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Iceland’s Sigurdardottir to Announce Cabinet Changes Aug. 25

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Aug. 21 (Bloomberg) -- Iceland’s Prime Minister Johanna Sigurdardottir will announce changes to her cabinet on Aug. 25 after briefing her fellow Social Democrats on the moves, she told state broadcaster RUV.

The changes are designed to prepare the government for next year’s parliamentary elections and facilitate the reduction of ministries from 10 to eight, approved by the island’s parliament on May 11 and set to take place on Sept. 1.

A new Industry and Innovation Ministry will replace the current Ministry of Industry, Energy and Tourism and the Ministry of Fisheries and Agriculture. The duties of the Ministry of Economic and Business Affairs will be divided between that new ministry and the Ministry of Finance, which will be renamed the Ministry of Finance and Economic Affairs. The Environment Ministry will be renamed the Ministry for the Environment and Natural Resources.

“I’m obligated to discuss this in a party board meeting and then with” the Social Democratic lawmakers on Aug. 25, Sigurdardottir told the Reykjavik-based broadcaster. “My motion will be discussed then and hopefully approved.”

To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik valdimarsson@bloomberg.net.

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net.

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