Iceland's interim coalition government has won Saturday's general election, according to reports reaching  Stockholm from Reykjavik early morning on Sunday.

The Social Democratic Alliance, headed by Prime Minister Johanna Sigurdardottir, has captured about 31.9 percent of votes, while its coalition partner, the Left Green Movement, has taken 20.9 percent of votes, showed the early results based on 55.6 percent of ballots counted.

Iceland's Prime Minister Johanna Sigurdardottir answers questions at a news conference with foreign news media in Reykjavik April 25, 2009. Icelanders voted on Saturday in an election likely to give a historic win to the minority centre-left caretaker government that stepped in after protests over an economic crisis toppled the previous administration.[Xinhua]

So the two parties would hold an absolute majority in the new parliament and can continue to govern the country.

"The nation is settling the score with the neoliberalism, with the Independence Party, who have been in power for much too long. The people are calling for a change of ethics. That is why they have voted for us," the 66-year-old Prime Minister Sigurdardottir was quoted as saying to cheering supporters.

Though heading for an outright parliamentary majority, the new government would face tough decisions to cut spending, raise revenues and find ways to reduce surging unemployment, said analysts in Reykjavik.

The Independence Party, resigned in January after 18 years in power, has only won 23.4 percent of votes, much lower than the previous election in 2007.

The Social Democratic Alliance and the Left Green Movement took office in February after public protests about Iceland's economic collapse.

(Xinhua News Agency April 26, 2009)