Iceland suspends EU talks as key election approaches

REYKJAVIK (REUTERS) - Iceland's coalition government has suspended talks to join the European Union as the country approaches an election in April that could decide the future of the negotiations.

The government, formed by the Social Democrats and the Left-Green Party and lagging in opinion polls, said in a statement no talks on new policy areas would be opened.

Negotiations under way would continue, but no decisions would be made.

The Social Democrats support EU entry, but the Left-Greens are against. They overcame differences on the issue and began EU talks after taking office in 2009 in the wake of a crisis when the top three banks collapsed.

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