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Iceland government survives vote

Iceland's government has narrowly survived a no confidence vote as the ruling coalition held firm.

Wednesday night's vote was a first test for the government following a weekend referendum in which voters rejected a proposed deal to repay Britain and the Netherlands £3 billion for compensating their nationals who lost their savings in the collapse of the online bank, Icesave.

The government won the vote by 32 to 30.

The government is formed by the Social Democratic Alliance and the Left Green Movement. One Left Green member voted against the government, protesting against its application to join the European Union.

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