Government Collapses

Fresh elections appear to be the best and most likely outcome, after the three-party coalition government collapsed at the end of May over the alleged use of public funds for personal expenditure by two ministers from the Labour party, the largest in government. Since no party is likely to want to work with Labour, forming a viable coalition from the other nine, smaller parties will be very difficult. The task is made that much harder by recent remarks by the second-largest party in parliament, the conservative Homeland Union, that it would not join a coalition with the Social Democrats, who led the previous administration. Given Labour’s plummeting approval ratings, several parties might prefer to strengthen their positions through new elections.

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