Schröder and Blair to Discuss Germany's Future in Iraq

German troops may have played no part in coalition-led fighting against the fallen Iraqi regime, but Germany may yet play a central role in postwar Iraq.

The British Prime Minister, Tony Blair, is to meet Chancellor Gerhard Schröder on Tuesday for talks on Germany's role in postwar Iraq. The two will meet in the German leader's home constituency, Hanover, ahead of Wednesday's summit of EU foreign ministers in Athens, which U.N. Secretary General Kofi Annan is expected to attend.

While the world waits to see what shape Iraq will take, reports in the German press are claiming that unofficial talks on Germany's post-conflict role have long been underway between the two countries.

According to the reports, Britain wants German experts to work predominantly in British-controlled southern Iraq to rebuild telecommunication networks, re-establish electricity and water supplies and clear mines. Germans carrying arms may also play a role, albeit performing security functions.

British Defense Secretary Geoff Hoon told the German Sunday tabloid, Bild am Sonntag "We would welcome it if we (Germany and Great Britain) could work together in Iraq."

Government denies unofficial talks

But the German government –- which has already promised €90 million in humanitarian aid to Iraq and appears to be sticking to the EU line -- has denied the rumors.

"Who is doing what can only be decided when the role of the U.N. has been clearly defined," a government spokesperson told German news agency dpa. The EU said this week it wants the U.N. to play a central role in Iraq.

Over the weekend, however, German politicians were lining up to give their opinion on whether German firms should be involved in Iraq.

The leader of the opposition party, CDU/CSU, Angela Merkel, together with chairman of the CSU parliamentary group, Michael Glos called for a NATO-led peacekeeping force to be sent to Iraq and said they would hold the Schröder government responsible if a NATO no-show resulted in German companies missing out on lucrative contracts to re-build Iraq.

But the leader of the Green parliamentary group, Katrin Göring-Eckardt attacked Merkel's position,saying that Germany should give humanitarian aid without thinking of the influence this might have on winning contracts.

But any German involvement may not sit well with the Bush administration after last weekend's Franco-Russo-German summit in St. Petersburg. Last week, the U.S. Deputy Defense Minister, Paul Wolfowitz called for European countries to aid a swift rebuilding of Iraq by waiving debts owed to them by Iraq. But German finance minister, Hans Eichel made it clear that Germany would not be toeing the U.S. line regarding the loan repayments from Iraq, estimated at $4 billion (€3.7 billion).

Speaking at last weekend's G7 summit in Washington, Eichel said: "I don't merely expect to get the $4 billion back – I will get it back."