Country Report Iceland July 1998 Main report

Outlook for 1998-99: Government is likely to be re-elected

The coalition of the Independence Party (IP) and the smaller Progressive Party (PP) did not suffer any anti-incumbent backlash in recent municipal elections, thereby maintaining its excellent chances of re-election in the forthcoming general election to be held not later than April 1999. The coalition has maintained its popularity despite allegations of financial improprieties involving a senior minister. Although this is unlikely to dent the re-election chances of the government significantly, it may well fester throughout the summer recess causing continued embarrassment.

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