Iraq has a complex context marked by political upheaval, economic challenges, social transformations, and security concerns. The political landscape has been characterized by a struggle to establish stability and democratic governance following the end of Saddam Hussein's regime. The transition is marked by efforts to establish representative institutions. However, sectarian tensions and political divisions have hindered progress. Various political and ethnic factions, such as Shia, Sunni, and Kurdish, play significant roles in government and policies and lead to challenges in balancing power and addressing grievances of communities.

Iraq possesses vast oil reserves and is highly reliant on oil exports for revenue. Its economy faces major challenges due to fluctuating oil prices, corruption, and mismanagement. Efforts to diversify the economy and promote private sector growth are hindered by bureaucratic hurdles and the security environment. Iraq struggles to attract foreign investment and rebuild its infrastructure. Moreover, its social fabric is deeply affected by decades of conflict and instability. Sectarian tensions and ethno-religious divisions have contributed to social fragmentation. The lack of access to quality education, healthcare, and basic services remains a significant concern. Displacement due to conflicts such as the rise of the Islamic State (IS), led to a humanitarian crisis, with millions of internally displaced persons (IDPs) and refugees seeking shelter and assistance. Women's rights and gender equality also remain areas of concern.

Iraq's security landscape is dominated by a range of challenges, including terrorism, insurgency, and sectarian violence. The rise of IS in 2014 led to a significant security crisis, with the group capturing large territories and declaring a self-proclaimed caliphate. Subsequent international coalition efforts helped push back IS. However, the group's remnants and sleeper cells continue to pose threats. Moreover, Iraq faces challenges in rebuilding its security forces, addressing corruption within its ranks, and preventing external influences from exacerbating internal conflicts. Efforts are ongoing to address electoral reforms and reduce corruption. However, the country still faces considerable challenges in terms of governance effectiveness, economic diversification, and security. Protests erupted in 2019, driven by public frustration with corruption, unemployment, and inadequate services. While these protests led to some changes, they also highlighted the Government of Iraq’s (GoI) ongoing struggle to meet citizens' expectations and needs. Parliamentary elections in October 2021 led to a political deadlock and violent clashes between supporters of political groups until a government was formed in October 2022.

The ‘EU Facility Supporting Policy Dialogue and Technical Assistance in Iraq’ (hereinafter “the Intervention”) is a long-term €4.5 million European Union (EU) funded initiative. It focuses on addressing the above-described challenges by strengthening the Iraqi public sector’s capacity to plan and deliver policy that is responsive to citizens’ needs and, in so doing, contributes to socio-economic development and a peaceful and just society. It does this through the provision of demand-driven technical assistance and surge capacity to the EU, GoI, and non-State actors on priority areas articulated in the EU 2021-2027 Multi-annual Indicative Programme (MIP). These include strengthening policymaking and institutional capacity of key government institutions, federal parliament, the judiciary, and civil society, along with cross-cutting support to responsive and conflict-sensitive EU programming. The Intervention is financed via the ‘Special Measure in favour of Iraq for 2020 part 2" and implemented under a service contract by DAI Global, running from July 2022 to August 2025. The consortium further consists of Al-Bayan Centre for Planning and Studies and VNG International.