Panama Papers: Iceland to Hold Early Elections

Following the release of the 'Panama Papers' and the resignation of Iceland's Prime Minister, the government has elected a new prime minister and is set to hold early elections. Sigmundur Davíð Gunnlaugsson is one of the first senior politicians in the world to resign due to the aftershocks of the 'Panama Papers' release. Sigurður Ingi Jóhannsson has been introduced as the new prime minister on April 6, and elections are expected to take place in early autumn. Reuters reports that it remains unclear whether these actions will alleviate the ongoing protests and social discontent. Thousands of Icelanders have gathered and marched in the streets in recent days. Gunnlaugsson resigned on April 5; according to the 'Panama Papers', which have only recently begun to be released, he is accused of registering a company named 'Winters' in the Virgin Islands with the help of the Panamanian law firm 'Mossack Fonseca', while also engaging in business alongside his government position. Sigmundur Davíð Gunnlaugsson had previously stated that he would not resign from his position. The Icelandic government claims that its decision to hold early elections in the autumn is to provide an opportunity for the current transition in the country's economic situation. Iceland undertook structural reforms in its economy following the economic crises of 2008, when the country was on the brink of bankruptcy. The new prime minister, Jóhannsson, has stated that the government will continue to implement current economic reforms. The Panama Papers are considered to be one of the largest and most extensive disclosures in history regarding politicians, leaders, celebrities, and prominent figures around the world. These documents leaked from a law firm named 'Mossack Fonseca' detail the firm's assistance to global leaders and wealthy individuals in evading taxes by hiding their assets in other countries.