The Palace's dominant position overlooking the River Tigris implied ultimate power when Saddam was the occupant and even more so when US forces took it over and it became the focus of the American presence in Iraq. When the keys are handed over to the Iraqi government it is probable that the Palace will become its headquarters and the office of the Prime Minister Nouri al Maliki.
The change will be practical as well as symbolic. The US presence in Baghdad is still counted in the thousands and is likely to be more comfortably and efficiently accommodated in the new US Embassy compound which is nearing completion in the Green Zone, and also overlooks the Tigris. This huge establishment is said to be bigger than the Vatican and is itself another significant statement. It is the largest US Embassy in the world and it obviously begs the question of America's long term intentions towards Iraq.
The ability of Iraq security forces to take full responsibility in 11 out of Iraq's 18 provinces and also to an increasing extent in Baghdad is a good sign. But no firm agreement has yet been reached on the status of US forces in the country and how many will remain there more-or-less permanently in the future.
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