The president of Iceland, Olafur Ragnar Grimsson is still in the last of his meetings with political party leaders which started at 21.00 this evening.
He will use the meetings to try to work out a way forward for the government. As the Social Democrats, the Left Greens and the Progressives all support the idea of a minority coalition between the Social Democrats and the Left Green Party with Progressive Party support, that seems like the President’s most obvious choice as things stand.
Such a coalition would probably make bringing the general election forward from the scheduled 9th May one of its first priorities.
However, if the President does not feel there is a suitable solution in sight, he could theoretically dissolve parliament altogether and call new elections, which would (presumably) take place long before 9th May.
Given the unprecedented nature of today’s events, it is not yet possible to say when there will be a firm decision; but it looks increasingly likely a decision will not be announced until tomorrow.
More details on IceNews as they come.
How come the Social Democrats to be in the new government again? They just ruined the best country in the world.
Da doc
they were minority partner in govt for the lasst 18 months. the routes of the Icelandic banking criess lie in
1- poor Icelandic banking regulation since 2000
2 -poor economic management at the Central Bank since 2000 (hard ISK and no lender of last resort)
3 – corrupt (?) relationships between senior finance, commercial, regulatory managers
4 – arrogance
The Social Democrats, like all Icelanders, played their part in this, but the fish rots from the top and so responsibility probably lies more with other individuals
I’m an outsider to Iceland, but I love the country and intend to move there someday, when I make my fortune or something. Hope you guys don’t mind if I tag along and ask stupid questions.
Isn’t another problem that the U.S. was their biggest buyer of goods. We stopped spending. I haven’t been to a restaurant since before Christmas. I’m paying off debts like a madman. Not spending. Isn’t that the most immediate cause of this problem?