Icelandic parties reach coalition agreement

REYKJAVIK, May 22 (Reuters) Iceland's centre-right Independence Party reached a deal today to form a coalition government with the centre-left Social Democrats that Prime Minister Geir Haarde said will leave him in his current role.

The two parties began talks last week after Independence's ruling partner for 12 years, the Progressive Party, quit over a poor showing in national elections on May 12.

The agreement will see Independence hold onto the key post of finance minister. It will also lead the ministries of education, health, fisheries and agriculture and justice, Haarde told reporters after winning his parliamentary committee's approval for the deal.

Social Democrat leader Ingibjorg Solrun Gisladottir will become foreign minister, he said. Haarde did not name the other ministries that will have Social Democrat leaders.

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