Reykjavik - Voting began Saturday in the general election in Iceland, one of the country's most ravaged by the global economic meltdown. The current interim government of socialist Prime Minister Johanna Sigurdardottir is favourite to retain power, in coalition with their Green party partners.

The previous government resigned in January, after Iceland's

economy imploded under the pressure of the collapse of three of its over-stretched banks, and mass street protests.

Opinion polls put the red-green coalition on around 57 per cent of the vote. Sigurdardottir became the world's first openly lesbian head of government when she took over as caretaker prime minister.

The financial collapse has forced the tiny north Atlantic country of 300,000 inhabitants to consider applying to join the EU.

The collapse of the country's banking sector led to a plunge in the curreny and an emergency bail-out from the International Monetary Fund.

The big losers in Saturday's election are expected to be the previous party of government, the Conservatives.(dpa)