Iceland’s President presented a new government on Saturday, led by Social Democratic Prime Minister Kristrun Frostadottir, with a strong focus on cutting inflation, reducing interest rates, and holding a referendum on European Union membership by 2027.
The centre-left Social Democratic Alliance, which became the largest party in the snap election on November 30, has formed a coalition with the centrist People’s Party and the pro-European Reform Party, according to public broadcaster RUV.
Key Highlights:
- Thorgerdur Katrin Gunnarsdottir, leader of the Reform Party, will serve as Minister of Foreign Affairs.
- This marks the first time Iceland will have female leaders for all governing coalition parties, as well as a female Prime Minister and President, Halla Tomasdottir, serving simultaneously.
- At just 36 years old, Frostadottir is Iceland’s youngest Prime Minister in history.
Policy Objectives:
The coalition has outlined plans to:
- Lower inflation and interest rates.
- Reduce the number of ministries to streamline administrative costs.
- Organize a referendum on EU membership, with a target date no later than 2027.
- Commission a panel of independent experts to evaluate the pros and cons of maintaining the Icelandic crown versus adopting the Euro currency.
The coalition replaces the previous government led by Bjarni Benediktsson’s conservative Independence Party, which faced public dissatisfaction over issues like migration, energy, and housing policies.
A live broadcast from RUV captured the coalition leaders embracing after signing the agreement, signaling a fresh chapter for Iceland’s political landscape.
Source: Reuters
