WORLD> Europe
Iceland to announce formation of new govt this weekend
(Xinhua)
Updated: 2009-02-01 13:30

STOCKHOLM -- Two parties in financial crisis-hit Iceland said Saturday they were going to announce the formation of a new center-left government this weekend, according to reports reaching here from Rekjavik.

"The new coalition government will probably not be appointed until Sunday," Prospective Prime Minister Johanna Sigurdardottir of the Icelandic Social Democrats and chairman of the Icelandic Left-Greens Steingrimur J. Sigfusson announced at a joint press conference on Saturday noon.

"Some indecision was involved in formation talks yesterday," Sigurdardottir was quoted by the Icelandic newspaper Morgunbladid as saying, adding that the Progressive Party needed more time to review the issues.

She emphasized that Steingrimur and she had a very good meeting with the chairman of the Progressive Party on Saturday morning.

Sigurdardottir expected them to complete this matter on Saturday so that they can appoint a new government on Sunday, saidthe Morgunbladid.

Iceland's former Prime Minister Geir Haarde from the Icelandic Independence Party said on Jan. 26 that talks between the coalition partners in his government broke down and the government had to resign immediately. Before that, many protests, which eventually turned violent, were breaking out for a few weeks in Iceland.

The next general election is to take place in 2011, but Haarde has been under increased pressure as a result of his country's ongoing economic crisis. Iceland's economy is expected to decrease by 10 percent in 2009 following the collapse of the country's currency and financial system last October.