Picking a new prime minister could allow the ruling coalition to remain in power, but the opposition is trying to force a new election with a vote of no confidence in the government, which could lead to a radical political shift.
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He denied wrongdoing and recommended that his deputy, Sigurdur Ingi Johannsson, take over as prime minister for an unspecified period.
Johannsson said Iceland’s center-right governing coalition remains intact despite the turmoil that started Sunday after a massive leak of documents from a Panamanian law firm showed it created offshore accounts for Prime Minister Sigmundur David Gunnlaugsson and his wife.
After handing in his resignation to President Olafur Ragnar Grimsson on Thursday, Gunnlaugsson was confronted with protesters as he left the presidential residence, brandishing red cards at him and chanting: “Elections immediately, we want to vote!” “We are of course hoping this will help bring stability in the political system”, he said.
Gunnlaugsson quit on Tuesday amid mass protests over a hidden offshore account revealed in the “Panama Papers” leak of millions of financial records, becoming the first major political casualty to emerge from the scandal. “Time is on their side and it’s crucial for them to stay in power”, lamented Gyda Margret Petursdottir, a 42-year-old teacher who was one of hundreds who protested against the government outside parliament on Wednesday. “The prime minister has not resigned and will continue to serve as chairman of the Progressive Party”, it said.
Opposition leaders have not been mollified by this plan.
“We are actually waiting for them to decide what is happening, so we don’t really have a voice in the negotiations”, she said.
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The Pirate Party is leading in recent polls.
