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Geir Haarde - Source: Reuters -
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Iceland's new leaders will get down to business in a special parliamentary session on Wednesday (NZT), but many fear the interim government will have scant time to do much for a shattered economy before elections are held in April.
A new centre-left government was formed on Sunday after former Prime Minister Geir Haarde quit last week, becoming the first leader to fall as a direct result of the global economic crisis and resulting protests.
His successor, Johanna Sigurdardottir of the Social Democratic Alliance, who becomes Iceland's first female prime minister, has said the government's first task was to focus on safeguarding the country's businesses and homes.
But many Icelanders were worried about whether there was enough time to pass the significant reforms needed.
"The new government has many tasks ahead and very short time to complete them before elections," wrote Olafur Stephensen, editor of Morgunbladid, a paper which traditionally has supported the right-wing Independents.
The coalition of the Social Democratic Alliance and the Left-Greens, a party which before last week had little political clout in Iceland, has called for elections on April 25.
Some were guardedly optimistic that the political upheaval meant they were starting on a path to some kind of recovery.
"I'm happy about the change of government if only for the sake of change," said Ragnheidur Thorensen, a 29-year-old nurse. "I don't think they'll be able to do anything new in the next 80 days, but I am hopeful for the future of Iceland."
"Pricey delay"
A spokesman for the Left-Greens said no parliamentary sessions had been scheduled this week, but lawmakers had added a new session on Tuesday so the new government could get moving.
The government said on Sunday it planned to take control of monetary policy decisions for now while it reforms the central bank, an institution largely vilified in Iceland for not averting the crisis. But one area where little immediate progress is expected is the question of whether to join the European Union.
Icelandic daily Frettabladid, which has supported the Social Democrats, said the cost of striking a deal with the more EU-sceptic Left-Greens appeared to be a further delay in embracing the EU.
"This is a pricey delay for the people and companies of this country," wrote Frettabladid editor Thorsteinn Palsson.
Many have warmed to the idea of adopting the euro and ditching the Icelandic crown, a currency that has been volatile for years and forced authorities to keep interest rates high.
But there are still worries that Brussels could harm the local fishing industry, which has now grown in importance as a once-thriving financial sector has disintegrated.
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