[4] In early April 2016, following revelations in the Panama Papers, leaks from law firm Mossack Fonseca about the financial dealings of then Prime Minister Sigmundur Davíð Gunnlaugsson (Progressive Party) and his wife, there were calls for an early election from the opposition,[5] who planned to present him with a motion of no confidence.

[5][6][7][8][9] The Progressive Party's deputy leader, Sigurður Ingi Jóhannsson, became acting Prime Minister the same day.

"[11] On 11 August, Bjarni Benediktsson met with opposition parties and later announced that elections would be held on 29 October 2016.

[2] The 63 members of the Althing were elected using open list proportional representation in multi-member constituencies of 10 to 11 seats.

[3] The Pirate Party then suggested a minority coalition of Left-Green Movement, Bright Future and Reform, with outside support from themselves and the Social Democrats, in order to simplify the process of government formation.

On 24 November, the coalition talks fell through and Katrín formally renounced the Presidential mandate to form a government.

[25] On 2 January 2017, the Independence Party started official talks about a possible coalition deal with Viðreisn and Bright Future.