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Iceland's ruling Independence Party remains the biggest despite setback

REYKJAVIK, Oct 29- Despite a setback Iceland's ruling center-right Independence Party took an early lead in a parliamentary vote on Saturday, followed by the Left-Green opposition party.
It was still too early to say, however, which party would get the mandate to form the next government.
In early counting, the Independence Party led with 26 percent, down 3 percentage points from last year's election, followed by the Left-Green Movement with 17 percent, and the Social Democrats in third with 13 percent, almost doubling its size.
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