Iceland’s Independence Party Retains Most Seats After Electionbr Halldorsson said that an isolated fbr The former prime minister was forced out of the government last year after the leaked Panama Papers revealedbr that Mr. Gunnlaugsson’s family had offshore holdings in the British Virgin Islands, setting off widespread protests over his perceived tax avoidance.br Mr. Halldorsson said that coalition talks might not play out so favorably for Mr. Gunnlaugsson despite his ambitions to become a kingmaker.br Mr. Benediktsson called early elections last month after his government collapsedbr because of accusations of a cover-up of a letter of recommendation written by a prime minister’s father on behalf of a convicted child-sex offender.br The government had been formed a mere 10 months before, born of early elections called after Mr. Gunnlaugsson’s abrupt resignation.br Mr. Halldorsson, the political scientist, said, "Although the economy has fully recovered,br the political crisis set in motion by the economic collapse in 2008 continues to deepen.