Iraqi PM to visit Germany, Italy, meet pope

BAGHDAD (Reuters) - Iraqi Prime Minister Nuri al-Maliki flies to Europe this week to meet leaders in Germany and Italy, woo businessmen and hold talks with Pope Benedict.

The trip builds on a flurry of diplomatic activity in the past month as regional countries have moved to upgrade ties with Baghdad, write off debts and talk about rebuilding Iraq.

Maliki will visit Germany from July 21-23 and Italy from July 24-25.

With violence at its lowest since early 2004, Maliki is expected to push the message that Iraq has emerged from civil war and is now throwing out the welcome mat for investment.

"Maliki wants ... to enhance Iraq's legitimacy and use the improved security to kickstart diplomatic and economic ties," said Hashim Hassan, a lecturer in media at Baghdad University.

German Economy Minister Michael Glos, who this month became the first German cabinet minister to visit Iraq since the U.S.-led invasion in 2003, said Iraq was "ripe" for investment.

"It seems to me that (Maliki) has to a large extent managed to push back the terrorists with his own security forces, across all ethnic groups," Glos told the Die Welt daily last week.

Europe is especially interested in Iraq's energy potential.

The European Union is negotiating an energy pact with the Iraqi government, part of the bloc's efforts to reduce dependence on Russian oil and gas. Iraq has the world's third largest proven reserves of oil and in late June opened key producing fields to foreign investment.

Besides oil, Iraq's new investment agency says investors have submitted proposals worth tens of billions of dollars in sectors such as housing, construction and hotels, a sign some increasingly see the security risks as manageable.

Iraqi analyst Ibrahim al-Sumaidi said that with violence well down, firms could afford to pay for security.

"The smallest investment company could provide its own security, knowing the profit potential in Iraq is very high and that this could cover its security expenses," he said.

Maliki is also expected to brief Pope Benedict on the government's measures to foster reconciliation among Iraqis after years of bitter sectarian conflict.

The Pope has often called for an end to violence in Iraq. He condemned the kidnapping and killing earlier this year of the Chaldean Catholic Archbishop of Mosul, Paulos Faraj Rahho.

Maliki, a Shi'ite, has won praise from Sunni Arab leaders for cracking down on Shi'ite gunmen in recent months.

The main Sunni Arab bloc rejoined parliament on Saturday, after quitting a year ago in a row over power sharing.

"A big change has happened. Maliki proved he can balance the conflicting interests of the political blocs," Sumaidi said, referring to the factions that put Maliki in power. "He has learnt ... to become more of a statesman, less a party man."

Italy took part in the U.S.-led invasion of Iraq, sending 3,000 troops, the fourth largest contingent. It withdrew its last soldier at the end of 2006. Germany opposed the invasion.

Iraq has received several high-level visitors in the past month, including British Prime Minister Gordon Brown, Turkish Prime Minister Tayyip Erdogan and Lebanese politician and billionaire tycoon Saad al-Hariri.

(Additional reporting by Kerstin Gehmlich in Berlin and Khalid al-Ansary in Baghdad, Editing by Dean Yates and Ibon Villelabeitia)