A new government will most likely be formed by end of this week

According to Morgunblaðið sources a government agreement has almost been completed and the coalition government of the Left Green Alliance, the Independence Party and the Progressive Party will in all likelihood be presented by the end of this week. 

Rúv national broadcasting service reported sightings of MP's making a champagne toast last night. 

The leaders of the three parties are meeting again today to complete the agreement, Morgunblaðið reports. 

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