Iceland minister says proposal to make him new PM has been approved by president

Iceland minister says proposal to make him new PM has been approved by president

Iceland's fisheries minister says the president has approved a proposal that makes him Iceland's new prime minister.

Sigurdur Ingi Johannsson has emerged from the presidential residence to tell reporters the news - a development that comes several days after his predecessor resigned after being linked to an offshore account.

Mr Johannsson said getting President Olafur Ragnar Grimsson's backing "is a good thing" that will allow the centre-right governing coalition to continue.

But the coalition faces a stiff challenge in parliament from opposition parties, which are demanding an immediate election after a scandal caused by former prime minister Sigmundur David Gunnlaugsson's use of offshore accounts.

The news came out after a massive leak of financial data involving a Panamanian law firm.

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