Iceland forms new center-right government

Iceland forms new center-right government led by parties in power before 2008 collapse

REYKJAVIK, Iceland (AP) -- Progressive Party leader Sigmundur David Gunnlaugsson has been chosen as Iceland's new prime minister.

He was named Wednesday after several weeks of talks on the formation of a new government.

The center-right government will also include Bjarni Benediktsson, head of the Independent Party, who will serve as Minister of Finance.

Icelanders voted April 27 to return power to the conservative Independent Party and rural-based Progressive Party, who governed Iceland for decades before the 2008 economic collapse.

The remaining ministries will be divided, giving the Independent Party five ministers, and the Progressives four.

Gunnlaugsson was given the mandate to lead coalition talks from President Olafur Ragnar Grimsson on April 30.