BREAKING NEWS

BREAKING NEWS

Iceland to hold early election

Now Reading:

Iceland to hold early election

Text size Aa Aa

Campaigning has already got underway in Iceland, where people power has won the day, forcing the government to hold an early general election.

After months of protests prompted by Iceland’s financial meltdown in the wake of the credit crunch, Prime Minister Geir Haarde has finally bowed to public pressure and called a poll for May. The leader of the main opposition party has already come to the fore, saying he will renegotiate the terms of the country’s seven billion euro IMF brokered aid package if elected. The global financial crisis made landfall in Iceland in October, triggering a collapse in its currency and financial system, which buckled under the weight of billions of euros of foreign loans by its banks. Protests were held every week calling for the resignations of the prime minister and other senior officials. Police were forced to use teargas on demonstrators this week for the first time since 1949.