Left-Right Government
This coalition government stuff still evades me a bit, but as has been explained to me a few times, and is now becoming rather apparent to me, Iceland had a weird government before the collapse two months ago. It was a coalition formed between the largest party, very fiscally conservative and business friendly, and the second largest party, which was socially progressive and pro-government. We Americans are used to this, would imagine such an arrangement would basically ensure a sort of level headed, compromise approach to most matters. But instead it seems the liberal party let the conservative party do whatever it wanted domestically, while it concentrated on foreign affairs. Or what do I know, I wasn't here. But the changes to the financial system here were the ideas of the conservative party, and they were implemented with a vengeance.
With the upcoming election, there is the opportunity for a truly left-centric government, if the social progressives and the Green party form a coalition. But the conservative party does not seem likely to loose the majority it has held in Iceland for 18 years just like that, overnight, since it has a well organized base and operators everywhere. So I would not discount other options.
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