Iraqi Budget Tests Relationship between Sudani, Political Parties

Iraqi Prime Minister Mohammed Shia al-Sudani (Reuters)
Iraqi Prime Minister Mohammed Shia al-Sudani (Reuters)
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Iraqi Budget Tests Relationship between Sudani, Political Parties

Iraqi Prime Minister Mohammed Shia al-Sudani (Reuters)
Iraqi Prime Minister Mohammed Shia al-Sudani (Reuters)

Controversy over Iraq’s budget has resurfaced, but this time from a political aspect.

As the government of Mohammed Shia al-Sudani insists that no major changes should be made in the budget for the current year 2023, the political parties see the budget as a gateway to stand up to the government, especially following the premier’s recent announcement of a cabinet reshuffle.

The budget suffers from a large deficit, but the political blocs found in this an opportunity for more quarrels with the government. In addition, setting the price of oil at $70 per barrel is considered by the political and parliamentary blocs as a risk with unsafe consequences. If prices fall, the deficit will increase.

Nonetheless, the most important political aspect for the political forces, including Sudani’s partners, is setting a budget for a period of three years, which would give the government absolute powers in terms of financial spending, perhaps without returning to parliament.

Sudani, for his part, seems self-confident, but not very assured about his partners. In his last television interview, he spoke about restoring the Iraqi people’s trust in the political system.

In fact, the measures that the prime minister initiated at the level of services and economic reforms began to yield positive results, the most important of which is the US dollar price, which has started to decline against the Iraqi dinar.

In this context, Economist Bassem Antoine told Asharq Al-Awsat that the exchange rate of the US dollar against the Iraqi dinar “will return to the official rate set by the government after the approval of the financial budget.”

He added: “There are those who exploited the dollar file over the past months,” noting that the measures adopted by the government and the central contributed to stopping the rise of the dollar.



Japan PM Ishiba Says Disagreements Remain with US on Tariff Talks 

Japanese Prime Minister Shigeru Ishiba speaks during a press conference at the conclusion of the Group of Seven (G7) Summit in Calgary, Alberta, Canada on June 17, 2025. (AFP)
Japanese Prime Minister Shigeru Ishiba speaks during a press conference at the conclusion of the Group of Seven (G7) Summit in Calgary, Alberta, Canada on June 17, 2025. (AFP)
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Japan PM Ishiba Says Disagreements Remain with US on Tariff Talks 

Japanese Prime Minister Shigeru Ishiba speaks during a press conference at the conclusion of the Group of Seven (G7) Summit in Calgary, Alberta, Canada on June 17, 2025. (AFP)
Japanese Prime Minister Shigeru Ishiba speaks during a press conference at the conclusion of the Group of Seven (G7) Summit in Calgary, Alberta, Canada on June 17, 2025. (AFP)

Japan's Prime Minister Shigeru Ishiba said his country has not reached a comprehensive tariff agreement with the United States as some disagreements persist between the two nations.

Ishiba, talking to reporters after the Group of Seven leaders' summit in Canada on Tuesday, emphasized the importance of securing a trade deal that benefits both countries while safeguarding Japan's national interests.

Ishiba, who was at his first G7 summit as prime minister, held tariff talks US President Donald Trump on Monday, but the meeting ended without an agreement to lower or eliminate the 25% tariff Trump has imposed on Japanese auto imports.

Ishiba said US tariff measures were impacting the earnings of many Japanese companies, including those in the automobile sector, while causing a significant impact on the global economy.

"Both Japan and the United States have continued sincere discussions, exploring the possibility of an agreement until the last moment," he said. But Ishiba added there still remain points of disagreement between the two sides.

Ishiba's news conference in Calgary, Canada was held following a gathering of G7 leaders at the nearby Kananaskis mountain resort in the Canadian Rockies.

Ishiba also met other leaders for bilateral talks including his first meeting with German Chancellor Friedrich Merz. The Japanese leader also discussed security relations with South Korean President Lee Jae-myung before heading back to Tokyo.

The summit ended without a joint statement of support from the group for Ukraine after US President Donald Trump expressed support for Russian President Vladimir Putin and left the event a day early to address the Israel-Iran conflict.

On the Middle East, Ishiba said he had told G7 leaders that Iran's nuclear development was "never tolerable", while stressing the importance of diplomatic efforts through dialogue.

Ishiba will participate in the NATO Summit in the Netherlands next week, he added.