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What are the prospects of a permanent solution for governing relations between the Iraqi Kurdistan Regional Government (KRG) and the federal government in Baghdad? This is a question without an answer in Baghdad or Erbil. With each successive crisis, the two sides exchange accusations and threats, which are followed by conciliation based on the principle of postponing the crisis instead of finding solutions to it.
The fact is that serious disputes have always erupted between the KRG and Baghdad during the adoption of yearly budgets. Each time, the dispute has revolved around the province’s share of the budget, customs duties, financing of the Peshmerga, petroleum contracts and other issues.
