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Iceland government survives no-confidence vote

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Iceland government survives no-confidence vote


Iceland’s government has narrowly survived a vote of no-confidence.

It is some rare good news for the centre-left administration which suffered a defeat in a key referendum on Sunday. Voters rejected a deal to settle a debt dispute with Britain and the Netherlands.

The main opposition leader has no regrets, despite losing the no-confidence motion by two votes.

“I think it was timely and necessary that the voting took place and discussion on the support to the government and the outcome is clear,” said Independence Party leader Bjarni Benediktsson. “The government has the lowest possible support in government to continue.”

The government had negotiated the deal to reimburse Britain and the Netherlands, which compensated savers in their countries who lost money when banking group Landsbanki collapsed in 2008.

The row will now most likely be settled in a European court.

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