The European Union (EU) on Monday welcomed the formation of the new Iraqi government.

"I am indeed very pleased to hear that the prime minister of Iraq has succeeded in forming a government which has been approved by the Council of Representatives on May 20, 2006," said Javier Solana, EU foreign policy and security chief, in a statement.

He said the formation of the new government is a "significant development."

"The EU is ready to engage with the new government in supporting efforts of national reconciliation and reconstruction. I look forward to working with the new government of Iraq."

Austria, which holds the EU presidency, said Monday that the 25- nation bloc "warmly welcomes" the formation of the Iraqi government.

"The European Union firmly believes that the formation of this government of national unity and a swift subsequent confirmation of the ministers of interior and defense will contribute significantly to the political and economic reconstruction of Iraq in a spirit of reconciliation by promoting inclusiveness and anti- sectarian policies."

The formation of the government will represent another important step towards national consensus and will contribute to the stabilization of the country and its further integration into the international community, it said.

Source: Xinhua