Geir Haarde this afternoon spoke to journalists explaining that the government coalition between his Independence Party and the Social Democrats is now over. He will officially inform President Olafur Ragnar Grimsson of the situation at 16.00 this afternoon at the President’s Bessastadir residence.
In his speech, Haarde explained that, unfortunately, the two parties had not been able to come to an agreement. A large part of the problem was, apparently, the Independence Party’s refusal to give the post of Prime Minister over to the Social Democrats. He defended his party’s point-of-view, saying that the smaller of the governing parties cannot be allowed to hold the office of Prime Minister in a cabinet that is already made up of an equal number of both parties’ ministers.
Haarde said that the Social Democrats have been very difficult to work with recently; but that his relationship with their leader, Foreign Minister Ingibjorg Solrun Gisladottir, has remained strong.
Haarde stated that his preferred option now would be for the country to be governed by a unity coalition of all (or nearly all) political parties until the general election on 9th May.
Although he still feels next winter would have been the best time for elections, the most important thing now is not to allow the entire political system to become paralysed for the next three months.
I was searching for Iceland and marijuana to see what the laws are. I found this page because someone suggested Iceland legalize pot to increase tourism. That is funny because I would bring my family to Iceland for a big vacation if I could get weed legally while I was there. By the way, the only reason I looked at Iceland was microsoft’s BING had a cool picture of it.
Mike from Texas – USA
@ziggy….
sounds good, yet unlikely :(
did you ever live in texas?
>The Icelandic government is dissolved but Oddson is still the Central bank chairman
Give it time – they’ve not even formed a new government yet. David will likely be high on the agenda but they’ll need to find someone to replace him with who isn’t tainted.
Still, you have to give him credit for sheer bloodymindedness. I mean, seriously, he has to know he’s going (the president all but said so) but he’s determined to make them sack him rather than bowing out gracefully.
“In the discussions that I have had with the parties that will form a new government after a few days it is absolutely clear that one of their main projects is to change the board of governors at the Central Bank,” Grímsson said”
http://www.icelandreview.com/icelandreview/daily_news/?cat_id=16567&ew_0_a_id=319068
The Icelandic government is dissolved but Oddson is still the Central bank chairman even when the
Prime Minister had to go.
Is David Oddson undroppable??
Click here to see for yourselves http://www.icelandreview.com/icelandreview/daily_news/?cat_id=29314&ew_0_a_id=319189
I think Oddson will remain there until Elephants starts flying.
maybe it’s changing from Democracy to Fascism
The only defference between fascism and a democrocy is that a democracy has bigger cages and longer chains.
I wonder if Iceland has considered Anarchy rule; or just be like a lady that just broke up with her man , and remain single without any PM or whatever and see how that works.
:)
@Ziggy
Would be a good idea, is already being practiced in a very profitable way in Amsterdam.
Maybe legalize marijuana, open coffee houses, some related music venues–all very upscale. Iceland could become a major destination for the world’s rich and famous.
Don’t laugh! I’m being serious.
@ U.S. Citizen
Curiously enough, I’ve thought of some of these things myself. How about the establishment of off-shore banking? But then, who would trust an Icelandic bank?
@ Vilhjalm Antonsen,
Wow, All thoughs options sounded a little negitive. How about hydro-farming/Stack farming, there appears to be some food shortage crisis going on in the world. Someone said the Icelandic people have a high level of education, perhaps they could offer other nations some kind of office or tech sevices maybe. I’m sure the tourism issue isn’t completely dead. At lest I hope not. I guess what I’m saying is that fish, Oil and Gas can’t be their only income/Export. One thing they’ll for sure need to do is establish a bank they can trust. They may need to take tally of their own resources at hand and fall back on their virtues some to recover, But one needs to ask oneself, How did Iceland servive in the older days. That may give people an idea of how to re-establish themselves I think.
@ Vilhjalm Antonsen….”There was a new poll of Icelanders in the last week about EU membership. About 60% total were opposed to joining the EU, with numbers higher among those living in the country and among the Left-Green”
> Why did Iceland not join the E.U when the Icelandic currency was 60kr to $USD1?. Do you think the E.U will give Iceland Full membership over night?, There are requirements, and I don’t think Iceland will meet those requirements @ this time of economic crisis.
