region's energy resources under its own terms. The central government, meanwhile, has indicated that it will use force, if necessary, to prevent any circumvention of its authority. It has already fired toward a Maltese tanker in order to force it to deviate from an eastern port. Meanwhile, regional access and governmental service delivery are both hampered by protests and a burgeoning insurgency that has blocked off the region for months. These issues sound familiar and are a formula for bigger problems.
Infighting, and possibly even open warfare, will continue to be a risk unless the structure of Libya indicates more clearly how the central government will work with regional authorities. While levels of autonomy are integral to regional function in a territory as large as Libya, it is important that those levels are determined wisely and with both sides in agreement. Nonetheless, all sides must recognize that central governance, to some extent, is necessary.
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