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Iceland Government Collapses Due to Economic Crisis

HeadlineJan 27, 2009

Fallout from the global economic crisis continues to be felt across the world. Iceland’s coalition government collapsed Monday after weeks of protests by Icelanders upset by soaring unemployment and rising prices. Protesters hurled eggs at the car of Iceland’s Prime Minister Geir Haarde and banged cans on the car’s roof. Iceland has been in an economic crisis since September, when three of its largest banks collapsed, and the value of its currency plummeted. Meanwhile, demonstrations are threatening other European governments. Riots were seen in Latvia after the government pushed through wage and spending cuts. Major protests were also held in Lithuania. In the Spanish city of Zaragoza, tens of thousands of people took to the streets last week to protest soaring unemployment.

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