> And what makes you think the money IMF loaned to Iceland has been used?. It might be they are using the ones they got from other European Countries to try and organize the Icelandic Economy, and hopefully that works, then they’ll send IMF their money back.
no offense intended.
There was a new poll of Icelanders in the last week about EU membership. About 60% total were opposed to joining the EU, with numbers higher among those living in the country and among the Left-Greens.
It looks like Icelanders are still delusional and acting as if they have a choice. When the Central Bank burns through all its foreign currency reserves within the next year and the crisis becomes much more severe — with high unemployment, increased defaults, insolvency of new banks, big government spending cuts across the board — what are you going to do then? How do you pay for oil, medicine, food, plus money to keep the ISK floating and to pay interest on all the debts? If Iceland defaults on debt payments, then money from the IMF stops. The government will have to go back to the IMF and the Europeans and beg for more. And they will have to keep begging up until the vote to join the EU. And at that point the real issue will be, join the EU or starve. If you look at it rationally, the result of not joining the EU and defaulting on foregn debts is that Iceland becomes a sort of “Pirate Island” disconnected from the rest of the world, except Cuba, Venezuela, Iran, North Korea and Ecuador.
It’s not a good choice, but it’s the only choice.
I see that people have been speculating on strange schemes to quickly generate money for Iceland, eg. “Allow foreign tax shelters and corporations to set up offices under favorable tax structures, casino gambling”
The easiest way is to turn Iceland into a dumping ground for industrial waste. Bring it in on ships and take it by truck to the middle of the country where nobody lives. Or rent the middle of the country as a bombing target for Nato. Allow foreign money criminals to get citizenship for lots of money. Rent part of the countryside to the Chinese. Build prisons to house criminals from other countries. Declare war on Canada or Norway, wait til they occupy the country, then surrender. Allow sale of human organs. Legalize cannabis cultivation. Allow casinos with betting on dog fighting or russian roulette.
>Iceland could quickly raise revenue by creating a more friendly corporate environment as is done by other small places that do not have many resources,
Corporation tax flat 15% since 2008. Companies coming here welcome but think twice given what just happen.
DEREK, BUT HAARDE CAME OUT TO BE THE LEADER OF THE FIRST COUNTRY IN THE “DEVELOPED” WORLD TO TURN INTO A BANANA REPUBLIC…
HAHAHAHA, ICELAND IS A BANANA REPUBLIC NOW, IT IS TOTALLY RUINED, SEE HOW RUINED IT IS THAT THEY EVEN REACHED TO COUNTRIES LIKE POLAND TO HELP THEM!!!
>Extraordinary how Haarde manages to blame even this event on others! He doesn’t like to accept responsibility for anything, does he.
He being factual. Ingibjörg Sólrún could not keep younger opportunitsts and older opportunists in check until election.
>Even if a new and popular government comes to power, the Icelandic krona will still have no credibility. Iceland will join the EU and the Euro Area sooner or later.
Not once Icelanders understand truly what means. You describe fantasy of EU commisioners who want get hold of nice Icelandic resources.
New and popular government is not likely Left-Greens in it. Nor Social Democrats. It is rise of new party most likely, and not one that is EU memberstate joining friendly.
>Who would’ve thought that Haarde would be the first world leader “ousted as a result of the global economic crisis”??
Yes journalists not visiting Iceland to get real story or understand politics inIceland.
Real news is fighting and demands of factions in Social Democrats could not be kept down by Ingibörg Sólrún.
Who would’ve thought that Haarde would be the first world leader “ousted as a result of the global economic crisis”??
http://www.findingdulcinea.com/news/Europe/2009/jan/Financial-Collapse-Claims-Iceland-s-Government.html
“nation? ?/?ne???n/ Show Spelled Pronunciation [ney-shuhn] Show IPA Pronunciation
–noun 1. a large body of people, associated with a particular territory, that is sufficiently conscious of its unity to seek or to possess a government peculiarly its own ”
SPAIN, ICELAND HAVE NOT BEEN A NATION FOR 1.000 YEARS. IT CAN BARELY BE CALLED A NATION TODAY.
