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| Version 0 | Version 1 |
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| Crisis claims Iceland government | Crisis claims Iceland government |
| (10 minutes later) | |
| Iceland's coalition government has collapsed as a result of an escalating economic crisis. | |
| Prime Minister Geir Haarde announced the immediate resignation of his cabinet, after talks with coalition partners failed. | |
| Iceland's financial system collapsed in October under the weight of debt built up during years of rapid growth. | Iceland's financial system collapsed in October under the weight of debt built up during years of rapid growth. |
| The currency has since plummeted, with unemployment soaring. The economy is forecast to shrink by 9.6% this year. | The currency has since plummeted, with unemployment soaring. The economy is forecast to shrink by 9.6% this year. |
| In a series of protests, demonstrators have accused the government of leading the country to ruin. | |
| Mr Haarde told reporters on Monday: "I really regret that we could not continue with this coalition. I believe that that would have been the best result." | Mr Haarde told reporters on Monday: "I really regret that we could not continue with this coalition. I believe that that would have been the best result." |
| The coalition between Mr Haarde's Independence Party and the Social Democratic Alliance had been under strain for the past three months. | |
| The prime minister said he would speak to Iceland's president to formally dissolve the government. | |
| Last week Mr Haarde called an early general election for 9 May, adding that he would not stand for health reasons. |