LONDON (MarketWatch) -- Icelandic Prime Minister Geir Haarde on Monday said his coalition government collapsed amid the strains of an ongoing economic crisis. "I really regret that we could not continue with this coalition. I believe that that would have been the best result," Haarde told reporters. The announcement came after talks between coalition partners broke down. Haarde said he would ask Iceland's president to formally dissolve the government, reports said.