TEHRAN, April 5: Iran’s top hardline body has reached a compromise with reformists after a row over funding of a conservative constitutional watchdog, parliamentarians said on Saturday.

The compromise is seen as a setback for hardliners as the watchdog body, known as the Guardian Council, has thwarted attempts by reformists led by President Mohammad Khatami to foster greater democracy in Iran.

A budget row erupted last month between reformists and hardliners after the Expediency Council — Iran’s top arbitration body — decided to more than double the Guardian Council’s annual budget to $12.5 million.

The normally non-confrontational Khatami walked out of an Expediency Council’s meeting in protest, and reformists immediately denounced the move as unconstitutional.

The decision to increase the Guardian Council’s budget was perceived as a direct challenge to legislation presented by Khatami late last year which would remove the Guardian Council’s power to veto election candidates.

The Guardian Council has been a thorn in the side of Khatami’s efforts to promote more justice and social freedom in the Islamic Republic of 65 million people.

Dominated by hardline clerics, the 12-member watchdog has used its extensive powers to block legislation approved by the reformist-controlled parliament and veto many reformist candidates from standing in elections.

Parliamentarians said the two sides agreed not to change the sum allocated by parliament for the Guardian Council’s budget for the current Iranian year, which started on March 21.—Reuters