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Iceland holds parliamentary poll Iceland holds parliamentary poll
(about 12 hours later)
Voting is under way in early parliamentary elections in Iceland, one of the countries most dramatically affected by the global economic crisis. An early parliamentary election has been held in Iceland, one of the countries most dramatically affected by the global economic crisis.
The small North Atlantic nation has a population of only 300,000.The small North Atlantic nation has a population of only 300,000.
But it had to take a $10bn (£6.8bn) rescue package, led by the International Monetary Fund, after its banking sector imploded late last year.But it had to take a $10bn (£6.8bn) rescue package, led by the International Monetary Fund, after its banking sector imploded late last year.
The centre-right government resigned in January after mass street protests and was replaced with an interim coalition.The centre-right government resigned in January after mass street protests and was replaced with an interim coalition.
Challenges aheadChallenges ahead
Voting across the country began at 0900 GMT and was due to end at 2200 GMT. The caretaker government of the Social Democratic Alliance and the Left Green Party took an early lead, according to preliminary vote counts from the electoral committee.
Opinion polls suggest that the two parties in the caretaker government - the Social Democratic Alliance and the Left Green Party - will gain most votes. If their early lead holds out, it would be an electoral rebuke to the leading centre-right Independence Party, which led the government that resigned in January.
If the centre-left parties win as expected, it would be an electoral rebuke to the leading centre-right Independence Party, which led the government that resigned in January. The next government will face many challenges, centred around the economy, the BBC's Nicholas Walton says.
But whoever wins will face many challenges, centred around the economy, the BBC's Nicholas Walton says.
It needs rebuilding, with financial services no longer at its core. Unemployment and the government's ruined finances also need attention, our correspondent says.It needs rebuilding, with financial services no longer at its core. Unemployment and the government's ruined finances also need attention, our correspondent says.
There is also the question of whether or not to apply to join the European Union.There is also the question of whether or not to apply to join the European Union.
In the past, Icelanders felt that they were better off outside the EU.In the past, Icelanders felt that they were better off outside the EU.
But the financial crisis has changed opinions, our correspondent says. Now, many see EU membership or adopting the Euro as Iceland's currency, as part of the solution to the country's problems.But the financial crisis has changed opinions, our correspondent says. Now, many see EU membership or adopting the Euro as Iceland's currency, as part of the solution to the country's problems.