Gunnlaugsson’s resignation follows street protests in Reykjavik in which thousands of Icelanders took part.
Documents leaked on Monday allege that Gunnlaugsson and his wife set up a company in the British Virgin Islands that he then did not disclose to parliament. Critics say that the company’s reported holdings in Icelandic banks mean Gunnlaugsson has a conflict of interest.
Gunnlaugsson has denied any wrongdoing.
Writing in Newsweek, Birgitta Jónsdóttir, parliamentary chair of Iceland’s opposition Pirate Party said: “If this was a comedy it would be funny but this is actually our head of state. This is not what Icelanders are like and this is not what Iceland is.”
Three things Icelanders take seriously: fish, handball, and anything related to banking scandals. Tens of thousands protesting in the US wouldn't make a dent. Tens of thousands protesting in Iceland is 7% of the country's entire population, so Gunnlaugson was going to have to go. (Imagine if 25 million people showed up in Washington to protest anything today.)
By the way Iceland, entirely awesome job with the "getting involved in local politics" thing.