Iceland’s prime minister resigns after poor election result

Iceland’s prime minister announced on Sunday that he would resign, as the insurgent, anti-establishment Pirate Party capitalised on a wave of anger over corruption to come in second in the country’s general election.

The prime minister, Sigurdur Ingi Johannsson, announced his departure on national television after his centre-right Progressive Party saw its share of seats in the 63-seat Parliament collapse to eight, from 19 in the previous election in 2013.

Johannsson's predecessor as prime minister, Sigmundur David Gunnlaugsson, was forced from office in April amid accusations of conflicts of interest after revelations in leaked documents, known as the Panama Papers, of the hidden wealth of the country's elite.

The conservative Independence Party, which has been in a governing coalition with the Progressives, came in first with 21 seats, up from 19 in the last election. But the big winner on the night was the four-year-old Pirate Party, which took 10 seats, more than tripling its showing of three seats in the last general election. The Left-Green Party also won 10 seats. The parties tied for second place in the number of parliamentary seats won.

The left-leaning parties – the Left-Greens, the Pirates and two allies – won 27 seats, just short of the 32 required to command a majority in Iceland’s parliament, the world’s oldest.

The liberal Regeneration Party, which is expected to play the role of kingmaker in the horse-trading following the election, has ruled out joining a coalition with the current governing establishment parties. This could mean that left-leaning parties could potentially form a ruling coalition.

While the conservative Independence Party made gains, "it is not a return to the status quo," said Andres Jonsson, a political consultant. To form a government, the party will have to extend its hand to smaller, more rebellious groups, he said.

"The traditional party system has been disrupted," Jonsson said. "We are not seeing big movements of people who feel that they are able to relate with the messages of the big coalition parties. Changes are going to come from the outside, not from inside the old parties." – (New York Times)