Reykjavik  - Talks to form an interim left-leaning government on Iceland continued Friday as the country was offered the prospect of speedy membership in the European Union.

The Social Democrats were this week given the task of forming an interim government with the Left-Green Movement. This came after mass protests forced the collapse of the government led by the conservative Independence Party and including the Social Democrats.

In addition to agreeing on a date for early elections, an interim government will need to set out a course for Iceland's stance to the European Union.

The Social Democrats have supported EU membership while the Left- Greens have opposed such a move.

The Independence Party appears to have softened its traditional scepticism to the EU in the wake of the global financial crisis, which has battered the country of 320,000 people. Unemployment is rising sharply, and the economy is facing a severe contraction.

Earlier Friday, EU officials in Brussels said Iceland could likely count on a speedier membership process since it enjoys full access to the EU's internal market through the European Free Trade Association and the European Economic Area, and also complies with most EU laws.

"This means that it would have a lot less homework to do than other applicants from Eastern Europe. Its membership bid would be faster," Krisztina Nagy, spokeswoman of EU Enlargement Commissioner Olli Rehn, told Deutsche Presse-Agentur dpa. (dpa)