Having had an election last September, the Kurds have been unable to form a new government and are STILL arguing over the coalition details. As the KDP have the biggest share of the vote both in this election and the one prior, they just keep running the show so for most part it is business as usual. One of the major sticking points is security as here both major political parties, KDP and PUK have standing and very substantial armed forces. Imagine the National and Labour parties having their own large armies. No way is the PUK going to hand over control of their armed forces, even though they are now third placed.
In the meantime next month are Iraqi wide elections, are unfortunately likely to trigger even more killing (2000 dead since New Year). The current government is Shiite and has been supported by the Kurdish parties. While the Kurds are all Sunni, they are very unlikely to back the Arab Sunni parties as these are the former supporters of their arch enemy Saddam Hussein and current backers of radical Islamic groups such as Al Qaeda.
The Kurds and the central government in Baghdad have a long running dispute over oil revenues and in January Baghdad cut off payments to the KRG (Kurdish Regional Government), claiming that the Kurds have long been selling oil directly to Turkey rather than through Baghdad. This of course is true, but for a very long time, everyone turned a blind eye to this trade.
Now the KRG has run out of money and as most people work for the government this has become critical and plunged the region into economic chaos.
As with everything here, withholding the oil payments has a political motive. The Shiite government is flexing its muscles to ensure Kurdish support during the April election and the possible formation of a new coalition. Meantime people are really having to be incredibly careful with money, causing spending to drop dramatically.
So far all is calm and trouble is unlike;y to erupt, but this is the ME and nothing is predictable.
In the meantime next month are Iraqi wide elections, are unfortunately likely to trigger even more killing (2000 dead since New Year). The current government is Shiite and has been supported by the Kurdish parties. While the Kurds are all Sunni, they are very unlikely to back the Arab Sunni parties as these are the former supporters of their arch enemy Saddam Hussein and current backers of radical Islamic groups such as Al Qaeda.
The Kurds and the central government in Baghdad have a long running dispute over oil revenues and in January Baghdad cut off payments to the KRG (Kurdish Regional Government), claiming that the Kurds have long been selling oil directly to Turkey rather than through Baghdad. This of course is true, but for a very long time, everyone turned a blind eye to this trade.
Now the KRG has run out of money and as most people work for the government this has become critical and plunged the region into economic chaos.
As with everything here, withholding the oil payments has a political motive. The Shiite government is flexing its muscles to ensure Kurdish support during the April election and the possible formation of a new coalition. Meantime people are really having to be incredibly careful with money, causing spending to drop dramatically.
So far all is calm and trouble is unlike;y to erupt, but this is the ME and nothing is predictable.
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