Iraqi prime minister faces further setback forming government

Adel Abdul Mahdi, center, attends a recent parliamentary session. (AFP)
Updated 26 November 2018
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Iraqi prime minister faces further setback forming government

  • The PM will present his candidates on Monday
  • An attempt to fill the eight remaining ministries earlier this month was postponed

BAGHDAD: Iraqi Prime Minister Adel Abdul Mahdi will present his candidates for eight ministerial positions Monday but the key positions related to security have still not been resolved.

The nominations come after a month of tough negotiations and serious disagreements over candidates for the Interior and Defense ministries, negotiators told Arab News.

Abdul Mahdi, who took office last month, was chosen as the result of a political compromise between the rival two largest parliamentary coalitions.

The Reform alliance led by the influential cleric Moqtada Al-Sadr is vying for influence against the Iran-backed Al-Binna’a, a coalition led by Hadi Al-Amiri. Al-Amiri is the head of Badr Organization, a powerful Shiite armed faction.

An attempt to fill the eight remaining ministries earlier this month was postponed after the two alliances were locked in disagreement.

Negotiators said this time the two sides had reached agreement on six ministers but interior and defense would probably remain empty.

“As long as we can’t agree on all the candidates, let’s go with what we have so far,” a key Reform negotiator told Arab News.

“Both alliances have agreed on the candidates of six ministries, so we will delay the vote on the candidates of interior and defense until further notice,”.

The vacant ministries to be occupied on Monday are justice, culture, education, higher education, immigration and planning. Abdul Mahdi’s nominations for interior and defense will not have the required backing. 

Maj. Gen. Faisal Fener, a former commander of Saddam Hussein’s private jet squadron, had been backed by Amiri and his allies to be the next defense minister. 

But Fener was finally ruled out from the position because of laws against former members of Saddam’s Ba’ath party holding government positions. In particular, he was sanctioned “for his involvement in the 1991 oppression of the Shiite-led uprising against Saddam,” negotiators said.

Faleh Al-Fayad, a former national security adviser — also backed by Amiri — is still the sole candidate for the Interior Ministry.

One of Sadr’s main negotiators said Fener had been “excluded by the law, not by us.” The negotiator said no deal had been reached between the two factions on Fayad. 

“From the beginning we made an agreement with the leadership of Al-Binna’a suggesting that the candidates to occupy the interior and defense should be independent and have nothing to do with the political parties, but they have been insisting to nominate Fayad.

“We have nothing against him but he is not independent.”

The formation of Iraq’s government has been painfully slow since elections in May. 

The US, which backs Reform, and Iran, have been pushing for their allies to gain the biggest influence in the new government, particularly in the security ministries.

Iraq has been a battleground for the US and Iran since the 2003 invasion that toppled Saddam.

Iran has gained increasing influence in the country by controlling the officials who run the the Interior Ministry and Fayad is no exception. He is seen by most Iraqi parties as Tehran’s man.

He was also the head of the umbrella organization overseeing Shiite paramilitary troops, which fought Daesh alongside the government from 2014.

Fayad was one of the main allies of former prime minister Haider Al-Abadi. But he turned against him and allied with Amiri during the negotiations to form the government.

An Al-Binna’a negotiator said they had little option other than to nominate Fayad because they have no other option and he is backed by the powerful Iranian General Qassim Soleimani who oversees Tehran’s involvement in Iraq and other countries in the region.

“He is the candidate of Soleimani so we can’t withdraw his nomination,” the negotiator said, adding that Soleiman is trying to reward him after he lost his previous positions due to falling out with Abadi.


Turkiye to forge on with tight economic policy, some fine-tuning, VP Yilmaz says

Updated 57 min 50 sec ago
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Turkiye to forge on with tight economic policy, some fine-tuning, VP Yilmaz says

  • The central ‍bank forecasts inflation between 13-19 percent by end-2026

ISTANBUL: Turkiye is committed to carrying on its tight economic policies ​in order to cool inflation, and though it may fine-tune the program it will not change course, Vice President Cevdet Yilmaz said in comments embargoed to Friday.
“There is no plan to pause our program,” Yilmaz said at a briefing with reporters in Istanbul on Thursday. “All programs are dynamic, and adjustments can always be made.”
Yilmaz, who plays a key role overseeing economic policy at the presidency, said any such adjustments would aim to support production, investment and ‌exports while moderating consumption.
Turkiye ‌has pursued tight monetary and fiscal policies ‌for more ⁠than ​two years ‌in order to reduce price pressure, leading to high financing and borrowing costs that have weighed on businesses and households. Inflation has eased slowly but steadily over the last year but remains elevated at 31 percent annually.
Last month, Is Bank CEO Hakan Aran warned that focusing solely on one target — inflation — could create side effects, suggesting a “pause and restart” might be healthy once the program achieves certain targets.
Yılmaz said the ⁠government expects improvements in inflation in the first quarter, which should reflect to market expectations for year-end ‌inflation around 23 percent. The government projects inflation to dip ‍as far as 16 percent by year end, ‍within a 13-19 percent range, and falling to 9 percent in 2027. The central ‍bank forecasts inflation between 13-19 percent by end-2026.
Yilmaz noted inflation fell by nearly 45 points despite pressure from elevated food prices, hit by agricultural frost and drought.
The agricultural sector is expected to support growth and help ease price rises this year, which could ​help achieve official inflation targets, he said.
Yilmaz said the government wants to avoid a rapid drop in inflation that could hurt economic ⁠growth, jobs and social stability.
Turkiye’s economic program was established in 2023 after years of unorthodox easy money that aimed to stoke growth but that sent inflation soaring and the lira plunging. The program aims to dislodge high inflation expectations while boosting production and exports, in order to address long-standing current account deficits.
The central bank, having raised interest rates as high as 50 percent in 2024, eased policy through most of last year, bringing the key rate down to 38 percent.
Asked whether lower rates could trigger an exit from the lira currency, Yilmaz said: “What matters is real interest rates. Lowering rates as inflation falls does not affect real rates, so we do ‌not expect such an impact.”
He added that the government will strengthen mechanisms that selectively support companies while improving overall financial conditions.