Iceland’s government collapses
Prime minister says coalition has fallen due to country’s financial crisis.
Discord
In negotiations with the coalition over the weekend, the Social Democrats had demanded the post of prime minister.
Haarde said: “We couldn’t accept the Social Democratic demand that they would
lead the government.”
Ingibjorg Gisladottir, Iceland’s foreign minister and leader of the Social Democrats, was a potential replacement for Haarde.
Gisladottir said a more powerful leadership was needed.
“The government’s actions in the last weeks and months were not swift enough,” she said.
The Social Democrats said they are considering a possible coalition with the Left Greens.
On Sunday, Bjorgvin Sigurdsson, Iceland’s minister of commerce, resigned over his part in causing the economic crisis.
Sigurdsson, a member of the Social Democratic Alliance, said: “I have decided to do this to take responsibility. I realised last night that for me, at least, there is no
going back.”