Government crisis in Iceland?

The forthcoming elections in Iceland cold be the start of a long and difficult government crisis. This problem has been mentioned here on this site before. Only one party wants to join the EU, and the others just want status quo.

All ideas about adopting a new currency unilaterally are Utopian in its essence.

The current government is made out of two parties. The Social Democratic Alliance and the Left Green. The Left Green do not want the EU, the SDA want the EU. In reality this will have to be settled, most people agree that the matter the EU is a problem that will not go away and will be a breaking point when it comes to forming a working government. The SDA will probably not back down from this matter again. They have done it twice. When working with the Independence party in the ill fated government that fell in January. Then again with the short term government with the Left Green.

What some people fear is that the Left Green and the Independence party will actually form a government. Why should those parties form a government together when the Left Green party chairman declared that they would never work with the Independence party. The common goal of staying out of the EU keeps them in bed together. The enemy of my enemy is my friend could be the mantra for a possible new government.

Others think that the Left Green will back down and agree to start negotiations with the EU, and let the people decide. That is the democratic thing to do. That would guarantee that the present government will keep on working together.

Then the SDA could back down. All in order to stay in office, and keep power for themselves.

The IMF is still refusing to pay up the second part of the loan to Iceland for the simple reason that there is political uncertainty and no clear direction in financial mattes.

The situation is both tricky and very dangerous for Iceland.

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