New Icelandic centre-right coalition to give parliament vote on EU referendum

Bjarni Benediktsson of the Independence Party gives a news conference in Reykjavik, Iceland November 2, 2016. REUTERS/Geirix

REYKJAVIK (Reuters) - Iceland's centre-right Independence, Reform and Bright Future parties agreed on Tuesday to form a coalition government after a two-month impasse and said they would ask parliament whether to hold a referendum on joining the European Union.

As Iceland prepares to lift remaining capital controls imposed after the 2008 financial crisis led to the collapse of its banks, the government also said it would study a possible new currency regime which could include pegging the crown.