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Iceland Names PM amid Panama Fallout

Iceland Names PM amid Panama Fallout
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Local Editor

Iceland's ruling coalition named Sigurdur Ingi Johannsson as the new PM, with early elections to be held in the autumn.

Iceland Names PM amid Panama Fallout

Johannsson, 53, is agriculture and fisheries minister and deputy leader of the Progressive Party [PP].

The move comes after PM and PP chairman Sigmundur Gunnlaugsson stepped down in the wake of the leaked Panama Papers.

The leaks, from Panama law firm Mossack Fonseca, showed Mr Gunnlaugsson owned an offshore firm with his wife.

It was not declared when he became an MP. Gunnlaugsson said he sold his shares to his wife and denies any wrongdoing. But he is accused of concealing millions of dollars' worth of family assets.

Gunnlaugsson is one of dozens of high-profile global figures mentioned in the 11.5 million leaked financial and legal records, which were first published on Sunday.

Pressure on Gunnlaugsson to step down had been building since then, with thousands of people protesting outside the parliament building in the capital Reykjavik on Monday and opposition parties tabling a confidence motion.

Earlier on Tuesday, Gunnlaugsson had asked President Olafur Ragnar Grimsson to dissolve parliament and call an early election, although the president said he would need to talk to parties.

But later on Wednesday, Johansson said: "We expect to have elections this autumn," adding that in the meantime the government had work to do.

Pirate Party leader Birgitta Jonsdottir also told reporters in parliament that early elections would be held in the autumn.

Gunnlaugsson has put out a statement insisting he has not in fact resigned and that Johannsson will take over the post "for an unspecified amount of time".

In his statement, Gunnlaugsson said he had no wish to stand in the way of further government work, such as reform of the financial system.

Source: News Agencies, Edited by website team

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