Iceland's Commerce Minister, Bjorgvin Sigurdsson, has announced his resignation, saying he wanted to take responsibility for the economic crisis. Mr Sigurdsson becomes one of the world's first politicians to step down as a result of the global crisis. On Friday, PM Geir Haarde called an early general election and said he would step down for health reasons. Iceland's financial system collapsed in October under the weight of huge debts built up during years of rapid growth. The country's currency has since plummeted, while unemployment - once close to zero - is soaring. The economy is forecast to shrink by 9.6% this year.
Iceland's Commerce Minister, Bjorgvin Sigurdsson, has announced his resignation, saying he wanted to take responsibility for the economic crisis.
Mr Sigurdsson becomes one of the world's first politicians to step down as a result of the global crisis.
On Friday, PM Geir Haarde called an early general election and said he would step down for health reasons.
Iceland's financial system collapsed in October under the weight of huge debts built up during years of rapid growth.
The country's currency has since plummeted, while unemployment - once close to zero - is soaring. The economy is forecast to shrink by 9.6% this year.
REUTERS - Iceland's coalition government collapsed on Monday under the pressures of a financial meltdown and Prime Minister Geir Haarde said he would hand in his resignation to President Olafur Ragnar Grimsson. "I really regret that we could not continue with this coalition. I believe that that would have been the best result," he told reporters at parliament. Foreign Minister Ingibjorg Gisladottir, the Social Democrat leader who had been considered a potential replacement for Haarde, announced she would not seek to be prime minister and would take a leave of absence for one or two months. Haarde's government, a coalition between his Independence Party and the Social Democratic Alliance, has been under pressure since the global financial crisis hit Iceland in October, causing the collapse of its banks following a decade-long boom fuelled by cheap foreign funding. "I will go to the president and hand in the government's resignation. Then I will have a meeting with the opposition leaders to discuss the possibility of a national unity government," Haarde told reporters.
REUTERS - Iceland's coalition government collapsed on Monday under the pressures of a financial meltdown and Prime Minister Geir Haarde said he would hand in his resignation to President Olafur Ragnar Grimsson.
"I really regret that we could not continue with this coalition. I believe that that would have been the best result," he told reporters at parliament.
Foreign Minister Ingibjorg Gisladottir, the Social Democrat leader who had been considered a potential replacement for Haarde, announced she would not seek to be prime minister and would take a leave of absence for one or two months.
Haarde's government, a coalition between his Independence Party and the Social Democratic Alliance, has been under pressure since the global financial crisis hit Iceland in October, causing the collapse of its banks following a decade-long boom fuelled by cheap foreign funding.
"I will go to the president and hand in the government's resignation. Then I will have a meeting with the opposition leaders to discuss the possibility of a national unity government," Haarde told reporters.
What is the 9.6% compared to? They've had a great run up. 9.6% could just be a blip compared to a recent long trending XY% rise in most statistics. I know that they have invested in infrastructure, recently bringing geo-thermal heat and electricity into great swaths of the country's homes and industry, making an industry of it that they are exporting to the world. was there fraud? did they just get ahead of themselves? what am I supposed to learn from this article except building "... huge debts built up during years of rapid growth...", with no quantifiers to actually learn something from.
These BBC articles should be labeled with a big flashing multi-pointed star, with flashing letters saying "Now~! More Fluff", and "Look; Cool Pictures". Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
