Last Update: Sunday, May 21, 2006 - 5:32am (AEST)
British Prime Minister Tony Blair led world leaders in welcoming the formation of a permanent Iraqi government - the first full-term administration since Saddam Hussein was ousted in 2003.
Mr Blair hailed it as a crucial step forward for Iraqis, who went to the polls in December but have struggled to form a government due to sectarian wrangling between main Sunni, Shiite and Kurdish groups.
"I'm obviously deeply relieved we've got a government," he told British broadcaster Sky Television.
"It's been six months of agonising wait to get one.
"The fact that you've got a government for the first time that is one of genuine national unity, voted for by over 12 million, I think that is a very, very crucial change in Iraq."
Mr Blair, Washington's main ally in the 2003 invasion of Iraq, says it is now important for the international community to "get behind the Iraqi government and help them".
The United States hailed the government's formation and said it should create conditions in which US troop numbers could begin to be drawn down.
"Iraqis now have a fully constitutional government, marking the end of a democratic transitional process in Iraq that has been both difficult and inspiring," said President George W Bush.
"This broadly representative unity government offers a new opportunity for progress in Iraq."
Additionally, Washington's ambassador to Baghdad Zalmay Khalilzad described the process which led to the formation as "without precedent in Iraq's long history" although he warned of tremendous challenges ahead.
"The future of Iraq will set the course of the future of the greater Middle East," he said.
"The future of this region will determine the future of the world over the next century."
Through a spokesman, United Nations secretary-general Kofi Annan hailed the news and congratulated the country's new leaders.
"The secretary-general welcomes the announcement of the formation of the new Iraqi government and extends his congratulations to Prime Minister (Nuri) al-Maliki and members of the first constitutionally elected government of Iraq," a statement said.
The statement said Annan "wishes the new government every success in confronting the enormous challenges facing Iraq.
Italy's new Prime Minister Romano Prodi also welcomed the formation of Prime Minister Nuri al-Maliki's government.
"The choice (to include) all the most representative components of your country is an important step on the difficult road towards the reconstruction of a democratic Iraq," Mr Prodi said.
Italy has 2,600 troops in Iraq and the centre-left Prodi said this week he would propose their withdrawal, saying the war and "occupation" was "a grave error".
Canada praised the formation of the Iraqi government as a "remarkable" achievement.
"This new government embodies the strong commitment to democracy demonstrated by the people of Iraq throughout the political transition," Canadian Foreign Minister Peter MacKay said in a statement.
-Reuters/AFP