Iceland review - 2013, Page 82

80 ICELAND REVIEW
voterS WANt MortgAge reLIef
The government agreement clearly states that the Icelandic króna
is to be the country’s future currency. To support indebted home-
owners, 20 percent of the principals of all indexed mortgages taken
2007-2010, which skyrocketed with the collapse of the banks in
2008, is to be written off. Such actions await the settlement of the
estates of the failed banks, after which write down of assets held
by the banks’ creditors is to be negotiated. A prerequisite is the
abolishment of capital controls.
How will the government guarantee the stability of the króna
and prevent inflation from causing mortgages to blow up again? “It
isn’t possible to lift capital controls unless sufficient funds remain
in the country,” says Sigmundur. “It depends on the settlement of
the estates of the banks.”
At the press conference the new government leaders promised
to start working on mortgage relief straight away, yet warned that
it may take time. Bjarni stressed that his and Sigmundur’s govern-
ment is not about making promises they cannot keep and that all
actions are to be made in solidarity with the entire nation. “There
are many opportunities but if the atmosphere isn’t right, Iceland
will lose its competitive edge against other nations. We want to
create a better atmosphere and eliminate political uncertainty. This
government agreement is one giant communal project.” 
ElECTion rESulTS
independence Party:
26.7 percent (up by 2.8 percent), 19 seats
Progressive Party:
24.4 percent (up by 9.6 percent), 19 seats
Social democratic alliance:
12.9 percent (down by 16.9 percent), 9 seats
left green Movement:
10.9 percent (down by 10.8 percent), 7 seats
Bright future:
8.2 percent (new party), 6 seats
Pirate Party:
5.1 percent (new party), 3 seats
Twelve percent of votes went to parties that didn’t earn a
seat in parliament and 2.2 percent of ballots were empty.
Voter turnout was 81.4 percent and has never been lower.

POLITICs
The new ministers with President of iceland Ólafur ragnar Grímsson at the head of the table.
CloCKWiSE froM THE lEfT:
Hanna Birna kristjánsdóttir, Minister of the interior (iP, born 1966), M.Sc. in international and
European Politics;
Sigurður ingi Sveinsson, Minister of fisheries, agriculture and the Environment (PP, born 1962),
veterinary license;
ragnheiður elín Árnadóttir, Minister of industry and Trade (iP, born 1967), MS in international
relations (sharing the Ministry of industries with Sigurður);
kristján Þór Júlíusson, Minister of Health (iP, born 1957), captain and teaching licenses;
Sigmundur Davíð Gunnlaugsson (PP, born 1975), Prime Minister, BS in Business and Economics;
Bjarni Benediktsson, Minister of finance and Economic affairs (iP, born 1970), ll.M in law;
illugi Gunnarsson, Minister of Education and Culture (iP, born 1967), MBa;
eygló Harðardóttir, Minister for Social affairs (PP, born 1972), Ba in art History
(sharing the Ministry of Welfare with Kristján);
Gunnar Bragi Sveinsson, Minister for foreign affairs (PP, born 1968), matriculation examination.
p
h
o
to
B
y
G
e
Ir
Ó
la
Fs
s
o
n
13
-1
21
6
–
H
V
ÍT
A
H
Ú
SI
Ð
/
S
ÍA
CHEERS FOR
THE DUTY FREE
ALLOWANCES
This is how we do it at the
Duty Free Arrival Store in Iceland
Save more than €70.- off city prices!
When you purchase 1 L of a super premium vodka, 1 L
of our most popular apératif, and 6 L of our most popular beer.

Save more than €60.- off city prices!
When you purchase 1 L of our most popular liqueurs
and 9 L of Iceland‘s most awarded beer.

Save more than €47.- off city prices!
When you purchase 3 L of popular Italian wines
and 6 L of Icelandic beer.
Prices may vary due to exchange rates.
www.dutyfree.is CL
AS
SIC