Iceland's center-right Progressive Party asked to form new government

Reuters News
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Posted: Apr 30, 2013 8:25 AM
Iceland's center-right Progressive Party asked to form new government

REYKJAVIK (Reuters) - Iceland's president picked the center-right Progressive Party on Tuesday to lead talks on a new government, which has to boost growth in a country still suffering from a 2008 bank crash and which will likely turn its back on European Union entry talks.

The decision comes after Sigmundur Gunnlaugsson's Progressive Party and Bjarni Benediktsson's Independence Party both won an equal number of seat in elections on Saturday, leaving the country in limbo over which one would lead the new government.

The two parties, frequent coalition partners in past governments, said their first preference was to team up once again after soundly defeating center-left parties in elections on Saturday.

(Reporting by Robert Robertson, writing by Balazs Koranyi)