Iceland has welcomed a historic moment as Kristrún Frostadóttir, at just 36 years old, assumes the role of the nation's youngest-ever Prime Minister and the world's youngest serving state leader. Leading the Social Democrats, Kristrún is determined to revitalize her party by realigning it with its foundational values. As she embarks on her premiership, she has invited the public to contribute ideas on streamlining government spending, promising a novel approach to governance that balances social welfare with fiscal responsibility. Her government, made up entirely of women, represents a marked departure from traditional political norms, aiming to demonstrate the viability of a welfare-oriented administration in maintaining a balanced budget.
Kristrún's coalition government, alongside Þorgerður Katrín Gunnarsdóttir and Inga Sæland, is unique in its all-female composition. Each leader brings diverse backgrounds to the table yet shares a progressive vision centered on social welfare. Kristrún's journey from economist and journalist to politician is notable for its brevity; she entered politics only four years ago and swiftly rose to become the party chair. Her relative inexperience is viewed as an asset by her supporters, who believe it affords her a fresh perspective on political leadership.
"I think that is an antidote to right extremism. Welfare-oriented centre right, centre left parties, wherever you want to situate this government, brings politics back to the humane level.” – Kristrún Frostadóttir
A central component of Kristrún's administration is its commitment to addressing Iceland's pressing challenges. These include a housing crisis, public dissatisfaction with mass tourism, and the impacts of ongoing volcanic activity. The new government has pledged to hold a referendum in 2027 concerning the potential reopening of EU membership discussions. This move signifies a shift away from the right-wing trends seen across Europe and the United States, as Kristrún's government positions itself on the centre-left spectrum.
Kristrún has criticized previous policies for prioritizing quantity over quality, particularly in tourism. Her administration will focus on enhancing the quality of life for Icelanders through targeted welfare and social initiatives. Communication within her coalition is another priority, aiming to avoid the pitfalls of poor cooperation that plagued the previous government.
"Towards the end their cooperation was very publicly in a bad place,” – Kristrún Frostadóttir
"So there has been a big call from the public here to have a government that walks in unison, and we are aware that there was a clear call for changes, big changes in government, so this has been a big focus of ours.” – Kristrún Frostadóttir
Kristrún's appeal for public input on government spending reflects her inclusive approach to leadership. By engaging citizens directly, she seeks to foster a more participatory form of governance. This approach aligns with her belief in listening rather than judging people's beliefs, marking a shift towards a more humane and less elitist political landscape.
"Rather than judging people’s beliefs, or “telling them off” as she puts it, she instead wants to be focused on listening." – Kristrún Frostadóttir
"It needs to be “more humane and less elite”." – Kristrún Frostadóttir
The Prime Minister's economic policies will target high interest rates and inflation, with a particular focus on restructuring housing loans and increasing housing supply. These reforms are essential for addressing Iceland's economic challenges and ensuring financial stability.
"Interest rates here are way too high, inflation is way too high, so how the budget is structured, how housing loans are provided, how housing supply is – this is all going to be a big focus.” – Kristrún Frostadóttir
Kristrún is keen to prove that a socially focused government can adeptly manage public finances. Her emphasis on running a budget "on the right side of zero" underlines her commitment to fiscal prudence alongside progressive social policies.
"It’s a big priority of mine to show that you can have a socially focused welfare-oriented government that can still run the budget on the right side of zero.” – Kristrún Frostadóttir