Richard Beeston (left), Times Diplomatic editor, says that Iraq's new Shia-led government must make up for lost time

Iraq finally has a government - is it what the Americans and British would have wanted?

I do not think that the Americans or British cared very much who from the victorious parties in December's elections formed the government. What they would dearly have wished is that this government had been formed earlier, not three months after the polls. Predictably the the new Government is dominated by Shia Muslims, whose main party won a landslide. They will be sharing power with the Kurds and have given some key jobs to the minority Sunni Muslims.

Although their voters largely boycotted the elections, the inclusion of Sunni politicians in the cabinet is vital for the success of this government. The big absentee is the party headed by Iyad Allawi, the former interim prime minister, a secular Shia who has probably calculated that for the time being he is better served placing himself in the opposition.

How will it affect the country and the region?

For the average Iraqi it should give them hope that a legitimate leadership with a mandate from the people has now taken power. In reality, I doubt much will change in Iraq. Security is still largely in the hands of the US-led coalition, and until a credible Iraqi security force has been trained and put in place that will remain the case. Also, this is a transitional government that has a very specific task to perform in a very limited period. It must draw up a constitution that satisfies all Iraq's communities, hold a referendum on that constitution, and once it is passed hold another round of general elections by the end of this year, when a permanent government will be elected.

As far as the region is concerned, many countries will be watching events today very carefully. This is the first democratically elected government in Iraq. It is also the first time in many centuries that a government dominated by Shias has come to power in an Arab country. That could have an explosive effect on the large and downtrodden Shia communities in Bahrain, Kuwait, Lebanon and Saudi Arabia.

What do you make of the return of Ahmad Chalabi?

His appointment as Deputy Prime Minister and Oil Minister confirms that he is one of the great political survivors of Iraqi politics. Although he has largely lost support from his friends in Washington and is widely discredited in the region he remains a real player, and is in control of Iraq's most important industry.

What next?

The new Government has to make up for lost time and dispel the image that they have wasted weeks in haggling for cabinet posts while the country has been gripped by violence. The Government must try to persuade Iraqis that the election which they took part in was worthwhile. They need to demonstrate that they are capable of improving the lives of ordinary Iraqis, through tackling the security situation, putting renewed effort into reconstruction, and getting on with the job of drafting the constitution and preparing for the referendum and late the elections. They must also show that they do not represent the narrow interests of the Shia or Kurdish communities, but they will work for all Iraqis. They can best do that by appealing to the Sunni community, including elements in the insurgency, and persuade them to enter into dialogue and ultimately into the country's political process and give up violence.

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