Times: Credit crunch claims Iceland government

The global economic crisis claimed its first government yesterday when Iceland’s ruling coalition collapsed amid a cacophony of popular protest. The Government resigned en masse after days of mounting anger over the country’s financial meltdown. The protests, which began peacefully after the nationalisation and overnight bankruptcy of Iceland’s three main banks, turned violent last week with the nation experiencing its worst riots in 60 years. At their height 32,000 people — more than 10 per cent of Iceland’s population — took to the streets of Reykjavik banging pots and pans in what came to be known as the “Household Revolution”. Jubilant protesters celebrated outside Iceland’s parliament yesterday after news of the Government’s fall. The country’s future looks far from secure, though.