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US President Barack Obama has declared that American troops will leave Iraq this month "with honour and with their heads held high", while at the same time warning the country's neighbours not to interfere in its progress. In a press conference with Nouri al-Maliki, Iraq's prime minister, at the White House on Monday, Obama said: "This is a historic moment. A war is ending." The president also said that the US would leave behind a sovereign and self-reliant Iraq, and that the removal of troops after nearly nine years would begin a new chapter in the relationship between the two countries - warning neighbouring nations not to interfere. "Our strong presence in the Middle East endures," Obama said. "And the United States will never waver in the defence of our allies, our partners and our interests."  "That is the concern, that at the end of the day the Iraqi officials have much closer ties to the Iranians." Obama ...

The United States likely will need to keep thousands of troops in Iraq beyond 2011 to keep a lid on sectarian tensions and to bolster Baghdad's fledgling military, experts and former officers say. American officials privately acknowledge that the US military presence in Iraq will almost certainly be extended, even though a security agreement in force requires all US forces to depart by the end of 2011. The US military will be needed not only for technical tasks to keep the Iraqi armed forces afloat, but as a reassuring presence for Iraqis fearing a revival of sectarian and ethnic bloodshed, analysts said. Baghdad's military remains heavily dependent on US logistical support, air power, equipment and expertise, while most Baghdad politicians are anxious to retain American troops as a peacekeeping force in reserve. "The more pressing requirement is less teaching them how to use weapons and more providing reassurance to threatened internal communities that they won't ...

More than $5 billion in American taxpayer funds has been wasted which is more than 10 percent of the some $50 billion the U.S. has spent on reconstruction in Iraq, according to audits from a U.S. watchdog agency. As the U.S. draws down in Iraq, it is leaving behind hundreds of abandoned or incomplete projects. A $40 million prison sits in the desert north of Baghdad, empty. A $165 million children's hospital goes unused in the south. A $100 million waste water treatment system in Fallujah has cost three times more than projected, yet sewage still runs through the streets. That amount is likely an underestimate, based on an analysis of more than 300 reports by auditors with the special inspector general for Iraq reconstruction. And it does not take into account security costs, which have run almost 17 percent for some projects. There are success stories. Hundreds of police stations, border forts and government buildings have been built, Iraqi security forces have improved after year...