The authors analyze the problems connected with Iraqi Central government’s attempts to battle separatism and to strengthen federal institutions through legislative measures. The authors rely on the analysis of the Constitution of Iraq adopted in 2005 and the draft Constitution of Iraqi Kurdistan, approved by the Kurdistan Parliament on June 24, 2009. Speeches of Iraq’s political leaders and the press are also used. It is concluded that due to the fact that Kurdistan has suffi cient economic potential for the sustainable development its policy makers contemplate possible secession. This leads to strained relations not only between the Kurdish region and the Central government, but between Iraq and its neighboring countries with a signifi cant Kurdish population.