Iceland’s Prime Minister Resigns After Fallout From Panama Papers Leak

The Panama Papers have claimed their first victim.

Iceland’s Prime Minister Sigmundur David Gunnlaugsson was forced to resign just two days after the release of the Panama Papers, which have caused a major political disaster for many heads of states around the world.

Gunnlaugsson is the first politician to be taken down after the release of the papers. The Panama Papers unveiled many offshore and “tax-avoidance arrangements of the rich and famous around the world,” explained the Daily Mail. The papers revealed Gunnlaugsson and his wife had been hiding money with a company in the British Virgin Islands and Panamanian law firm Mossack Fonseca.

Since the release of the papers, major protests have taken place in Iceland putting intense pressure on Gunnlaugsson to step down.

Protest in Reykjavik – people demand that Gunnlaugsson prime minister of Iceland resigns because of corruption. #panamapapers #cashljós

A photo posted by Your Local Iceland Expert (@whyiceland) on Apr 4, 2016 at 7:47pm PDT

“Senior political figures in the Nordic nation have been holding emergency talks amid fallout from the Panama Papers leaks,” shared CNN. “Critics said the revelations surrounding the offshore company, which allegedly had holdings in Iceland’s collapsed banks, shattered public confidence in Gunnlaugsson’s leadership and could harm the country’s international reputation.”

Gunnlaugsson, who has been in office since 2013, initially refused to resign and instead asked for a snap-election. According to RUV broadcaster, President Olafur Ragnar Grimsson “would not consider the request to dissolve parliament before he had spoken with both parties in the coalition.”

Earlier in the week, before the release of the paper, Gunnlaugsson walked out of an interview when asked about a company called Wintris, regarding possible tax fraud. 

Over 20,000 protestors flooded the street on Monday, speaking out about the papers and the need for Gunnlaugsson’s resignation.

“I’ve never seen as many people show up for a protest,” Birgitta Jonsdottir, a lawmaker for the opposition Pirate Party, told CNN.