On Saturday, Iceland’s president introduced a new government led by Social Democratic Prime Minister Kristrun Frostadottir.
According to the public broadcaster RUV, the administration’s goals include reducing inflation and interest rates and planning a referendum on European Union membership by 2027.
Following a snap election on November 30, Frostadottir’s centre-left Social Democratic Alliance emerged as the leading party. They have formed a coalition with the centrist People’s Party and the pro-European Reform Party. Thorgerdur Katrin Gunnarsdottir of the Reform Party will serve as the Minister of Foreign Affairs.
This coalition represents the first occasion in Iceland, where all leaders of the governing parties are women. Additionally, it marks the inaugural moment the country has a female prime minister and a female president, Halla Tomasdottir.
Svona lítur ný ríkisstjórn út: pic.twitter.com/auTDOboNU3
— Fréttastofa RÚV (@RUVfrettir) December 21, 2024The new government, replacing the previous administration led by Bjarni Benediktsson’s conservative Independence Party, aims to tackle key economic issues. These efforts include managing inflation and interest rates and reducing government ministries to lower administrative costs.
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An important focus for the new coalition is to hold a referendum on EU membership by 2027. Furthermore, the government intends to form a panel of independent experts to assess the advantages and disadvantages of retaining the Icelandic crown versus switching to the Euro.
This new administration enters during prior governmental difficulties concerning migration, energy, and housing, intending to guide Iceland towards economic stability and possible integration with Europe.
