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Iraq gets new government amid fiscal, coronavirus crises
By Maya Gebeily
Baghdad (AFP) May 7, 2020

Pompeo welcomes new Iraq government, extends Iran sanctions waiver
Washington (AFP) May 7, 2020 - US Secretary of State Mike Pompeo on Wednesday welcomed Iraq's formation of a government after months of instability, and extended a waiver on Iran sanctions to ease pressure on the new leader.

In a phone call with Prime Minister Mustafa Kadhemi, Pompeo congratulated him on taking office and discussed "working together to provide the Iraqi people the prosperity and security they deserve," the State Department said.

Pompeo said that United States would not enforce sanctions on Iraq buying electricity from Iran for 120 days "as a display of our desire to help provide the right conditions for success," a statement said.

Kadhemi took over Thursday Baghdad time after winning parliamentary approval for his cabinet line-up -- the third attempt to replace Adel Abdel Mahdi, who resigned last year in the face of nationwide demonstrations against corruption.

Iraqi politicians have the delicate task of balancing relations with Washington and neighboring Iran, which has deep economic and religious ties with Iraq but is under sweeping sanctions imposed by President Donald Trump.

Recognizing Iraq's fragility, the Trump administration has given Iraq a series of waivers on US sanctions to let it keep buying gas from Iran.

The latest had been announced last week and was to run for only 30 days.

Mustafa Kadhemi took office as Iraq's premier early Thursday after breaking months of political deadlock, taking the reins amid a staggering economic crisis, a health pandemic and the spectre of renewed protests.

Observing social distancing to curb the spread of the coronavirus, lawmakers gathered at parliament in masks and gloves around 9:00 pm local time, but the vote was delayed for hours to make last-minute edits to ministerial posts.

Kadhemi soon received a congratulatory call from US Secretary of State Mike Pompeo, who announced a 120-day waiver extension on US sanctions to let Iraq buy gas from neighboring Iran.

The waiver is "a display of our desire to help provide the right conditions for success," the State Department said.

Kadhemi's nomination came after weeks of lobbying deeply divided political parties, including those close to neighbouring Iran who had been wary of his ties to the United States.

One hardline faction had accused Kadhemi of conspiring with Washington over the January drone strike that killed Iranian general Qasem Soleimani and Iraqi commander Abu Mahdi al-Muhandis outside Baghdad airport.

MPs approved 15 ministers out of a prospective 22-seat cabinet, with seven ministries -- including the key oil and foreign affairs positions -- still empty as political parties squabble over shares.

Kadhemi, the 53-year-old former head of the respected National Intelligence Service (INIS), was nominated by President Barham Saleh on April 9 -- the third attempt to replace outgoing premier Adel Abdel Mahdi.

Abdel Mahdi, 77, resigned late last year following months of protests decrying rampant corruption, unemployment and a political class seen as beholden to neighbouring Iran.

He became the first premier to step down since the 2003 US-led invasion that toppled dictator Saddam Hussein, but stayed on as caretaker PM in the absence of a successor.

- A partial government -

The new PM appeared to have brought Iran-aligned factions on board, with endorsements from both Soleimani's successor as Quds Force chief Ismail Qaani, and from Mohammed Kawtharani, the pointman on Iraqi affairs for powerful Iran-backed Lebanese movement Hezbollah.

The ministers who were approved included those for the sensitive portfolios of finance, interior, defence, health and electricity -- securing the majority that Kadhemi needed for his cabinet to be considered viable.

The new body is meant to hold early elections seen as an opportunity for a political reset for the country, but it will also face urgent policy priorities.

Iraq's GDP is set to shrink by 9.7 percent this year and poverty rates may double, making it the country's worst annual performance since 2003, the World Bank has warned.

The enormous deficit brought on by collapsing crude prices may force the cabinet to trim salaries for state workers, potentially sparking new anti-government rallies.

Meanwhile the coronavirus pandemic has killed more than 100 Iraqis, and the country's dilapidated health system is at risk of being overwhelmed by a spike in cases.

- In-house trouble -

Kadhemi will also have to resolve budget and oil disputes with the semi-autonomous Kurdish region in northern Iraq, and lead a strategic dialogue with the United States in June over economic and military ties.

In the phone call, Pompeo mentioned talks with Kadhemi and agreed on "working together to provide the Iraqi people the prosperity and security they deserve," the State Department said.

The new PM has pledged to strike a balance between competing allies Washington and Tehran, which have been at deepening loggerheads since the US reimposed tough sanctions on Iran in 2018.

The United States has also blamed Iran and its allies for a spate of rocket attacks on troops in Iraq that have killed US, British and Iraqi forces in recent months.

Just hours before parliament's vote, a new rocket attack -- the first since late March -- hit a military complex outside the Baghdad airport where US troops are based.

Iraq's parliament voted to oust all foreign forces, including some 5,200 US troops, after Soleimani's killing in January -- but the decision has yet to be implemented.

And remnants of the Islamic State group have apparently stepped up attacks in recent weeks, two years after the country declared the jihadists defeated.

In his overnight address to parliament, Kadhemi pledged to hold early elections and draft an emergency budget law.

But Kadhemi's challenges are not just external, said Renad Mansour, a researcher at the London-based Chatham House.

"Kadhemi will try to retain some level of independence from the political blocs as prime minister, but the biggest spoiler could be holdovers from Abdel Mahdi administration who will be wary of him," Mansour told AFP.

"It will be increasingly difficult to do the kind of horse-trading required to reach consensus in Iraq given the level of fragmentation in the political scene," he said.


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IRAQ WARS
Iraqis turn to sketches and songs to contain virus
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Bushy moustaches, thick Syrian accents, fistfights in 1930s Damascus and... medical masks? A parody of a popular Syrian television show is raising awareness on curbing the coronavirus outbreak in neighbouring Iraq. Artists in Iraq's southern port city of Basra have adapted the beloved characters of "Bab al-Hara" ("The Neighbourhood Gate") - a 10-season period drama watched across the Arab world - to convince their compatriots to take the pandemic seriously. In one skit, the show's main charac ... read more

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