Outgoing Prime Minister Sigurdur Ingi Johannsson of the Progressive Party said Sunday he would hand the president his resignation so that a new government can be formed.
Saturday’s election was called after then-Prime Minister Sigmundur David Gunnlaugsson resigned in April during public protests over his offshore holdings, revealed in the Panama Papers leak.
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Gunnlaugsson’s Progressive Party was the election’s biggest casualty, losing more than half its seats in the Althingi as voters punished it for its links to the financial crash and corruption claims.
No party gained a parliamentary majority in an election dominated by public discontent at the establishment after years of financial crisis and political turmoil.
The Independence Party took 29 per cent of the vote and 21 of 63 parliament seats in results announced Sunday. Leader Bjarni Benediktsson said the