Panama Papers: Iceland's PM is pressured to resign

Panama Papers: Iceland's PM is pressured to resign

Story highlights

  • President to speak to ruling parties before he considers request to dissolve parliament
  • Prime minister has called for early elections if coalition partner doesn’t support his government
  • Prime minister under fire after leaked documents revealed alleged ties to offshore company

Reykjavik, Iceland (CNN)[Breaking news update, 9:50 ET]

Iceland’s President Olafur Ragnar Grimsson will not consider Prime Minister Sigmundur David Gunnlaugsson’s request to dissolve parliament until Grimsson has spoken to both parties in the governing coalition, he told Iceland’s national public service broadcaster RUV on Tuesday.
Gunnlaugsson earlier said he would call for fresh elections if lawmakers from his coalition partner did not support his government amid fallout from the so-called Panama Papers leaks.
[Original story, published 9:39 a.m. ET]
Iceland’s embattled Prime Minister Sigmundur David Gunnlaugsson says he will dissolve parliament and call for fresh elections as soon as possible if lawmakers from his party’s coalition partner do not support his government.

    Gunnlaugsson, who made the statement Tuesday on his Facebook page, has been under intense pressure to resign since leaks from the so-called Panama Papers revealed alleged links to an offshore company with holdings in Iceland’s collapsed banks, triggering mass protests in the capital.
    Critics said the revelations in the leaks have shattered public confidence in his leadership and could affect the country’s international reputation.
    On Tuesday, Gunnlaugsson met with President Olafur Ragnar Grimsson at the latter’s residence, Iceland’s national public service broadcaster RUV reported.