Political chaos reigns in the North Atlantic Faroe Islands after Denmark said it would phase out its annual grant to the province if the islanders voted in favour of independence in a referendum scheduled for May.
The referendum was to seek approval for the phased dismantling of the current home rule, leading to the Faroese government taking full responsibility for all its affairs in 2012. Before then a second referendum on formal independence was to have been held.
But opinion polls forecasting a clear No to independence in 2012 prompted Faroese Home Rule Prime Minister, Mr Anfinn Kallsberg, last week to call for the cancellation of the vote. The Conservative leader's proposal was rejected by his coalition parties, plunging the government into crisis.
"There is total political chaos in the Faroe Islands," a Faroese government official said. "The country is in a state of political emergency and there will be no clarification of the situation for the next few days."
The current Faroese government, a three-party coalition consisting of Conservative, Republican and Home Rule parties, came to office in 1998 on a wave of anti-Danish sentiment and made greater home rule powers or full independence its top priority.
In Tuesday`s Copenhagen daily Berlingske Tidende, Faroese Home Rule Affairs Minister, Mr Hogni Hoydal, a Republican, attacked Kallsberg`s attempt to cancel the referendum, demanded that the sovereignty vote be carried out.