FIRST SETTLERS NEVER SAW THEMSELVES AS ONE. THEY SAW THEMSELVES AS DIFFERENT PEOPLE FROM DIFFERENT AREAS OF SCANDINAVIA COMING HERE TO FIND FORTUNE AND COMERCE AND CONTINUE VOYAGES TO GREENLAND AND OTHER PLACES IN AMERICA. THE THIS PLACE WAS NORWAY, THEN DENMARK, THEN NORWAY AGAIN, THEN DENMARK AGAIN, ONCE THE HAD A KING, HE LASTED 3 DAYS. ICELAND CAN BE CONSIDERED A NATION SINCE THE FIRST QUARTER OF THIS CENTURY. BUT THE PROCESS OF CONSTRUCTION OF NATIONAL IDENTITY IS STILL GOING ON IN THE XXI CENTURY.
AT THIS TRAGICAL POINT, ICELAND WILL BECOME A NATION WHEN GOVERN AND SOCIETY IN GENERAL HAVE A BETTER UNDERSTANDING OF IDENTITY AND NATIONALITY OF THEIR OWN COUNTRY. ICELANDIC CONSTRUCTION OF NATIONAL IDENTITY HAVE DRIVEN ITS SOCIETY HERE TO REJECT ANYTHING THAT “DOES NOT LOOK ICELANDIC”, HAS DRIVEN PEOPLE TO GO BACK TO ROOTS OR UNDERSTANDINGS OF BEING ICELANDIC THAT ARE MORE THAN 1.000 YEARS OLD.
THE PEOPLE LIVING IN ICELAND TODAY ( AFTER THE MIXING WITH IRISH, FRENCH AND BASQUE FISHERMEN, SOLDIERS DURING THE WW II, AND ALL NATIONALITIES IMIGRATED SINCE THE MIDDLE 70) HAS NOT TOO MUCH TO DO WITH THOSE VIKINGS THAT USED TO STOP HERE SEASONALLY FOR COMERCING OR TRAVELLING… THE PURITY OF THE ICELANDIC VIKING RACE IS SUCH A HUGE LIE. COME TO ICELAND AND SEE, YOU CAN SEE ALL MIXED RACES POSSIBLE.
I SAY THAT I WILL MAKE OF THIS COUNTRY A NATION WHEN ALL THE CITIZEN, ALL THE INDIVIDUALS HAVE THE CONSCIENCE OF BEING ICELANDIC AND BELONGING TO THIS COUNTRY. BUT STILL THERE IS A DISCRIMINATORY AND DIVISORY LINE BETWEEN THOSE WHO IDENTIFY THEMSELVES WITH THE EARLY VIKING SETTLERS AND THE REST OF US, THAT HAPPEN TO BE A MUCH BIGGER MIXED MAJORITY.
THAT IS WHY I SAY “I WILL MAKE OF LAND A NATION” BECAUSE I WILL UNIFY ALL UNDER THE SAME ROOF AND WE WILL WALK ALL TOGETHER IN UNDERSTANDING AND LOVE, NOT IN IGNORANCE AND PREJUDICES AND MASTURBATING OURSELVES THINKING ABOUT OF A VIKING IDENTITY OF 1.200 YEARS AGO!!
I WILL MAKE OF THIS LAND A NATION!!
YEAH ANON, LETS BUILD AN ICELANDIC VERSION OF “LAS VEGAS”… WITH ALL THE CHEAP ELECTRIC ENERGY FROM THE EARTH WE COULD PUT LOTS OF SHINNING LIGHTS. BUILD HOTELS AND ALL THAT.
ANON, YOU ARE MY MAN.
IF WE MAKE OF THIS COUNTRY A TAX PARADISE WE CAN REPLENISH OUR BANKS WITH LOTS OF MONEY.. HEHEHEEHE
I agree with Gus too, it makes no sense to deride Italy as a poor example, like Fisy does.
In Italy a lot of maffia politicians and criminals have been persecuted and jailed. There are special judges and laws for this.Moreover, italians themselves know very well what has been wrong in their country and do not lecture others. In the press, in movies, in novels, maffia practices are being attacked and exposed, even leading politicians are persecuted…iceland still has a long way to go before it can compare with this and moreover, some icelanders still seem to be living in denial.
