Government steps down

On 26 January 2009 Iceland’s ruling coalition government stepped down after the resignation of the commerce minister on 25 January. The minister resigned in response to protests that culminated on 24 January when between 6,000 and 7,000 demonstrators, organized by the Voices of the People Movement, gathered outside the Parliament building in Austurvöllur square, demanding that the government step down due to the financial crisis in the country. The protest, while peaceful, illustrated the increase in tensions after the collapse of Iceland’s currency and financial systems in October 2008. The prime minister also stated that he will resign and call for a snap election -- potentially slated for early May 2009 -- however, demonstrators have demanded a new government immediately, alleging mass corruption within the current administration. Additional protests were also reported in Akureyri and in the Mývatn region in the northeast as well as in Ísafjördur in the West Fjords and Egilsstadir in the east. Protests also took place on 25 January in downtown Reykjavik.