Icelandic Prime Minister Moves to Disband Parliament in Wake of Panama Papers

Prime minister responds to vote of no confidence and mass demonstrations, in wake of revelation of alleged conflict of interest over his wife's company.

Iceland's Prime Minister Sigmundur David Gunnlaugsson, speaks during a parliamentary session in Reykjavik on Monday April 4, 2016.

Prime Minister Sigmundur Gunnlaugsson has asked for parliament to be dissolved after the opposition called a vote of no confidence in the government, Iceland's President Olafur Ragnar Grimsson said on Tuesday. 

After a meeting with the prime minister, Grimsson said he had asked for talks with the main parties before making a decision. 

On Monday, the opposition filed a motion of no-confidence and thousands gathered outside parliament to protest about what the opposition said was Gunnlaugsson's failure to disclose a conflict of interest over his wife's company.