Protesters march under an Icelandic and EU flag on Austurvoellur square, across from the Icelandic parliament, in Reykjavik earlier this month, after the government announced plans to withdraw the country’s application for EU membership. Photograph: Anton Brink/EPA

Áramótaskaupið is possibly the most popular television show in the world. Viewing figures for the annual skit – the name roughly translates as “New Ye(...)

Progressive Party chairman Sigmundur David Gunnlaugsson (left) and Independence leader Party Bjarni Benediktsson. A coalition government formed by the two parties is the most likely outcome of Saturday’s election in Iceland, according to political science professor Olafur Hardarson. Photograph: AP Photo/Brynjar Gauti

Iceland’s centre-right parties yesterday began talks to form a new government, promising to end years of austerity and provide debt relief to h(...)

Chairman of Iceland’s Independence Party Bjarni Benediktsson. Iceland’s recovery from economic collapse is much weaker than the government proclaims, and a major debt writedown will be needed before crippling currency controls can be lifted, the country’s likely next leaders told Reuters. Photograph: Reuters/Balazs Koranyi

Icelanders go to the polls on Saturday. The outcome of their second general election since the financial collapse of 2008 will be of interest t(...)