http://www.wvwnews.net/story.php?id=6477
Iceland’s coalition government has collapsed under the strain of an escalating economic crisis.
Conservative Prime Minister Geir Haarde announced the resignation of his cabinet, after talks with his Social Democratic coalition partners failed.
He said he could not accept the Social Democrats’ demand to lead the country.
Iceland’s financial system collapsed in October under the weight of debt, leading to a currency crisis, rising unemployment and daily protests.
The economy is forecast to shrink by almost 10% this year.
The coalition between Mr Haarde’s Independence Party and Foreign Minister Ingibjorg Gisladottir’s Social Democratic Alliance had been under strain in recent months.Mr Haarde told reporters on Monday: “We couldn’t accept the Social Democratic demand that they would lead the government.”
The Independence Party currently controls 25 of the country’s 63 parliamentary seats, to the Social Democrats’ 18.
The announcement comes three days after the prime minister called an early general election for 9 May, adding that he would not stand for health reasons.
http://news.bbc.co.uk/2/hi/europe/7851415.stm