Iceland’s prime minister has married her partner under a new law legalising same-sex marriage in the country, officials said today.

Iceland is pressing Britain and The Netherlands to renegotiate $5.7bn (€3.96bn) owed for lost bank deposits.

Iceland decided today to repay Britain and the Netherlands the billions it borrowed to compensate savers in those countries who lost funds in the collapse of an Icelandic internet bank last year.

Iceland’s new government said it will ask parliament to vote on whether the recession-hit country should start membership talks with the European Union.

Iceland’s leftist coalition today won the country’s general election striking a blow at the pro-business Independence Party that many blamed for the collapse of the country’s banking system.

Iceland is set to appoint the world’s first lesbian prime minister – a former flight attendant who rose through the political ranks to become a cabinet minister.