Another little-known crisis

The New York Times has an article by Judy Dempsey about an under-reported political situation:

Iceland’s coalition government collapsed Monday, the latest fallout from a global financial crisis that has sparked angry demonstrations against governments across Europe. Prime Minister Geir Haarde said he was unwilling to meet the demands of his coalition partners, the Social Democratic Alliance Party, which had insisted upon getting the post of prime minister to keep the coalition intact. Last week, Mr. Haarde called elections for May, bringing forward a vote originally scheduled for 2011, after weeks of protests by Icelanders angered by soaring unemployment and rising prices. But Mr. Haarde said he would not lead his Independence Party into the new elections because he needed treatment for cancer. Iceland has been in crisis since the collapse of its banks because of massive debt in September and October, with its currency, the krona, plummeting. The country’s commerce minister, Bjorgvin Sigurdsson, quit Sunday, citing the pressures of the economic collapse.
Foreign Minister Ingibjörg Sólrún Gisladóttir, head of the Social Democratic Alliance Party, is expected to start talks immediately with opposition parties in an attempt to form a new government. Ms. Gisladottir said Monday that she won’t seek to become Iceland’s new prime minister, proposing instead another member of her party, Social Affairs Minister Johanna Sigurdardottir. The prime minister, who was also reaching out to potential prime minister candidates, told reporters Monday that he hoped a national government, formed from all of Iceland’s main political parties, could lead the country until the elections.