BERLIN: Security improvements in Iraq could open a "new chapter" in relations between Berlin and Baghdad, German Chancellor Angela Merkel said last night.

Iraqi Prime Minister Nuri Al Maliki met Merkel to promote a "new image of Iraq" and invite German firms to invest in his country.

"I'm happy to see that the security situation in Iraq is improving step by step. That is a precondition for economic and and political reconstruction."

She said Berlin could offer Iraq technological know-how and Maliki referred to co-operation in the cement and steel sector.

"We are pleased that some German companies have already expressed interested in helping to rebuild Iraq." She said Maliki had asked for German assistance in the areas of training, renewable energy and infrastructure.