Saturday vote may elect first female prime minister in Iceland

REYKJAVIK, Iceland -- The charismatic mayor of Iceland's capital sought to become the nation's first female prime minister Saturday in a national vote expected to be the tightest in years.

Ingiborg Solrun Gisladottir has campaigned on social issues including welfare, health and housing, which some Icelanders see as neglected by long-serving Prime Minister David Oddsson.

Still, Oddsson has strong economic credentials on his side after overseeing the privatization of industry during his 12-year premiership.

Seven parties are contesting the elections, in which the 200,000-strong electorate chooses lawmakers for the Althingi, the 63-member Parliament.

No party since 1944, when Iceland gained independence from Denmark, has won enough votes to win a majority of seats and form a government on its own. Parties traditionally form a coalition.

But in a quirk of the Icelandic system, the parties that come in second and third can strike an allegiance, excluding from government the party that won the most seats.

Technically, the Progressives could do a deal with Gisladottir's Social Alliance. But Oddsson warned that no government that had excluded the Independence Party -- which has dominated Icelandic politics for almost 60 years -- had lasted a full 4-year term.

Oddsson has the advantage of having provided several years of steady economic growth.

Iceland's $9 billion economy grew by an average of 5 percent for six consecutive years before dipping slightly last year. Inflation and unemployment also remain low, compared to elsewhere in Europe and the Nordic countries.

In addition, the Independence Party is trying to woo voters with a series of personal and business tax cuts.

Many voters clearly believe that Oddsson is the best person to lead Iceland as it diversifies further from its dependency on fishing into power plants and aluminum smelters.

The Social Alliance has pushed a campaign based largely on voter fatigue and a growing awareness that Iceland must do more to prevent a growing gap between the rich and poor in its 280,000 population. Gisladottir has promised to spend more of the country's revenue on housing, education and welfare.

"It is in weather like this that there is a moment to create a change," said Gisladottir, the 48-year-old former mayor of Reykjavik, after casting her vote on a bright, sunny day on the outskirts of the capital.

Her Alliance has also capitalized on criticism that the Independence Party has moved too slowly to reform a complex system of distributing fishing quota licenses, set up in the 1980s, among Iceland's fisheries.

The fishing industry accounts for more than 50 percent of Iceland's economy. Many argue that the quota system is unfair and has led to some companies growing rich while others struggle.

Less successful for the Social Alliance has been its campaign to hold a referendum on whether Iceland should join the European Union.

Oddsson has consistently opposed the idea and Icelanders, wary of surrendering their fishing rights, have also seemed content with the country's position as a member of NATO and the European Economic Area.