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Prime Minister Sigurdur Ingi Johannsson announced his resignation after his centrist Progressive Party -- which had been governing in a coalition with the conservative Independence Party -- suffered a drubbing in Saturday's vote.The Independence and Progressive parties together won 29 seats in the 63-member parliament or Althingi, down nine from the outgoing assembly.The Pirates and its three centre-left allies won 27 seats, reaping gains from a wave of popular anger with the establishment parties but falling short of a majority.President Gudni Johannesson is set to task Finance Minister Bjarni Benediktsson of the Independence Party, which won 21 seats, with trying to form a new government.The centrist Regeneration Party, which won seven seats, could determine the fate of coalition talks but negotiations with the Independence Party could be tough.The two parties fell out over holding a referendum on resuming the nation's EU membership talks which were stalled by the incumbent government.
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