Ex-PM Ousted in Panama Papers Scandal Leads Iceland's EU Revolt

(Bloomberg) -- Sigmundur David Gunnlaugsson, who had to resign as prime minister in Iceland after the Panama Papers revealed his family’s offshore accounts, is stirring up chaos again in Icelandic politics.

At the helm of a new party now, the 44-year-old is leading a filibuster to prevent Iceland from ratifying the European Union’s third energy package. Iceland, linked with the EU through the European Economic Area, needs to adopt the plan for it also to become valid in the other European Free Trade Area countries, principally Norway.

In a confrontation with the majority in the 63-seat legislature, Gunnlaugsson and his fellow Center Party lawmakers are holding all-night speaking sessions to run out the clock on a vote. The debate has topped 100 hours, most of which have been filled by Center Party members chatting with each other deep into the night.

“We will do everything in our power,” Gunnlaugsson said in an interview.

Gunnlaugsson argues that the directive will rob Iceland of control of its resources and push up energy prices. A contentious debate over the package, which aims to consolidate the common European market for electricity and gas, was also held in Norway before it was passed.

The government finds his arguments off the mark. The bill will also have little practical application since Iceland’s remote location means it has no connection to the mainland power market. Any power link, which has been discussed, will also need parliament’s approval, according to the government.

Gunnlaugsson is skeptical about the disclaimers offered up by the government, also arguing he has allies in Norway that would also like to see the directive sent back to the EEA joint committee.

Parliament is set to go into summer recess on June 5th and it’s unlikely the matter will be resolved before then or that the Center Party will back down.

The frustration is mounting among rival members of parliament. “This can’t go on much longer without causing considerable damage,” Steingrimur J. Sigfusson, the speaker of parliament, said in an interview on Friday.

To contact the reporter on this story: Ragnhildur Sigurdardottir in Reykjavik at rsigurdardot@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

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