Iceland in crisis over controversial media law

Reykjavik, Iceland

Iceland was embroiled in a political crisis on Monday as the country's president appeared poised to veto a media law proposed by the government, a first in the Icelandic republic's 60-year history.

The draft law, which is being angrily debated in Parliament, calls for the break-up of media groups if they concentrate too much power over media in their hands.

Iceland's opposition parties have accused Prime Minister David Oddsson of targeting a single company, the Baugur group, because of a personal grudge he holds against the diversified company's owners.

According to sources close to President Olafur Ragnar Grimsson, quoted by Icelandic daily DV, he is "seriously considering" using his veto power if, as is expected, Oddsson wins backing for his draft law in the Althing, the world's oldest Parliament.

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