REYKJAVIK Dec 12 Iceland's anti-establishment
Pirate Party, the Left Greens and three other parties have
called off talks on forming a centre-left coalition, Icelandic
media reported on Monday.
Pirate Party leader Birgitta Jonsdottir had been asked by
the president to try to form a government, after the two largest
parties - the Independence Party and the Left Greens - each
failed to cobble together a governing coalition.
The third failure to negotiate a coalition since the Oct. 29
snap election raises the spectre of a new vote.
Daily Morgunbladid cited Jonsdottir as saying the parties
involved in the latest round of talks had not been able to agree
on fisheries policies and on government spending, and she would
hand back her mandate to the president later on Monday.
The Pirate Party could not be reached for comment.
One of the big tasks for a new government will be to
continue the lifting of capital controls that were put in place
after the 2008 financial crisis. Parties on both sides have
pledged no major changes to the removal process.
(Reporting by Ragnhildur Sigurdardottir; Writing by Anna
Ringstrom; Editing by Louise Ireland)