Iceland's president presented a new government on Saturday under Social Democratic Prime Minister Kristrun Frostadottir that aims to cut inflation and interest rates and hold a referendum on European Union membership by 2027,

Iceland’s election-winning Social Democratic Party agreed with two junior partners to form the island nation’s new ruling coalition that vows budget restraint to fight inflation and seeks a referendum on continuing European Union entry talks.

Iceland appoints its first female prime minister, Kristrun Frostadottir, leader of the Social Democratic Alliance. In a coalition with the People's Party and Reform Party, all leaders are women, marking a historic moment.

Iceland has established a new government that will decide on resuming negotiations with the European Union through a referendum. The agreement to form Iceland's new government was signed by the leaders of three parties,