Shafaq News/ On Thursday, the European Union mission in Iraq welcomed the agreement between Baghdad and Erbil concerning funding employees' salaries in the Kurdistan Region.
EU Ambassador to Iraq, Thomas Seiler, stated on the X platform, "We believe that such agreements contribute to the stability of the Kurdistan Region and Iraq in general."
"The European Union will continue to call on all actors to find mutually acceptable solutions."
In another post, Seiler said he looks forward to "my upcoming visit to the Kurdistan Region of Iraq in the following weeks, during which I am prepared to listen to and engage with all involved parties."
On Wednesday, the Kurdistan Regional Government (KRG) and the Iraqi federal government announced a breakthrough, agreeing on a long-standing dispute regarding public sector salaries in the Kurdistan Region.
According to a statement issued by Prime Minister Masrour Barzani, the agreement marks a significant step towards resolving a key source of tension between Erbil and Baghdad.
"We have arrived at a satisfactory solution for allocating salaries to employees and retirees in the Kurdistan Region," Barzani stated. "This achievement follows persistent efforts and extensive collaboration between our team and the team of the Prime Minister of the federal government."
Barzani expressed his gratitude to Iraqi Prime Minister Mohammed Shia al-Sudani and "all the forces and parties that provided support in overcoming these obstacles and challenges together."
He also acknowledged the "numerous attempts to undermine the people of the Kurdistan Region in recent times." Barzani then commended the employees and retirees in the region for their "steadfastness and patience."
Notably, the Kurdish government has faced significant challenges in meeting the timely and complete payment of salaries to its civil servants for the past decade. This financial strain intensified following a ruling by a Paris-based arbitration court that suspended the KRG's oil exports to international markets a year ago, exacerbating its economic crisis.
As a result, the KRG has been heavily reliant on local income sources and its allocated share from the federal budget, which has been a subject of controversy. Despite efforts to manage its fiscal situation, the KRG has consistently struggled to meet its salary obligations.
The Federal Supreme Court of Iraq's decision worsened the situation by issuing a ruling ordering the "localization" of salaries for all Kurdistan Region employees in federal banks. This decision has resulted in the halt of salary disbursements, leading to numerous strikes across various sectors.