Iceland’s Prime Minister Geir Haarde is under increasing pressure to call a snap election after a senior government member joined calls for an early vote.
Iceland’s foreign minister, a key coalition partner, has urged Haarde to hold elections this spring.
The comments came as demonstrators outside Iceland’s parliament in the capital Reykjavik continued to demand the government step down over its handling of the economy.
Protests have become increasingly violent in recent days, with police using tear gas for the first time in more than 50 years.
On Wednesday, the prime minister was forced to make a quick escape after protesters surrounded his car.
Last October, Iceland’s economy went into meltdown after many Icelandic banks collapsed under the weight of billions of euros of foreign debt.
Despite the popularity plunge, Haarde has vowed to fight on, with the next election not due until 2011.
Iceland's PM urged to call snap election