Johanna Sigurdardottir became Iceland's first prime minister and the world's first openly gay head of government when she formed an interim government Sunday to run the country until elections anticipated in April, dpa reported.
Taking office, the 66-year-old, who has been married to another woman since 2002, said her main focus in office will be handling the fall-out from the global financial crisis, which has left the island nation near bankruptcy.
Another priority will be putting together recommendations by April for possible Icelandic membership in the European Union. Until now, Sigurdardottir's coalition of Social Democrats and the Left-Green Movement have rejected EU membership, though the Social Democrats have independently expressed interest in membership.
The coalition lacks an absolute parliamentary majority and will also rely on the support of Iceland's Progressive Party. Coalition head Steingrimur Sigfusson will be the interim head of the finance ministry while the interim foreign minister's job will fall to Ossur Skarphedinsson.
The new coalition came into being after the former government of Geir Haarde gave up power in the face of massive protests over the government's handling of the financial crisis.