Iceland’s President Halla Tomasdottir has tasked Social Democrat leader Katrin Jakobsdottir with forming the country’s next government following Saturday’s general election, Bloomberg reports.
Jakobsdottir’s party emerged victorious, securing the mandate to lead coalition talks.
“There is considerable harmony in our policies,” Jakobsdottir said after receiving the mandate at the president’s residence on Tuesday.
She intends to forge a coalition government with the Liberal Reform Party and the People’s Party.
This three-party alliance commands a clear majority in the 63-seat Alþingi (parliament), holding a combined 36 seats. A key area of common ground among the prospective coalition partners is the ambition to reform or increase resource fees, particularly in the energy and fishing sectors.
The Social Democrats campaigned on a platform of controlling inflation and stabilizing state finances while simultaneously bolstering the welfare system. The Liberal Reform Party, led by former Education Minister Thorgerdur Katrin Gunnarsdottir, shares this focus on fiscal prudence. Among its key policy proposals is the privatization of Landsbankinn hf, a state-owned lender since the 2008 financial crisis. Both the Social Democrats and the Liberal Reform Party support Iceland joining the European Union.
The People’s Party, a relatively young party founded less than a decade ago by Inga Saeland, advocates for poverty reduction, social justice, and enhanced welfare services. While aligning with its prospective coalition partners on many social issues, some of its economic policies differ.
