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Iraq’s Kurdistan Regional Government (KRG) is fuming over the continued shortfall in payments by Baghdad of its share of the federal budget. Should negotiations fail, Erbil warned on 14 May, it will have to resort to other means to secure funds to pay salaries, cope with some 1.5mn refugees and bear the cost of the fight against Islamic State (IS). The ultimatum comes amid renewed talk by KRG President Masoud Barzani of plans to hold an independence referendum.
Iraq is at greater risk today of splitting into three separate entities with the battle against IS deepening existing sectarian fault lines.
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