COPENHAGEN (Reuters) - Iceland's current government coalition, consisting of three parties from the left to the right, has agreed to continue for another term after they bolstered their majority in a Sept 25 general election https://www.reuters.com/world/europe/icelands-ruling-coalition-boosts-majority-preliminary-election-results-show-2021-09-26.
Katrin Jakobsdottir of the Left-Green Movement will stay on as Prime Minister of the government, which has provided a period of stability https://www.reuters.com/world/europe/iceland-election-political-stability-again-stake-2021-09-25 since 2017 after years of political scandals and distrust of politicians following the 2008 financial crisis.
The Left-Greens, who call themselves a "radical left wing party," will continue in government with the unlikely partners - the pro-business Independence Party and the centre-right Progressive Party.
"The new government intends to promote economic stability and rebuild fiscal strength on the basis of a strong economy," the parties said in a cooperation treaty published on Sunday.
It would also work to combat climate change, an important issue for Icelanders who are witnessing melting glaciers, through a reduction in emissions and green investments, it said without providing further detail.
(Reporting by Stine Jacobsen, Editing by Louise Heavens)