A new president and government for Iraq were appointed yesterday, developments that were welcomed in both London and Washington.

Ghazi Yawer will take over as Iraq's president while Iyad Allawi will become prime minister.

Tony Blair said he wanted to "offer my congratulations to the new Iraqi prime minister, the president, the two vice-presidents and the rest of the Cabinet and say I believe this is a truly historic day for Iraq".

"This new Cabinet will help Iraq, first of all, to independence and full sovereignty after June 30, and then to the transition towards democracy which will allow Iraq finally to be governed by Iraqis under a stable and democratic system," he added.

"That will be a huge bonus not just for the people of Iraq but also for the whole of the Middle East, for peace and for the stability of the world."

Meanwhile the prospect of an early withdrawal of the coalition has increased after France secured support for a draft UN resolution which calls for an end to the coalition's mandate by early 2006.