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Faroe Islands

Yearbook 1996

Faroe Islands. A dispute over the Faroe Islands' relationship with Denmark threatened during the year to lead to new elections. The Social Democrats left the government coalition in June because of budget disagreement, cuts in the public sector and decision-making issues. An underlying conflict was that the Social Democrats wanted to see a more independent Faroese relationship with Denmark. At the end of November, the Social Democrats, together with the other opposition, pushed through a constitutional commission, assisted by a political committee, to revise the law governing relations with Denmark. The government coalition with the Conservative Party's Edmund Joensen at the forefront opposed legislative changes. The economic crisis in the Faroe Islands was somewhat mitigated during the year, with about one percentage point reduction in unemployment and a slight increase in fish exports.

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