Iceland Government Resigns

Iceland's Prime Minister Geir Haarde announced the resignation of his entire cabinet on Monday, January 26th. The announcement comes after months of protests and demonstrations in which the Icelandic people accused the current government of leading them to financial ruin.

Iceland's financial system collapsed in October under the weight of debt built up during years of rapid growth.

The currency has since plummeted, with unemployment soaring. The economy is forecast to shrink by 9.6% this year.

The prime minister said he would speak to Iceland's president to formally dissolve the government.

Haarde's intent to resign had been made clear last week when he scheduled an early general election for May 9th. He said because of health reasons, he would not be running for re-election.

Foreign Minister Ingibjorg Gisladottir's Social Democratic Alliance is expected to find a new partner to form a government until the elections can be held. Traditionally, Iceland has tried to stay outside of the European Union, but some sources suggest they could apply for membership within the year.

Although the resignation will further Iceland's short-term economic woes, it will make tourism to the island-nation even more affordable. As of this morning, 1 USD was equivalent to 169 Iceland Kronurs. You know what that means... discounted lodging, cheap spa treatments, and all the rotten shark flesh you can eat.