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Centre-left wins Iceland election Centre-left wins Iceland election
(about 4 hours later)
Iceland's interim centre-left government has won a resounding victory in early parliamentary elections, preliminary results show. Iceland's interim centre-left government has won a resounding victory in early parliamentary elections.
With more than 80% of the vote counted, the coalition secured 34 seats in the 63-member parliament - its first ever parliamentary majority. The coalition secured 34 seats in the 63-member parliament - an increase of seven MPs from the previous election.
Iceland has been one of the countries most dramatically affected by the global economic crisis. Iceland's centre-right government resigned in January amid mass street protests following the country's economic collapse.
The centre-right cabinet resigned in January amid mass street protests. Prime Minister Johanna Sigurdardottir says her priority will be to start negotiations with the European Union.
The Social Democratic Alliance and the Left Green Movement formed a coalition caretaker government in February, under Prime Minister Johanna Sigurdardottir. The Social Democratic Alliance and the Left Green Movement formed a coalition caretaker government in February, under Ms Sigurdardottir.
We lost this time but we will win again later Bjarni BenediktssonIndependence Party leaderWe lost this time but we will win again later Bjarni BenediktssonIndependence Party leader
Ms Sigurdardottir said if the results of Saturday's poll were correct it would be "historic". Ms Sigurdardottir said the results of Saturday's poll were "historic".
"This is the first time that leftist parties will hold a majority. I hope this will be the result," she said. "This is the first time that leftist parties will hold a majority," she said
Ms Sigurdardottir told supporters the nation was "settling the score with the neoliberalism" and with the conservative Independence Party who "have been in power for much too long". She told supporters the nation was "settling the score with the neoliberalism" and with the conservative 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."The people are calling for a change of ethics. That is why they have voted for us," she said.
The Independence party, who was expected to secure 16 seats, conceded defeat. The Independence party, which secured 16 seats, conceded defeat after its worst election results in decades.
Its leader Bjarni Benediktsson said it was clear that his party had lost the trust of voters. Its new 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."We lost this time but we will win again later," he said.
Professor Olafur Hardarson of the University of Iceland said the elections were also historic for other reasons - it resulted on both the highest number of first time MPs - 27 in total - and the highest number of women in parliament since voting began in Iceland in 1874.
EU debateEU debate
The economic crisis led to widespread public angerThe economic crisis led to widespread public anger
The two coalition parties will now have to reach an agreement on how to move forward with a European Union application.
Pro-EU Ms Sigurdardottir said it was her priority to start negotiations with the Union to see what deal the country could reach - which would then be put to the nation in a referendum.
However, the Left Green Movement - the other coalition partner - remains eurosceptic.
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. 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 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.
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.
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".
However, the Left Green Movement - Ms Sigurdardottir's coalition partner - remains eurosceptic.