EU says Iraqi govt will boost economic reconstruction

The European Union today welcomed the formation of a national unity government in Iraq and said it would boost efforts to establish a democracy and rebuild the country’s shattered economy.

In a statement issued in Vienna by Austria, which holds the EU’s rotating presidency, the 25-nation bloc said it “firmly believes that the formation of this government of national unity … will contribute significantly to the political and economic reconstruction of Iraq in a spirit of reconciliation by promoting inclusiveness and anti-sectarian policies”.

“This will represent another important step towards national consensus and will contribute to the stabilisation of the country and its further integration into the international community,” the EU said.

“The European Union conveys to the newly-formed government its best wishes for success in view of the challenges ahead,” it said, adding that the bloc “reaffirms its commitment to assist in building an independent, secure, stable, unified, democratic and prosperous Iraq”.

The EU said it hoped the new Iraqi government would ensure the “swift subsequent confirmation” of heads for the key defence and interior ministries.

The EU’s executive commission said it would soon step up its presence in Baghdad following the formation of the new government and allocate 200 million euros (£136million) to support the reconstruction of Iraq in 2006.

It also said it expected to launch negotiations on a new trade and co-operation agreement with Iraq in the near future.

“We hope this is a government that can be a force to end sectarian violence and bring stability” to Iraq, said EU spokeswoman Emma Udwin. “The Iraqis will not be working on their own in that endeavour.”