The World : Political Crisis in Iceland

Iceland plunged back into political crisis when politicians reported failure of an agreement made two days ago to form a center-left government to replace a collapsed center-right administration. Foreign Minister Steingrimur Hermannsson told reporters he has dropped his attempt to form a government. However, he said he is prepared to try to form a minority regime grouping his Progressive Party and the Social Democrats. An agreement Friday between those two parties and the Socialist People’s Alliance collapsed when the Socialists presented new conditions over the weekend, he said. The political turmoil, aggravated by an economic crisis, appears to make early elections inevitable. The next election is not due until 1991.