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Icelandic voters set to oust centre-right government in snap election

But political scandals, a growing sense of inequality and worries about immigration are jeopardising stability in one of the most homogeneous nations on earth.

The previous government was felled last year by the Panama Papers scandal over offshore tax havens.

The Independence Party has dominated power for decades. It wants to reduce the national debt and cut taxes on individuals and businesses. The party won 21 seats in the 63-seat parliament in elections a year ago.

The Left-Greens want to fight inequality and fund an increase in public health care, education and infrastructure spending by hiking taxes for the wealthy and introduce a property tax.

The party, which currently holds 10 seats in the parliament, came in second in last year’s election but failed to form a government coalition.

Pirate Party, which last year rode on a wave of anger against the establishment to become the third biggest party in parliament, stood to get 8 percent of votes in Saturday’s election down from 14 percent last year.

The Centre Party, which was formed this September by former Prime Minister Sigmundur David Gunnlaugsson after he and his supporters left another party, got 11 percent of the votes in the early counting.

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