Reykjavik - A police officer and several protesters were injured when a protest outside Iceland's parliament building overnight turned violent, broadcaster RUV reported Thursday.

Police used teargas to break up the gathering to demand the resignation of the Icelandic government and early elections in the wake of the financial crisis. The police officer was hit by a stone.

Members of the Social Democrats, junior partner in Prime Minister Geir Haarde's coalition, have voiced support for early elections including the influential party caucus in the capital, Reykjavik.

The party leadership has yet to decide on its stance. Matters have been complicated since party leader, Foreign Minister Ingibjorg Solrun Gisladottir, is currently on leave of absence to undergo medical treatment in Sweden.

In a television interview, Haarde said holding elections already in May as some have proposed was a bad idea, citing the ongoing efforts to salvage the economy. Momentum would be lost during an election campaign, he said.

Haarde, elected in 2007, favoured elections in the winter. But RUV reported that there is growing opposition to the premier also in his Independence Party.

Iceland has experienced a wave of protests since October when the country's three banks were nationalized when they faced collapse in the wake of the global credit crunch.

The North Atlantic nation of some 320,000 people is facing a severe contraction of its economy with unemployment due to rise sharply.

Interest rates are at 18 per cent and the country has recently secured a 2.1-billion-dollar bridging loan from the International Monetary Fund. (dpa)