Iceland could quickly raise revenue by creating a more friendly corporate environment as is done by other small places that do not have many resources, such as the Isle of Man or the Cayman Islands or Hong Kong (pre-PRC era.) Allow foreign tax shelters and corporations to set up offices under favorable tax structures.
Also, casino gambling can raise revenues but it would require time to build.
I for one am with Gus on that point. I think he hit the nail on the head. The only question that is left is, just how that will be accomplished?
Even if a new and popular government comes to power, the Icelandic krona will still have no credibility. Iceland will join the EU and the Euro Area sooner or later.
WHATEVER ANYON SAYS OR ARGUES HERE, THE MAIN PROBLEM OF ICELAND IS THE LACK OF HONESTY AND MORAL OF ITS POLITICAL CLASS AND THE ASSOCIATED BUSINESSMEN AND BANK SYSTEM.
WE NEED TO RESTORE DEMOCRACY. WICH MEANS THE POWER OF THE PEOPLE. WE NEED TO RESTORE THE WILL OF THE MAJORITY. WE HAVE GOT SO FAR IN DEMOCRACY FOR THIS??
FISY: “Has Iceland just become munipality of Italy?”
YOU WISH !! IF ICELAND WAS A MUNICIPALITY OF ITALY ALL THOSE MAFIA WOULD HAD BEEN PERSECUTED AND PUT IN JAIL. IN ITALY BTW THEY ARREST 200 MAFIA MEN, THEY ARREST EVERYONE, THE WHOLE FAMILY UP TO THE COUSINS…
IN ICELAND THE MAFIA OPENS BANKS ABROAD, COMMIT CRIMINAL ACTS IN THE SHADOW OF FRIENDSHIP… AND THEY GET ALONG WITH ALL THAT BECAUSE THERE IS NO JUSTICE IN THIS COUNTRY!!!
YOU FISY ARE LIVING ON AN IDEA OF SOUTHERN EUROPE THAT IS 30 YEARS OLD. THE WORLD HAVE CHANGED A LOT. SCANDINAVIAN COUNTRIES DON´T HAVE THAT HIGH STANDING ANYMORE… ICELAND HAVE SHOWN THE WORLD THAT SCANDINAVIAN COUNTRIES HAVE REALLY BACKED IN MANY THINGS…. THANKS THAT SWEDEN, DENMARK AND FINLAND ARE IN THE EU, AND THANKS THAT THE NORWEGIAN CONTROLLED THEMSELVES AND ACTED IN A CIVILIZED WAY.
BUT HERE IN ICELAND, IN THIS FEUDAL LAND OF YOUR OWN, OWNED BY A MINORITY AND RULED BY A MAFIA… YOU HAVE BEEN THE MOST CLEAR EXAMPLE OF POLITICAL BARBARISM IN A SUPPOSEDLY WELFARE DEMOCRACY… AND THEN SOME PEOPLE SAY YOU DON´T NEED TO GET IN THE EUROPEAN UNION….
LOOK, ANY EASTERN EUROPEAN COUNTRY THAT HAS GOT INTO EU PROVIDES MORE CONFIDENCE TO THE INTERNATIONAL COMMUNITY AND TO ITS OWN CITIZENS THAN ICELAND DOES…
THIS COUNTRY IS A CIRCUS THAT HAS TURNED INTO A COLD BAD WEATHER VERSION OF A BANANA REPUBLIC… WHAT A SHAMELESS GOVERMENT…
WE WISH FISY WE COULD HAVE THE VERY EFFECTIVE POLICE WE SEE IN ITALY, DO YOU WATCH TV?? JUSTICE IS BEING DONE THERE… BUT IT SEEMS THAT WE HAVE SOME PRETTY SERIOUS MAFIA UP HERE… AND THEY DO WHATEVER THEY WANT…
I DON´T KNOW HOW ARE WE GOING TO MANAGE TO FIX THIS AND CLEAN ALL THE SHIT THAT IS IN THIS COUNTRY, BUT THERE IS A LOT OF SHIT, IN THE BANK SYSTEM, AT THE GOVERMENT, IT IS SUCH A NET OF MAFIA AND CORRUPTION…
I KNOW IT IS INCREDIBLE, THIS MAFIA IN AN SCANDINAVIAN COUNTRY WHERE EVERYTHING WAS SUPPOSED TO GO LIKE SILK….
