The party also decided that a large number of projects should be transferred from state level to local municipalities.

The Social Democrats’ national conference ended yesterday and one of the final acts the delegates took was to approve the party’s political declaration of intent. The document states that the main tasks for Icelandic politics today are to ensure employment, welfare and equality, RUV reported.

On the economic front, the document says that solutions to household and business debt problems are the most important issues and that financial companies should speed up the process of debt restructuring, even though the facility to write off debts completely is currently fully utilised.

The party also decided that the best way to improve the welfare system and general living standards will be to increase the level of local authority involvement in matters currently dealt with at a national level: issues in the areas of elderly care, healthcare, economic development, health and safety monitoring and transport, among others.

According to the Social Democrats, another of the most important stages of Iceland’s recovery will be its entry into the European Union — and to that end, the party’s document praises the proposed changes to the EU’s fishing and agriculture policies because they would make Iceland’s accession negotiations easier than under current regulation.

The 71 percent figure comes from a new poll conducted for Morgunbladid and interestingly reveals that more people support the coalition than voted for it. The Best Party received 34.7 percent of votes and the Social Democrats 19.1 percent, which is 53.8 percent of votes in total. The new council is converting doubters and making the most of its honeymoon period.

Women are more likely to support the city coalition with 74 percent against 68 percent of men. 85.3 percent of all 18-24 year-olds support the coalition.

680 people took part in the poll, 87 percent of whom chose to answer the question of whether or not they support the new Reykjavik coalition.

A statement from the politician says that she will hand her resignation letter to the President of Althingi when the parliament next meets on Monday.

Oskarsdottir has been under increasing pressure to resign after revelations that she accepted large corporate donations for her election campaign in 2006.

The statement says that she wishes to apologise to her voters for having conducted her campaign in such a manner and that she takes full personal responsibility.

Photo: Visir.is

Members of the Progressive Party met with Norwegian parliamentarians earlier in the week to discuss, among other things, the idea of Norway lending Iceland a sizeable chunk of money. The amount under discussion is up to NOK 100 billion, which is ISK 2,200 billion.

Representatives of the Norwegian Centre Party, one of three members of the coalition government and sister party to the Progressives in Iceland, are said to be enthusiastic about the idea. The Labour Party of Prime Minister Jens Stoltenberg is, however, less enthusiastic.

Johanna Sigurdardottir sent Stoltenberg a letter on Monday asking if such a loan would likely be offered to Iceland. Stoltenberg responded on Thursday saying that it is not likely. The issue has not been discussed within the Norwegian government.

Sigurdardottir told Visir.is is that Stoltenberg’s letter was categorical. “It was made clear that the Norwegians are well-intentioned towards us, but their official position remains that the money they loan Iceland will be part of the Nordic loan offered within the IMF package and they do not intend to change that,” she said.

Leader of the opposition Progressive Party, Sigmundur David Gunnlaugsson accused Sigurdardottir of having asked for such a response from Stoltenberg. He said that the Norwegian Labour Party was looking to her Social Democrats for support in the issue and would be guided by them in its position. But as the Social Democrats wish to continue with the IMF package, the Labour Party has not offered its support to the Progressive and Centre Parties’ plan.

“That is a preposterous claim and I don’t know how they imagine I could just order up a conclusion from the Norwegian Prime Minister. Absolutely ridiculous. It is also absurd that I would try to block a condition-free loan to Iceland.”

Since this news first broke, the Icelandic Prime Minister’s office has decided to release the PM’s initial email and Stoltenberg’s response to the public. They can be viewed translated into Icelandic here, and in Norwegian by clicking the two links at the bottom of that page.

The party’s deputy leader, Katrin Jakobsdottir confirmed that Sigfusson will attend the meeting if his flight is not delayed. She said that the continuation of the current government will almost certainly be discussed, but that she expects everybody to be in a reconciliatory mood, Eyjan.is reports.

Disquiet has been growing in the Left Green party in recent weeks and months and came to a head with last week’s resignation of Health Minister Ogmundur Jonasson. Most Green MPs remain publicly supportive of the present government however; and it is not considered likely that the rebels will gain the upper hand at today’s meeting.

Jonasson said after the meeting that although he has resigned as a minister, he will carry on his duties as a Member of Parliament. He is an MP for the Left Green Party, led by Minister of Finance Steingrimur J. Sigfusson.

Jonasson said that despite his resignation from the Cabinet, he hopes the current government remains in power as long as possible and that it will bring the successful resolution of the ongoing Icesave dispute to the very top of its parliamentary agenda. “The whole time, I have felt that the Icesave issue and the survival of this government are separate issues,” he told Visir.is.

Jonasson continued that he has no idea who will take over his ministerial role yet, before reasserting the importance of the Icesave issue: “I had hoped we would continue our work before the summer holiday when this huge issue was being dealt with separately from all other party political matters.”

According to mbl.is sources, the non-MPs, Ragna Arnadortir and Gylfi Magnusson will retain their posts as Minister of Justice & Ecclesiastical Affairs and Minister for Business Affairs, respectively. Johanna Sigurdardottir will be Prime Minister, Ossur Skarphedinsson will be Foreign Minister and Kristjan L. Moller will be Minister for Communications.

