The Icelandic artist Snorri Asmundsson has taken the decision to put himself forward for the leadership of the Independence Party at the national conference beginning 29th January.

The current Independence Party leader is Prime Minister Geir H. Haarde, who has not expressed a wish to resign his position and has not invited candidates for a leadership vote. Read the full story

Halldor Asgrimsson, former Icelandic PM and chairman of the Progressive Party, was taken ill with pneumonia shortly before Christmas and spent two weeks on a life support machine in a serious condition. Read the full story

The Prime Minister’s Office has enlisted the services of Swedish banking expert Mats Josefsson, on a temporary basis. Mats Josefsson will succeed the previously appointed Ásmundur Stefánsson as advisor on rebuilding Iceland’s banking system. Read the full story

PRESS RELEASE FROM THE ICELANDIC PRIME MINISTER’S OFFICE:

Reykjavik, Iceland – 17 November 2008 – In the wake of the recent international financial turmoil, Iceland’s economy is facing a banking crisis of extraordinary proportions. The economy is heading for a deep recession, a sharp rise in the fiscal deficit, and a dramatic surge in Read the full story

PRESS RELEASE FROM THE ICELANDIC PRIME MINISTER’S OFFICE:

The Icelandic Government has reached an agreement ad referendum with a mission from the International Monetary Fund (IMF) on a comprehensive stabilisation programme. Read the full story

During a meeting with the Icelandic Independence party this morning, PM Geir H. Haarde didn’t mince words about the British authorities. According to him, the British authorities had brought Iceland’s largest bank to its knees with their abuse of power this last week and that Iceland must look seriously into the possibility of litigation, MBL reported.

Haarde said that a government should naturally defend the rights of its subjects, but the statements of the British had been quite unwarranted.

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The Icelandic government appreciates that the British authorities are willing to step in and respond to the immediate concerns of depositors of Landsbankinn Icesave accounts.

The governments of the two countries will immediately review the matter in detail through official channels with a view to finding a mutually satisfactory solution.

It should also be highlighted that on Monday evening changes were made to the Act on the Depositors’ and Investors’ Guarantee Fund strengthening the position of depositors by giving them priority when allocating assets. Read the full story

According to Icenews sources, a major announcement can be expected early Monday and MBL.is just reported that Icelandic government officials, representatives of the confederation of Icelandic employers and major trades unions, banking chiefs and other stakeholders met to discuss the economic situation with the Icelandic Prime Minister Geir Haarde.

Shortly after that meeting finished,  Larus Welding, Thorsteinn Mar Baldvinsson and Oskar Magnusson from Glitnir bank arrived, and soon after that, the rest of the Icelandic government. MBL.is reports.

According to sources, major funds owned by the big Icelandic pension funds and the banks are to be moved back to Iceland to help strengthen the economy and help build a strong foundation of foreign currency at the Central Bank of Iceland.

Last Monday in Reykjavik, Iceland’s Prime Minister, Geir H Haarde, met with Finnish Prime Minister Matti Vanhanen, to discuss various issues including changes in the world economy, according to reports by the Finnish news agency STT.

Iceland and Finland have many economic similarities according to Mr Vanhanen. He said that the two countries are both connected through their common concern for increasing food and energy prices. In addition to these problems, Iceland also faces a soaring inflation rate, which was at around 11 per cent in April, but expected to drop sharply.

Following the meeting of the two leaders, Mr Vanhanen said: “Nevertheless the basic elements in their public sector are very strong.”

Both Iceland and Finland also share concerns about Russia. During their meeting last week, Mr Haarde discussed unexplained Russian flights near Iceland with Mr Vanhanen who, in turn, shared his country’s experience with airspace violations.

In mid March, Mr Haarde commented to the media about the increased presence of the Russian Air Force in the North Atlantic, near Iceland.

“We have not seen much increased naval activity. There have been some exercises but there has been more aviation activity,” Mr. Haarde said. “They have been sending their Bear (bomber) planes more frequently than they used to. They used to do it all the time during the Cold War but then it stopped,” he said.

Mr Vanhanen visited Iceland for two days last week on an official visit.