REYKJAVIK (Reuters) - Iceland's president called on the social democrats, junior partner in the outgoing coalition, to form a new government with opposition parties on Tuesday to tackle a crisis that has abruptly shattered decades of rising prosperity.
Prime Minister Geir Haarde resigned on Monday after his Independence Party's coalition with the Social Democratic Alliance (SDA) collapsed under pressure from mounting public anger and sometimes violent protests. In so doing, he won the distinction of becoming the first leader to fall as a direct result of the global economic crisis.