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FRIDAY, NOVEMBER 27, 2009
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Finance Crisis Topples Iceland's Gov't

Leftist party likely to replace coalition; protests growing

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(Newser) – Iceland’s coalition government collapsed today amid financial upheaval, with PM Geir Haarde planning to resign. “I really regret that we could not continue with this coalition. I believe that that would have been the best result,” he said. The coalition had been in turmoil since October, when the financial crisis hit Iceland and its banks collapsed, Reuters reports.

“This is not unexpected and at least it is the end of the pain politically. I would view it as good news because it should give us more clarity rather than less,” said a market researcher. While Haarde proposed a unity government headed by a member of his party, polls suggest the Left-Green Party will take over in an election.

Thousands of Icelanders have been protesting outside parliament in Reykjavik over the country's economic meltdown.
Thousands of Icelanders have been protesting outside parliament in Reykjavik over the country's economic meltdown.   (AP Photo)
Iceland's Prime Minister Geir Haarde, right, addresses journalists at the parliament in Reykjavik today.
Iceland's Prime Minister Geir Haarde, right, addresses journalists at the parliament in Reykjavik today.   (AP Photo)
Iceland's Prime Minister, Geir Haarde speaks at a press conference in Reykjavik.
Iceland's Prime Minister, Geir Haarde speaks at a press conference in Reykjavik.   (AP Photo)
Iceland's Prime Minister Geir Haarde, right, addresses journalists at the parliament in Reykjavik, Iceland, Monday, Jan. 26, 2009. Haarde said Monday the island nation's coalition government has collapsed amid a deepening financial crisis.
Iceland's Prime Minister Geir Haarde, right, addresses journalists at the parliament in Reykjavik, Iceland, Monday, Jan. 26, 2009. Haarde said Monday the island nation's coalition government has collapsed...   (AP Photo/Brynjar Gauti)
Protesters burn an effigy of the Icelandic Prime Minister Geir Haarde during a demonstration over the handling of the financial crisis in Reykjavik, Iceland, Wednesday Jan. 21, 2009.
Protesters burn an effigy of the Icelandic Prime Minister Geir Haarde during a demonstration over the handling of the financial crisis in Reykjavik, Iceland, Wednesday Jan. 21, 2009.   (AP Photo/Thorvaldur Kristmundsson)
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The left wing is likely to get a very good showing in the election. The likely verdict of the Icelandic people is that they will want the current government well out of the way. - Lars Christensen, emerging market researcher, Danske Bank

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Mr.C
Jan 26, 09 2:23 PM CST
? wha? Reply
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radnip
Jan 27, 09 2:13 AM CST
Is there a human society without greed? I guess greed trumps self-preservation? Reply
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