My northern neighbors have been in the news the past few days, as the Panama Paper tax avoidance revelations force out PM Gunnlaugsson:

After a particularly eventful day, prime minister Sigmundur Davíð Gunnlaugsson announced after a parliamentary party assembly of the progressive party just now that he will step down as prime ministerHe suggests Sigurður Ingi Jóhannsson as a candidate to take over the office. Gunnlaugsson however plans to stay in his seat as chairman of the progressive party.

Events unfolded rapidly and seemed to surprise not only the public of Iceland but members of cabinet as well. Bjarni Benediktsson floor leader of the Independent party arrived in Iceland this morning and met for two hours with Sigmundur Davíð Gunnlaugsson. After that meeting the prime minister published a Facebook status where he said among other things that he had informed Benediktsson that if the Independent party no longer supported the government under his leadership he would be ready to dissolve parliament.

He then promptly went to Bessastaðir, apparently to ask the President Ólafur Ragnar Grímsson to dissolve the parliament, a request the president denied – for the first time in the history of the republic of Iceland. After that meeting the President of Iceland gave an impromptu press conference where he explained that he needed to hear both sides before making such decisions. When reporters asked the prime minister about the proposition to dissolve parliament, he replied, “have a look at my Facebook site, it´s a better source that some things you hear at press conferences” referring to the presidents press conference, implying that he did not have the same understanding of the meeting with the president as was expressed at the press conference, further perplexing the public of Iceland. Just after three o’clock today Sigmundur Davíð Gunnlaugsson finally announced his resignation on the term mentioned above.

The country will hold new elections later this year:
Iceland's ruling coalition has named Sigurdur Ingi Johannsson as the new PM, with early elections to be held in the autumn.

Mr Johannsson, 53, is agriculture and fisheries minister and deputy leader of the Progressive Party (PP).

The move comes after PM and PP chairman Sigmundur Gunnlaugsson stepped down in the wake of the leaked Panama Papers.

The leaks, from Panama law firm Mossack Fonseca, showed Mr Gunnlaugsson owned an offshore firm with his wife.

Polls are showing the Pirate Party leading. Could be a weird outcome.