Iceland’s second biggest opposition party, the Progressive Party, has lost an MP and a deputy MP who feel the party’s right wing fringe is gaining control. The MP says he expects more resignations in the coming days. Read the full story

A cartoon of Icelandic MP Siv Fridleifsdottir as a prostitute, which appeared in the Morgunbladid newspaper, has caused outrage within the party. The cartoonist has now apologised; but the newspaper has not. Read the full story

Any potential co-operation between Iceland’s Progressive Party and the two coalition parties in government has not been discussed among the three parties, says Progressive MP Gunnar Bragi Sveinsson. Read the full story

The former Icelandic Prime Minister, Steingrimur Hermansson has died aged 82. Read the full story

The governments of Iceland, the United Kingdom and the Netherlands have held regular consultations on the Icesave issue during the past few weeks. A delegation led by Iceland’s Minister of Finance, Steingrímur J. Sigfússon, and the Chairmen of the opposition Progressive and Independece parties, Sigmundur Davíð Gunnlaugsson and Bjarni Benediktsson, left Iceland yesterday to meet with key counterparts in The Hague. A meeting is scheduled to take place later this afternoon with Dutch Finance Minister Wouter Bos and British Deputy Finance Minister Lord Myners to discuss the current situation and exchange information. Read the full story

(Updated 17.24 GMT) The Progressive Party in Iceland believes Prime Minister Johanna Sigurdardottir is deliberately trying to block a potential massive loan to the country from Norway completely unconnected to the IMF package. The Prime Minister described the allegations as preposterous. Read the full story

Hoskuldur Thor Thorhallsson, an MP for Iceland’s Progressive Party, believes the figures recently released on likely economic migration away from Iceland are too high.

“I hope it will not be as bad as it was in the Faroe Islands during their crisis; but I think these figures have been very carefully predicted. This could be a very serious problem,” Read the full story

Iceland’s Social Democrats remain the most popular political party, according to the latest Capacent Gallup poll conducted for RUV and Morgunbladid. Read the full story

Sigmundur David Gunnlaugsson, leader of Iceland’s Progressive Party said in an interview with mbl.is that he wants the upcoming elections to usher in a new government coalition which includes his party. This government should be strong enough to make the tough decisions needed in the current financial and political climate. Read the full story

It seems unlikely Iceland’s new Social Democrat and Left Green coalition with Progressive Party support will be unveiled before the end of the weekend.

Progressive Party members are said to need more time to discuss the issues and implications of working with the SD and the Greens.

The parliamentary group of the Progressive Party met on Friday and the Left Green Party and the Social Democrats are meeting this morning. MBL.is reports that the topics of the private meetings are not being made public beforehand.