Iceland’s Prime Minster has pledged to hold snap elections if he loses the confidence of his coalition partners amid mounting anger over his links to offshore banking.
Sigmundur Davíð Gunnlaugsson was among world leaders named in the Panama Papers – a huge cache of leaked files naming individuals linked with a law firm specialising in shell companies.
He denied any wrongdoing following the revelations and defied calls to resign as thousands of people protested outside the country’s parliament building.
But in a statement on Tuesday, Mr Gunnlaugsson said he would dissolve parliament and call elections “as soon as possible” if his coalition partners can no longer support him.
“I am proud of my work in politics and not afraid to put it to the verdict of the electorate, whether that’s now or later,” he added. “I am also proud of my wife and the integrity and self-sacrifice that she has always shown.”
The Prime Minister said he had discussed the matter with the leader of the Independence Party, the senior coalition party to his Progressives.
He said he would “happily answer” for his deeds and decisions, in public and private, and hoped to continue pursuing the vision for Iceland that drove him to enter politics.
The Panama Papers revealed that Mr Gunnlaugsson and his wife bought an offshore company, Wintris Inc, in 2007 but the politician allegedly did not declare his interest when elected to the Icelandic Parliament two years later.
Opposition parties had called for a vote of no confidence later his week as anger mounted over Mr Gunnlaugsson’s financial dealings during Iceland’s devastating financial crisis.
There is no evidence that the Prime Minister, who sold his shares in Wintris in 2009, his wife or the company were involved in any tax avoidance, evasion or dishonest financial gain.
Iceland’s President, Ólafur Ragnar Grímsson , cut short a visit to the US to attend to the “very serious situation” at home and has responsibility for forming coalitions and emergency governments as head of state.
If parliament is dissolved, all parties will have 45 days to prepare for elections.