Griffin said:
My dear God…
That’s exactly what I thought when I saw it.
Gerard said:
I dear hope Iceland does not make the mistake of joining the EU in the future.
I hope so too. The next government needs to consult with the country’s most important industry (i.e., fishing), which is one of the few things keeping the economy afloat. The EU Common fisheries policy is not going to help keep the fishing industry alive; I can only imagine how much some countries in the EU want to access Iceland’s fish-rich EEZ.
At any rate, admission into the EU would take some time (estimates range from a year to early 2011), and Eurozone membership would not be until MUCH later. Remember that joining the Euro does require certain markers in the economy (a specific rate of inflation, lower public debt, etc). And it isn’t like the Eurozone doesn’t have its own problems right now; there is some (albeit limited) speculation that a few struggling countries that want lower interest rates and a weaker currency may leave.
I certainly do not believe, as did Moody’s, that a change in government now will help the economy. The economy is not going to snap back into working order just because the people have picked new people to lead them. Time, and a global recovery are the only things that can do that there.
Extraordinary how Haarde manages to blame even this event on others! He doesn’t like to accept responsibility for anything, does he.
>So you have the exchange rate in Iceland 157 to the Euro and outside 283 to the Euro
Trade is occuring at lower rate and despite what flapping mouthes day it seems that Central Bank is not burning through loan monies in this way.
http://sedlabanki.is/?PageID=287&NewsID=2016
“06.01.2009
Foreign exchange transactions by the Central Bank of Iceland
Since the interbank foreign exchange market was reinstated, [1] the Central Bank of Iceland has significantly reduced its foreign exchange trading. During the period from December 4 through December 31, the Bank sold 12.6 million euros and received 1.5 million euros, yielding a net sale of 11.1 million euros. The bulk of this amount, some 10.8 million euros, derives from interest on Treasury notes owned by non-residents, which may be exchanged for foreign currency. Therefore, the Central Bank actually conducted a negligible amount of foreign exchange trading during this period of time.
No. 2/2009 January 6, 2009
[1] See the Central Bank of Iceland news release of December 3, 2008.”
Most foreign exchange done was actually to send bondholders their interest payments.
What the last foreign exchange regulations did was to deny those bond holders taking their main money back. They could just take out their intrest payments.
http://www.landsbanki.is/english/markets/research/dailyeconomicbriefing/?NewsID=13620
“Friday, January 16, 2009 5:01 PM
International reserves decreased in December
According to data published by the Central Bank yesterday, the official reserves of the CB amounted to ISK 429.4 bn at the end of 2008, having decreased by ISK 77.2 bn (15.3%) in December. Foreign securities decreased by ISK 17.2 bn in December and foreign currency and deposits decreased by ISK 58.9 bn.
The ISK, in terms of trade weighted index, was 12% stronger by the end of December than it was at the end of November.
This appreciation most likely explains the majority of the decrease in international reserves.”
http://www.landsbanki.is/english/markets/research/dailyeconomicbriefing/?NewsID=13643
This week’s economic indicators
Statistics Iceland will publish the CPI for January on Wednesday. Landsbanki Economic Research forecast a 0.3% MoM inflation in January. If our forecast proves correct, the 12M inflation rate will rise slightly, or from 18.1% in December to 18.3%. The month is characterised by lowered prices due to sales balancing price hikes on perishables as a result of a weakened ISK. Fuel prices have not changed during the month nor do we expect any great alterations to imputed rent.
The first interest rate decision of 2009 is to take place on Thursday, 29 January, and we expect policy rates to remain unchanged at 18%. The Central Bank’s Monetary Bulletin will be published as a short web version and will include the CB’s report on economic and monetary developments and prospects.
We expect revised numbers for external trade in December, scheduled to appear this Friday, to be in line with preliminary figures amounting to a record high ISK 24 bn. According to an announcement from Statistics Iceland last month, there is an indication of increase in the value of exported marine products and aluminium but a decrease in the import of fuels, industrial supplies and consumer goods other than food and beverages in December compared with November 2008.
