(Bloomberg) -- Iceland’s governing coalition, which spans the entire political spectrum, settled on ruling together for a second consecutive term after tough talks including on energy and climate issues.

The volcanic island nation will be led by Katrin Jakobsdottir, 45, who will oversee a tourism-dependent economy bouncing back from the pandemic. The agreement, announced in Reykjavik on Sunday, brings to a close weeks of negotiations following September’s general election.

Coming up with ways to mitigate and adapt to climate change will be one of the government’s top policy areas. The Arctic nation is vulnerable to extreme weather events, and home to glaciers melting from global warming.

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