The chairmen of the Independence Party and Progressive Party, Bjarni Benediktsson and Sigmundur Davíð Gunnlaugsson, formally presented the government agreement to the public at a press conference shortly after 11 am this morning.Sigmundur and Bjarni present the agreement. Photo: Páll Stefánsson/Iceland Review.
According to the agreement, the new government will focus on reducing household debt and on strengthening the economy, ruv.is reports. The government plans to use the assets of the estates of the country's failed banks to help cut the debt of households, bloomberg.com reports.
Earlier in the day, Sigmundur, who held the mandate to lead coalition talks, presented the agreement to President of Iceland Ólafur Ragnar Grímsson.
Sigmundur will become prime minister and Bjarni minister of finance and economics. The Progressive Party will hold four ministries in the first run and the Independence Party five, in addition to the speaker of parliament.
As reported earlier, the party council of the Independence Party and central committee of the Progressive Party unanimously accepted the government agreement negotiated by their respective chairmen yesterday evening.
The agreement (in Icelandic only) can be read here.