The president of Iceland announced a new government on Saturday, led by Social Democratic Prime Minister Kristrun Frostadottir, with plans to lower interest rates and inflation while holding a referendum on joining the EU by 2027, according to public broadcaster RUV.
In a November 30 snap election, Frostadottir’s center-left Social Democratic Alliance emerged as the largest party. According to RUV, the alliance has decided to form a coalition government with the centrist People’s Party and the left-leaning, pro-European Reform Party.
Thorgerdur The Reform Party’s leader, Katrin Gunnarsdottir, will serve as foreign affairs minister, it further stated.
For the first time in Iceland’s history, all of the ruling parties’ leaders will be female, and Halla Tomasdottir, the country’s first female president and prime minister, will hold office at the same time, the broadcaster said.
A livestream from RUV showed the leaders of the three coalition parties embracing after they signed a deal to form a government.
According to RUV, Frostadottir, 36, will be the youngest prime minister in Icelandic history.
The new coalition, which was called after coalition disputes and public unhappiness over migration, energy, and housing issues, replaces a government led by the conservative Independence Party of Bjarni Benediktsson, which finished second in the election.
The Icelandic newspaper RUV, which cited Frostadottir on Saturday, reported that the new government intends to concentrate on lowering interest rates and inflation while also aiming to cut administrative expenses by eliminating one ministry.
As reported by RUV, it also intends to draft a parliamentary resolution to hold a referendum on the issue of EU membership, which the ruling parties expressly hope will happen by 2027 at the latest.
In addition, the new administration plans to assemble a group of impartial specialists to evaluate the benefits and drawbacks of keeping the Icelandic crown as opposed to switching to the euro currency.
