Iceland Social Democrats present new coalition government

REYKJAVIK: Iceland’s Social Democratic Alliance on Saturday (Dec 21) presented a three-party coalition government, vowing to stabilise the economy after emerging as Iceland’s biggest party in November’s elections.

The Social Democratic Alliance beat out the governing Independence Party to win the snap election, called after the left-right coalition collapsed in October over divisions on the handling of immigrants and asylum seekers.

Kristrun Frostadottir, leader of the Social Democratic Alliance, was asked to form a government by Iceland’s president in early December.

Frostadottir will assume the office of Prime Minister and lead a government consisting of her own party together with the Liberal Reform Party and the People’s Party.

“These three parties have been given a very strong mandate,” she told a press conference Saturday.

At 36, Frostadottir will be the youngest ever prime minister in Iceland’s modern political history.

Healthcare, economic issues and housing were top concerns for a majority of voters in the election where the Social Democrats got 20.8 per cent of the vote, securing 15 seats in the 63-seat parliament.

Leaders of the parties forming the new government said Saturday that housing security and poverty alleviation were among their priorities.

With Iceland battling inflation and high interest rates, the incoming government said one of their first major tasks was to stabilise the economy.

They also said they were planning to hold a referendum on resuming Icelandic EU accession talks – which were halted in 2013 – by 2027.

The Independence Party of outgoing Prime Minister Bjarni Benediktsson came second in the election, with 19.4 per cent of the vote and 14 seats, its worst ever showing.

In third place was the Liberal Reform Party with 15.8 per cent and 11 seats, while the People’s Party earned 13.8 per cent and 10 seats.