Finance Crisis Topples Iceland's Gov't

Leftist party likely to replace coalition; protests growing
By Matt Cantor,  Newser User
Posted Jan 26, 2009 11:55 AM CST
Thousands of Icelanders have been protesting outside parliament in Reykjavik over the country's economic meltdown.    (AP Photo)
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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.