Panama Papers | Iceland PM resigns after requesting dissolution of parliament

The prime minister of Iceland has asked president Olafur Ragnar Grimsson to dissolve parliament after allegations he concealed millions of dollars worth of investments in an offshore company.

He has since resigned.

Sigmundur Gunnlaugsson had come under increasing pressure over documents showing he and his wife bought an offshore company in 2007.

He is one of dozens of leaders and former leaders around the world named in a huge leak from Panamanian law firm Mossack Fonseca.

After refusing to resign on Monday, the prime minister appeared to come under increasing pressure from within his governing coalition too.

He took to Facebook on Tuesday to outline his position. "I told the leader of the Independence Party that if the party's parliamentarians think they cannot support the government in completing joint tasks, I would dissolve parliament and call a general election," he wrote.

France reclassifies Panama as tax haven

France will put Panama back on its blacklist of uncooperative tax jurisdictions, its finance minister said on Tuesday after media revelations about a Panamanian law firm specialized in setting up offshore firms thrust the country into the spotlight.

"Panama is a country that wanted us to believe that it could respect the main international tax principles and thus it was taken off the tax haven blacklist," Michel Sapin told lawmakers in a question and answer session in parliament.

"France has decided to add Panama back on the list of uncooperative countries with all of the consequences that that will have for those who have dealings with Panama," he added.