President George W. Bush praised the new Iraqi government that took office over the weekend, saying on Monday that the move is “a watershed event” for the region. “The world saw the beginning of something new: constitutional democracy at the heart of the Middle East,” Bush said in a Chicago speech focused on Iraq and the battle against international terrorism. Bush's speech came as Iraq's parliament prepared to meet for the first time after swearing in a new government on Saturday. The national unity government faces severe security challenges and a series of other problems, while Bush is under domestic pressure to say when U.S. soldiers will leave Iraq. “This is a free government under a democratic constitution, and its formation marks a victory for the cause of freedom in the Middle East,” Bush said. The White House has regarded the establishment of a new government as a key step toward stabilizing Iraq and making discussion of an eventual U.S. troop withdrawal possible. The U.S. president singled out Iraq's new prime minister, Nouri al-Maliki, and parliament speaker Mohmoud al-Mashhadani for praise. But he acknowledged that the path ahead will be difficult for them and for the U.S.-led coalition. --MORE