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Iceland taps agriculture minister Johannsson as new PM in wake of Panama Papers

Johannsson, 53, said he will seek approval from Icelandic President Olafur Ragnar Grimsson to become the new prime minister.

By Doug G. Ware

REYKJAVIK, Iceland, April 6 (UPI) -- Iceland's ruling parties on Wednesday agreed to name Ingi Johannsson as the country's new prime minister, just hours after David Gunnlaugsson resigned in the wake of the Panama Papers scandal.

Johannsson, Iceland's fisheries and agriculture minister, was chosen to replace Gunnlaugsson at the end of the day Wednesday as a compromise between the former prime minister's Progressive party and the Independence party, which are coalition partners.

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Johannsson, 53, said he will seek approval from Icelandic President Olafur Ragnar Grimsson to become the new prime minister. The two were expected to meet Thursday.

The selection of Johannsson, though, did nothing to satisfy some members of parliament and protesters who gathered outside the main government building in Reykjavic for the third day in a row Wednesday, the Financial Times reported.

"This is completely unacceptable," Pirate party lawmaker Asta Helgadottir said, adding that a vote of no confidence could be coming for Johannsson.

Opponents are also demanding an early general election for the nation of 330,000, which could substantially alter the political landscape in Reykjavik. Recent poll data has shown that the anti-establishment Pirate party holds significant support from voters -- as much as 43 percent, according to a survey conducted by Icelandic media outlet Visir.

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Gunnlaugsson's ouster marked a day of radical change in Iceland's government, just days after the so-called Panama Papers included the former prime minister's name. The papers were leaked to a German newspaper and contained lists of people who kept money or had financial interests offshore.

Tuesday, Gunnlaugsson had resisted calls for his resignation. Wednesday, though, under increased public pressure, he conceded.

Johannsson said Gunnlaugsson would remain as the Progressive party chairman, however.

"We will continue to lead a good government and keep up the good work [of the past three years] . . . I cannot say there will be a big difference," Johannsson said. "We are hoping this will get more stability in Iceland's community."

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