Iceland’s Next Prime Minister Still Undecided

Words by

Published April 29, 2013

The final decision of who will be the next prime minister of Iceland rests with President Ólafur Ragnar Grímsson, who will meet individually with the leaders of all elected parties this afternoon, Vísir reports.
Both Bjarni Benediktsson, the leader of the Independence Party, and Sigmundur Davíð Gunnlaugsson, leader of the Progressive Party are candidates for the title as each party won 19 seats in Saturday’s parliamentary elections.
While the Independence Party won the largest share of the popular vote by 2% over the Progressive Party, the big victory is considered to lie with the Progressives, who have more than doubled their representation in Parliament since the 2009 elections, when they won nine seats, which was an increase from the seven seats they won in the 2007 elections. Meanwhile, the Independence Party has only gained three seats since the 2009 election and despite the increase, this still remains the second worse results in the party’s history.
Although it is likely the two parties will form a majority coalition government, Sigmundur Davíð has stated that he will only work with a party that will help him deliver on his promise to lower mortgage rates by 20%.
The promised mortgage reduction was the main carrot dangled by the Progressives in the election race as a proposed universal flat tax rebate. However, economist Jón Steinsson from Columbia University has shown that it is likely to benefit high-income earners and wealthy property owners at the expense of those living outside the Reykjavík area, who were not as affected by the real estate bubble. Jón told Vísir that “75% of the flat tax rebate would run into the pockets of those who are not in any financial trouble.”



News
Finance Minister Emphasises Elections “In Late October”

Finance Minister Emphasises Elections “In Late October”

by

Contrary to what his partner in the ruling coalition has said, Minister of Finance and Independence Party chairperson Bjarni Benediktsson

News
Are You An Inside Demon? Innipúkinn Festival Is Here

Are You An Inside Demon? Innipúkinn Festival Is Here

by

The Merchant’s Weekend is a national summer holiday, taking place this year July 30-August 1, when Reykvíkingar pile into cars

News
Icelandic Tour Bus Company Offers Pokémon Go Hunting Trips

Icelandic Tour Bus Company Offers Pokémon Go Hunting Trips

by

If you like Pokémon Go, Reykjavík Excursions has your back. The popular tour bus company has announced that for the

News
Blood Donations Needed For Merchants’ Weekend Holiday

Blood Donations Needed For Merchants’ Weekend Holiday

by

With the approach of a 3-day weekend, Blood Donation in Iceland has sent out the call. Vísir reports that the

News
Ex-PM Casts Aspersions On Panama Papers

Ex-PM Casts Aspersions On Panama Papers

by

Former Prime Minister Sigmundur Davíð Gunnlaugsson has questioned the veracity of the Panama Papers which led to his resignation. RÚV

News
Naked Man Emerges From The Sea

Naked Man Emerges From The Sea

by

The Grapevine has received photos of some particularly foolhardy behaviour at the notorious Reynisfjara beach. Photographer Frank Tschöpe contacted The

Show Me More!