Icelandic coalition talks fail for third time since October election

REYKJAVIK, Dec 12 (Reuters) - Iceland’s anti-establishment Pirate Party, the Left Greens and three other parties have called off talks on forming a centre-left coalition, Icelandic media reported on Monday.

Pirate Party leader Birgitta Jonsdottir had been asked by the president to try to form a government, after the two largest parties - the Independence Party and the Left Greens - each failed to cobble together a governing coalition.

The third failure to negotiate a coalition since the Oct. 29 snap election raises the spectre of a new vote.

Daily Morgunbladid cited Jonsdottir as saying the parties involved in the latest round of talks had not been able to agree on fisheries policies and on government spending, and she would hand back her mandate to the president later on Monday.

The Pirate Party could not be reached for comment.

One of the big tasks for a new government will be to continue the lifting of capital controls that were put in place after the 2008 financial crisis. Parties on both sides have pledged no major changes to the removal process. (Reporting by Ragnhildur Sigurdardottir; Writing by Anna Ringstrom; Editing by Louise Ireland)