Iceland forms center-right govt, halts EU talks

The leader of the center-right Progressive Party was chosen as Iceland’s new prime minister Wednesday and promptly announced a halt to talks with the European Union about joining the 27-nation bloc.

Sigmundur David Gunnlaugsson spoke about the policy shift at a press conference after being selected premier.

“The government intends to halt negotiations between Iceland and the European Union,” he said. “We will not hold further negotiations with the European Union without prior referendum.”

Iceland has engaged in on-and-off talks with the EU for several years. Gunnlaugsson’s party has been opposed, in part because members fear that joining would mean giving up control of Iceland’s vital fishing stocks.

The new government will also include Bjarni Benediktsson, head of the conservative Independent Party, who will serve as minister of finance.

Icelanders voted April 27, returning to power the parties who had governed for decades before the 2008 economic collapse, the Independents and the Progressive Party.

The two parties had ruled together from 1995 until the 2008 fiasco. After the collapse of the Icelandic banking sector that year, Icelanders voted in a liberal government led by the Social Democrats and the Left-Greens.

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