Further publications this week include the consumer confidence index, released tomorrow, and the producer price index this Thursday. News concerning the formation of a new government can also be expected.”
Has Iceland just become munipality of Italy?
>the most important thing now is not to allow the entire political system to become paralysed for the next three months.
Last thing people of Iceland need is nonsense like this to distract from machinery of government continuing.
Like passing sensible law like debt collection fee restruction and sale of alhohol, tax relief startup company, etc.
This just showing politicans inside Social Democrats party to be in civil war and drunk in power, so much so they put own political one up ness above boring machinery of doing their job.
And mainly desperate to force in EU memberstate member for Iceland obviously before peopel educate reality of what that really will mean.
BBC article unusually poor by standards. Wrong characteriszation of reason for dissolution.
@Koben
By the way What are you talking about the krona opened at 283 and it is now at 295.7, so much for a warm wellcome!!!hahah
This is just a stupid show, as long as Geir and David odsson are there things will remain the same, they are just changeing the people from positions and thats all, dont be naive. Like I told you before Geir and David are selling candy and pople are buying. Yes the minister of economics resign, guess who will put a new one, yes the two parties have split, haha, gues who will kip on charge? yes you gessed it correctly Geir and David, yes they will stay there as long as they decide, not a minute longer not a minute less, this devision was because of that, Ingibjörg wanted David out and Harde said NO YOU DONT TOUCH MY SWEETHAERT!!! David has everybody by the b@lls, and will dictate in this country as long as he pleases, he is worst than Castro, wellcome to CUBA!!!!
Get well soon Geir …
Sid
Jean-Pierre said:
“At last!
Iceland joins again the civilised world!
Good luck”
———————————————-
Civilized world? where is that Jean-Pierre?
A NATION I SAY!
@GUS
“I WILL MAKE OF THIS LAND A NATION.”
Nation?????? You mean a country!!
Iceland has been a nation for more than 1000 years!!
I WILL MAKE OF THIS LAND A NATION.
Still negative comments?
Isn’t this what many of you wanted?
“Time for new young politicians with fresh ideas” i beleive is how Gus worded it.
So come on start to channel your energy in a more possitive way.
Out with the old in with the new .
Gus-Next president- Get involved and make it happen !
As i said before to the foreigners in Iceland become a Icelandic citizen and make your vote count.
To quote Gus again – he wants to stay here in a country he loves to help rebuild a new Iceland with fresh idears.
So now is the time lets start!!!
A link to the BBC on government collapse below
http://news.bbc.co.uk/2/hi/europe/7851415.stm
Well well well… let’s see what happens. Will the next people in charge handle the situation any better? I don’t think so. It’s politics after all. But the people demand changes, and so changes they will have. Even if they consist of just the people in the government having different names than those who came before them.
Thank God Icelanders are strong people.
At last!
Iceland joins again the civilised world!
Good luck
It hasn’t changed stan. There are still restrictions on trade. So you have the exchange rate in Iceland 207 TWI. 157 to the Euro and outside 283 to the Euro
However I have noted that the ISK market has warmly welcomed the government resignation news. We see a slight ISK strengthening.
So, what is the TRUE ISK rate today against the Euro and USD?
VIVA LA REVOLUCIÓN!!
START BUILDING THE GUILLOTINE!!
NOW WE WILL SEE THE HEADS ROLL DOWN, WHEN THEY OPEN THE TRASH OF THE GOVERN THE SMELL WILL BE SO HORRIBLY STRONG THAT EVEN IN LONDON PEOPLE WILL HAVE TO WEAR MASKS FOR NOT TO VOMIT…
NOW WE ARE GOING TO START SEEING SOME AMAZING STUFF, LIKE THE SAME POLICE WHIH WAS PROTECTING THE MAFIA GETTING INTO THEIR HOMES TO ARREST THEM…
HAHAHAHA… THIS IS NOT A COUNTRY, THIS IS A CIRCUS!!!
I dear hope Iceland does not make the mistake of joining the EU in the future.
Maybe the Inuits invade us now… :P
To quote a couple of old Chinese proverbs .. although I think the second one might be English, possibly related to the London transport system.
why was the politician buried on the side of a hill “because he was dead”
and
“better late than never”
bob.
My dear God…