Still no clarity on who will form Iceland’s next government

Three days after Iceland’s political parties were told by the President to sort out a new government for themselves, there is still no sign of formal coalition talks getting under way.

After two failed attempts to form a majority government by means of a specific mandate given to party leaders (first the Independence Party, then the Left-Greens), the President announced on Friday that there were would be no third mandate from him and the parties were now responsible for sorting out a coalition amongst themselves.

Though nothing concrete has yet emerged, it is widely expected that the initiative will be reclaimed by the triad of the Independence Party, Regeneration and Bright Future. This was the first of the two groups of parties who tried and failed to form a government after the elections of 29 October.

While fisheries and Iceland’s application to join the European Union (EU) remain major bones of contention between the three parties, the main impediment is thought to be doubts in the leaders’ minds as to whether or not the one-man majority commanded by such a government (32 MPs out of 63) would be sufficient to govern effectively.

It is thought that developments could possibly be expected today.

Exchange rates

USD USD 109.00 EUR EUR 126.00
GBP GBP 143.43 DKK DKK 16.91
NOK NOK 13.31 SEK SEK 12.27
CHF CHF 109.22 JPY JPY 0.99
ISK price of selected currencies, according to the official exchange rate of the Central Bank of Iceland. Updated daily.

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Exchange rates

USD USD 109.00 EUR EUR 126.00
GBP GBP 143.43 DKK DKK 16.91
NOK NOK 13.31 SEK SEK 12.27
CHF CHF 109.22 JPY JPY 0.99
ISK price of selected currencies, according to the official exchange rate of the Central Bank of Iceland. Updated daily.