Iceland: Two winning parties form new government.

On May 22, the two parties that won the recent general election in Iceland agreed to form a new government and announced they would hold a referendum on the country's plan to join the European Union (EU).

According to the agreement, Sigmundur David Gunnlaugsson, chairman of the Progressive Party, will serve as Prime Minister, and Bjarni Benediktsson, chairman of the Independence Party, will assume the position of Finance Minister. The remaining cabinet positions have not yet been revealed.

The new government is scheduled to take office on May 23rd, nearly a month after the general election that gave the Progressive Party and the Independent Party 19 seats each in the 63-seat Parliament.

According to the policy document signed by representatives of the two parties, the new government will suspend negotiations on Iceland's accession to the EU until after the referendum to assess progress in the negotiation process with the EU as well as the practical aspects of the referendum.

The new government's action plan also aims to reduce household debt and simplify the tax system to lower taxes.

Negotiations for Iceland's accession to the EU began in July 2010. However, earlier this year, Iceland announced a "slowdown" of the negotiation process to focus on preparing for the general election. According to recent opinion polls, a majority of the country's citizens oppose joining the EU.

According to (VNA) - DT