Centre-Right PM resigns after elections, Regeneration looking to join left-opposition. Ruling party with Pirates and Greens looking likely.
nytimes.com/2016/10/31/world/europe/icelands-prime-minister-resigns-after-pirate-party-makes-strong-gains.html
"The liberal Regeneration Party, which is expected to play the role of kingmaker in the horse-trading following the election, has ruled out joining a coalition with the current governing establishment parties. This could mean that left-leaning parties could potentially form a ruling coalition.
While the conservative Independence Party made gains, “it is not a return to the status quo,” said Andres Jonsson, a political consultant. To form a government, the party will have to extend its hand to smaller, more rebellious groups, he said.
“The traditional party system has been disrupted,” Mr. Jonsson said. “We are not seeing big movements of people who feel that they are able to relate with the messages of the big coalition parties. Changes are going to come from the outside, not from inside the old parties.”
The election highlighted the fragmentation of the political landscape. A dozen parties fought for power over an electorate of about 260,000, barely enough to fill three American football stadiums.
Birgitta Jonsdottir, the anarchist leader of the Pirate Party, said she was satisfied with the result. “Whatever happens, we have created a wave of change in the Icelandic society,” she told a cheering crowd here early Sunday morning.
About 40 percent of Pirate supporters are under the age of 30. They had pinned their hopes on a party that has promised to install a more inclusive and transparent government.
The Pirates have pledged to enhance direct democracy by passing the world’s first “crowd-sourced constitution,” drafted by Icelandic civilians rather than politicians. Parliament blocked the document in 2013."