Iceland's government collapses

Prime minister says coalition has fallen due to country's financial crisis.

    Haarde has revealed he is suffering from a
    malignant throat tumour [AFP]

    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."

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Do you really know the price of milk?

    Do you really know the price of milk?

    Answer as many correct questions as you can and see where your country ranks in the global cost of living.

    The Coming War on China

    The Coming War on China

    Journalist John Pilger on how the world's greatest military power, the US, may well be on the road to war with China.