Iceland vote threatens coalition

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Iceland's centre-right coalition government has won a majority of just one seat in general elections.

The government of Prime Minister Geir Haarde now hangs in the balance.

His Independence Party gained three seats, winning a total of 25. But its coalition partner, the Progressive Party, lost five of its 12 seats.

The Independence Party could start talks with other parties to form a stronger coalition rather than try to govern with such a slim majority.

Icelandic politics, as in the rest of the Nordic region, is based on coalition building.

The election was dominated by the strong growth of aluminium smelting in Iceland, which was opposed by the centre-left and environmentalists.

The ruling coalition wanted aluminium giants to keep building the smelters.