Steingrimur J. Sigfusson will head up the Ministry of Finance, Katrin Jakobsdottir will be Minister for Education and Ogmundur Jonasson will be in charge of Health.

Arni Pall Arnason, Social Democrat regional leader in the Southwest, is expected to become the new Minister for Social Affairs and Social Security, while Katrin Juliusdottir will be Minister for Energy, Industry and Tourism.

The new Minister for the Environment will be Svandis Svavarsdottir and Jon Bjarnason will take charge at the Ministry for Fisheries and Agriculture.

Asta R. Johannesdottir and Kolbrun Halldorsdottir will not participate in the new cabinet, according to mbl.is sources.

A meeting of the Left Green Movement parliamentary group finished a short while ago and now members are sitting in a meeting to come to a final agreement on the make-up of the new ministries.

The current plan appears to call for a cabinet reshuffle in the New Year in relation to next year’s budgetary requirements. At this stage it seems likely that industry, fisheries and agriculture will be merged into one “Ministry for Employment”.

In that circumstance, the Ministry for the Environment would be strengthened to take charge of the Ministry of Industry’s work with natural resources. At the same time, the Ministry for Commerce would also take charge of economic matters currently being taken care of by the Prime Ministry.

Together the parties hold 34 seats in the 63-seat Althingi parliament, meaning a comfortable majority. Despite this, the Independence Party are actually the second largest party in parliament with 16 MPs – two more than the Left Greens.

According to leaders of the probable continuing government parties who met yesterday at Prime Minister Johanna Sigurdurdottir’s Reykjavik house, financial issues are at the top of their joint agenda. Frettabladid reports that party leaders and deputy leaders resolved to meet several more times over the next few days before formally announcing the formation of a government.

Iceland elects its politicians using a system of proportional representation, meaning that voters choose to support a party and its pre-arranged list of candidates who will receive seats in order, depending on the party’s share of the vote. Voters are, however, welcome to cross out candidates for the party they vote for on their ballot papers. If a lot of voters cross out the name of a candidate in their preferred party, that candidate will slip down the list.

According to Frettabladid, crossings-out were very common in Reykjavik on Saturday and it will be decided today the effect this will have on the make-up of the next parliament. Independence Party candidate for the South Iceland constituency, Arni Johnsen will, in all likelihood, be forced from first on the list to second. If this happens he will not lose his seat, as his party received three MPs in the South.

The importance of Saturday’s election did not go unnoticed in the wider world, with more foreign journalists covering the event than ever before. There were plenty of journalists from the Nordic countries, elsewhere in Europe and the USA. A major Japanese television station also sent a crew and the UK arm of the Arabic Al-Jazeera network broadcast live from Reykjavik.

Photo: Mbl.is/Ómar

Support for the Social Democrats came out at 29.4 percent, followed by the Left Green Party on 27.2 percent and the Independence Party with 25.4 percent.

The level of support for the three main parties remains similar to the last poll, the results of which were released just over a week ago. Support for the Progressive Party has reduced to 10.7 percent, however.

Furthermore, 60.6 percent of respondents approve of the current interim minority coalition government.

The latest poll was compiled from online and telephone survey results which Capacent Gallup carried out between 25 and 31 March. Internet respondents were chosen from the database of people who have registered with Capacent Gallup, and the telephone respondents were chosen at random from the National Registry, mbl.is reports. The sample group was comprised of 2,451 people aged 18 and over. 61.1 percent decided to take part in the survey.

The popular television journalist turned political activist Omar Ragnarsson formally announced Friday evening that his Iceland Movement political party has become part of the Social Democrats.

The Iceland Movement contested the 2007 election on an anti-heavy industry platform following widespread public anger at the construction of a new aluminium smelter in East Iceland, but failed to receive the five percent support necessary for entry into parliament.

Ragnarsson said in his speech that equal rights and socialism will be the main priority of his members within the Social Democrats. “Equal rights must also prevail between generations. Our freedom cannot deprive the next generations of their freedom,” he said.

The party has also reconfirmed its desire to continue governing after the election with “our friends” the Left Green Party, mbl.is reports.

At the Independence Party conference, the party chairman (until today) and former Prime Minister Geir Haarde gave a speech apologising for his part in the “serious mistakes” made in privatising the banks six years ago.

According to Haarde, if the Independence Party government of the time had not rescinded on its dispersed ownership plan for the banks, no parties would have been able to accumulate the power that eventually brought the system to its knees.

In the same speech, Haarde said he still hopes Iceland will hold a referendum on whether to start negotiating for European Union membership; and a second referendum to decide if the country should then make a formal application.

Despite “some temporary resistance”, Haarde said the Independence Party is currently in good shape. In fact both party conferences are well-attended and being followed closely in the media.

Both parties are also holding leadership ballots at their conferences, with both Geir H. Haarde and Ingibjorg Solrun Gisladottir stepping down for health reasons. IceNews will, of course, bring you all the names and conference news that matters.