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Iceland holds parliamentary poll Centre-left wins Iceland election
(about 1 hour later)
An early parliamentary election has been held in Iceland, one of the countries most dramatically affected by the global economic crisis. Iceland's ruling centre-left government looks set to have won a major victory in the country's early elections.
Preliminary results show the coalition has won 35 of the 63 seats available, its first ever parliamentary majority.
Iceland has been one of the countries most dramatically affected by the global economic crisis.
The conservative Independence party, which resigned in January amid widespread protests over the economy, won 15 seats and has conceded defeat.
The Social Democratic Alliance and the Left Green Movement formed a coalition caretaker government in February, under Prime Minister Johanna Sigurdardottir.
Ms Sigurdardottir said if the results were correct it would be "historic".
We lost this time but we will win again later Bjarni BenediktssonIndependence Party leader
"This is the first time that leftist parties will hold a majority. I hope this will be the result," she said.
Ms Sigurdardottir told supporters the nation was "settling the score with the neoliberalism" and with the Independence party who "have been in power for much too long".
"The people are calling for a change of ethics. That is why they have voted for us," she said.
Independence leader Bjarni Benediktsson said it was clear that his party had lost the trust of voters.
"We lost this time but we will win again later," he said.
EU debate
The economic crisis led to widespread public anger
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.
Challenges ahead
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.
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.
The next government will face many challenges, centred around the economy, the BBC's Nicholas Walton says.The next government 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.
Pro-EU Ms Sigurdardottir said if the country applied immediately for membership it could begin using the Euro "within four years".