Reykjavik: Iceland will face its second snap election in about a year after the government collapsed over a scandal involving the Prime Minister's father and grants of clemency to convicted child molesters.
The Bright Future Party, one of three partners in the government coalition, abandoned Prime Minister Bjarni Benediktsson citing a "breach of trust" after accusing his party of trying to cover up a letter his father had written vouching for the character of a convicted child molester.
The issue has been much in the news in Iceland, where convicted paedophiles can apply for a legal "clean slate" and have their record expunged.
"That goes against our policies here at Bright Future on transparency and a good way of working," party leader Ottarr Proppe said.
That leaves the country, whose economy was wrecked by the collapse of its banking system nearly a decade ago, facing its second snap election in less than a year.
The outgoing government would be the shortest-living in Iceland's history. The previous government was felled by the Panama Papers scandal over offshore tax havens.
"We have lost the majority and I don't see anything that indicates we can regain that. I am calling an election," Mr Benediktsson said.
He would be looking to hold the election in November though that would mean it would not be possible to finish next year's budget.
It is ultimately up to President Gudni Johannesson, whom Benediktsson was due to meet with on Saturday, to make the decision on a new election.
If he accepts the call, he is likely to ask the government to stay in place until a new coalition is formed but he could also ask other parties to try form a majority. Mr Johannesson was not immediately available for comment.
The Ministry of Justice, under Sigridur Andersen, a member of Mr Benediktsson's Independence Party, initially refused to disclose who had written the letter of recommendation. She was later ordered to do so by a parliamentary committee.
Ms Andersen told broadcaster Stod 2 that she had informed Mr Benediktsson about his father's involvement in July but had not told anyone else.
The Prime Minister said on Friday he was "shocked" to hear of his father's letter and never tried to conceal anything.
"I was told by the justice minister that we were discussing confidential matters, which followed the rules of the ministry...I decided to handle the issue as a confidential matter," Mr Benediktsson said.
He had later informed the chairmen of the coalition parties, he said.
"First, it was illegal for me to [divulge] the information, second, I informed them when I could.
"This week, it came forth that my father had written a letter... I couldn't have written such a letter myself and I will never try to defend that."
His father, Benedikt Sveinsson, confirmed on Friday that he had signed a letter supporting his friend's application to have his "honour restored", a procedure that effectively erases a criminal record. Among the requirements is a letter of recommendation from a close friend or associate.
Mr Sveinsson said he had not discussed the letter with anyone. He earlier released a statement apologising for signing the letter.
"What was supposed to be a small gesture of good will towards a convicted criminal has instead turned into a continuation of the tragedy for his victim. For this I again apologise," he said
Calls for a snap election were made by most of the other parties in Parliament, including the Pirate Party which scored a third of the votes at the last election and is now demanding a vote on constitutional changes calling the Independence Party "unfit for government".
Reuters, Bloomberg
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