Situation in Iceland is getting worse every day.
PM is out; fish exports are down sharply because of lack of buyers - partly lack of credit by European importers, partly economic collapse in eastern and southern Europe - this could crush any prospect for short term recovery.
Larger protests every day, with pattern of escalation - torches and teargas stage right now.
After violence earlier this week the protest organiser asked people to go home so that weekend drinking wouldn't lead to the situation getting out of hand tonight.
So, it is quiet tonight in Iceland.
But tomorrow is protest saturday.
Economic forecast I saw, suggests 9% decline in nominal GDP and 13% inflation in 2009, so an effective decrease of 20-25% in economic activity.
8% unemployment is predicted, which seems a bit low. Over 1% of the nation has emigrated (to Europe mostly) in the last 3 months or so.
Tip of the Iceberg - kos summary of current Icelandic political situation
The PM has cancer and is stepping down. There will be elections in May.
Expect the Independents (conservatives) to be crushed, probably lose half their support; and their coalition partners Popular Front (Center Left) to be lose comparably, unless they have an internal party revolt pronto. Progressives (conservative agrarians) have done some internal party changes and could go either way depending on pro or anti EU sentiment; big winners are likely to be the Left-Green alliance.
Minister of Education, Þorgerður Gunnarsdóttir will take over as acting PM.
Leader of the other governing coalition party, foreign minister Ingibjörg Gísladóttir has a benign brain tumour.
Not a good time to be leaderless.
- Log in to post comments
Geez man, that's a lot of tumors at one end of the governing body. Since I take it you dwell there I wish you the best. Perhaps you can train cats to defend your home and forage for food, even if herding isn't quite in the realm of doable at this time.
nah, I'm in the US now
most of my family is in Iceland
there will be food in Iceland, just a bit monotonous,
but I can see situations where they are reduced to barter for a while
trade fish for pasta, olives and wine - worked pre-war
not the most efficient
Mmh, I wonder if there are any parallels to the Argentine economic collapse around 2000-2001?
Obviously very different countries, but perhaps there are parallels economically speaking?
Are there people on the streets banging pots and pans calling for the resignation of *all* politicians? Is the leader of Iceland about to leave the goverment palace in a helicopter??
I gather that the situation in Iceland is not as bad as it was in Argentina in 2001 (yet).
http://en.wikipedia.org/wiki/Argentine_economic_crisis_(1999-2002)
Have been reading Iris Erlingsdottir's reports at the Huffington Post, & the excellent wikipedia entry on the Iceland economic collapse.
If the foreign debt really is 50 billion euros, and the GDP <20 billion dollars, that's an unbelievably deep hole.
Please keep posting updates on this.
... GDP is 10--20 B dollars (depending on the exchange rate), I don't see how they can pay the debt.
[Not sure why that comment got cut off. Perhaps we can blame my cat.]
What do you think about the new PM, Johanna Sigurdardottir?
As a side note, I believe she's the first openly gay person to head a modern national government.
yes, she is gay living with a partner (can't remember current Icelandic law, but it'd be a common law marriage)
this was such a non-issue in Iceland that it took a couple of days for the media to remember and to make an issue of it - as a "first" for Iceland, not as an issue in and of itself
she had a good reputation as social/education/culture minister - if I recall correctly, when the government asked for priority lists for IMF mandated cuts she is the one who sent back a short answer: "No".
sounds like she will be Prime Minister until the election in May, current polling would imply the Left-Green alliance taking largest share so they'd then take over PM position.
But the political situation is very volatile right now.