In 2017, Iraq saw events that dramatically changed its political and societal reality. Not only the territorial defeat of the so-called Islamic State but also the Iraqi Kurdistan referendum and the retaking of the disputed areas by Iraqi forces loyal to Baghdad had important implications for the Middle East as a whole and also affected the strategic calculations of external players with a stake in the region. The European Union should catch this opportunity to play a more proactive role in its Iraq policy by focusing on institution-building and reconciliation between Iraqis, including the Kurds. This publication is part of the MENARA Future Notes series which in the form of policy briefs analyse ongoing events in the SEMCs and Middle East region, emphasising the implications for the EU, suggesting the best policy options and assessing plausible and preferable future scenarios.