BERLIN  Iceland’s coalition government collapsed Monday, the latest fallout from a global financial crisis that has set off angry demonstrations against governments across Europe.

Prime Minister Geir Haarde said he was unwilling to meet the demands of his coalition partners, the Social Democratic Alliance Party, which had insisted upon getting the post of prime minister to keep the coalition intact, The Associated Press reported from Reykjavik, the Icelandic capital.

Last week, Mr. Haarde called elections for May, bringing forward a vote originally scheduled for 2011, after weeks of protests by Icelanders angered by soaring unemployment and rising prices. But Mr. Haarde said he would not lead his Independence Party into the new elections because he needed treatment for cancer.

Iceland has been in crisis since the collapse of its banks because of large debt in September and October, with its currency, the krona, plummeting. The government has negotiated $10 billion in loans from the International Monetary Fund and other countries, but the standard of living for the average person has sunk along with the currency, and the economy is expected to contract by nearly 10 percent this year.