Iceland’s PM quits over tax haven links exposed in Panama Papers

Iceland’s Prime Minister has stepped down after the Panama Papers reportedly linked him to an offshore company. Sigmundur David Gunnlaugsson earlier requested the President dissolve Parliament and call new elections after the left-wing opposition called a vote of no confidence in the government. But the President, Olafur Ragnar Grimsson, refused, saying he wanted to consult the main parties before making his decision, so Mr Gunnlaugsson quit.

I do not think it is normal that the prime minister alone… should be given the authority to dissolve the parliament without the majority of the parliament being satisfied with that decision.

President Olafur Ragnar Grimsson

The Panama Papers leaked from law firm Mossack Fonseca are said to show Mr Gunnlaugsson and his wife owned a firm in the British Virgin Islands which held £2.8m of investments in the country’s collapsed banks. Thousands of demonstrators protested outside parliament in Reykjavik on Monday, throwing eggs, bananas and yoghurt and calling for him to stand down. He told parliament he and his wife have paid all their taxes in full and he denied having assets in a tax haven. Gunnlaugsson also said there was nothing new in the information contained in the Panama Papers data leak.

Gunnlaugsson