That has led senior Iraqi leaders to demand drastic change. CBS News has learned that on July 15, they plan to ask for a no-confidence vote in the Iraqi parliament as the first step to bringing down the government of Prime Minister Nouri al-Maliki.
Even those closest to the Iraqi prime minister, from his own party, admit the political situation is desperate.
"I feel there is no strategy, so the people become hopeless," said Faliy al Fayadh, an MP from the Dawa Party. "You can live without petrol, without electricity, but you can't live without hope."
Iraq's prime minister is facing his most serious challenge yet. The no-confidence vote will be requested by the largest block of Sunni politicians, who are part of a broad political alliance called the Iraq Project. What they want is a new government run by ministers who are appointed for their expertise, not their party loyalty.
The Iraq Project is known to the highest levels of the U.S. government. CBS News has learned it was discussed in detail on Vice President Dick Cheney's most recent visit to Baghdad, when he met with the Iraqi Vice President Tariq al-Hashimi.
Al-Maliki has announced his own alliance to try to save his government, but even his vice president says that's little more than a short-term fix.
"Cosmetic change is not going to serve the interests of Iraqis is not going to stabilize, is not going to improve security , what we need is much bigger that that," said al Hashimi, the leader of the Iraqi Islamic Party.
Leaders of the Iraq Project claim they have the necessary votes to force al-Maliki to resign, but that has yet to be tested in parliament. For now, the U.S. is still standing by the Iraqi leader – publicly at least.
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