Russia, France and Germany have signed up to a deal that will see them forgive 80 per cent of Iraq's debt.

The move, which was welcomed by the White House as signalling an end to transatlantic divisions, will see the country's debts to key creditors cut from $38.9 billion to $7.8 billion.

It was also announced yesterday that elections in Iraq will go ahead on January 30.

And in an interview with the Independent, General Sir Mike Jackson says that the time which the army remains in Iraq "is going to be event driven".