Reykjavík Running On 5 Billion Deficit

The city of Reykjavík has been running at a 5 billion ISK deficit for the past year, 500 million ISK more than the projected deficit, RÚV reports.

But it’s not as bad as it seems, according to Mayor Einar Þorsteinsson, who explained that the city had reduced its deficit from 15.6 billion in the autumn of 2022 to the point it’s at now. Einar chalks much of the remaining deficit up to poor financial performance of the city-owned energy distributor Orkuveitun.

The opposition Independence Party is having none of it, though, charging that the city is plagued with a spending problem, not an income problem.

The city is in ongoing negotiations with the state on funding for services for disabled residents. Einar told the national broadcaster that tackling the deficit in that area will propel the city’s books back into the black.