On Saturday, November 30th, parliamentary elections took place in Iceland. According to polls, due to high inflation and interest rates, economic issues are the primary concern for Icelandic voters in this election.
Most polling stations were open from 9 a.m. to 10 p.m. The election results are expected to be revealed on Sunday morning.
As reported by Reuters, the most concerning issues for voters include the economy, healthcare, and housing.
Weather forecasters predict a severe blizzard hitting the eastern region of Iceland on Saturday, which could possibly delay the election vote tallying time. The Icelandic government encourages voters to cast their votes early.
Polls show that with inflation and borrowing costs nearing the highest levels since the 2008 financial crisis, the increasingly severe economic issues have captured the attention of voters.
Iceland, with a population of 384,000, ranks among the wealthiest European countries per capita driven by tourism, fisheries, geothermal energy, and hydroelectric aluminum industries.
However, a series of volcanic eruptions near the capital city of Reykjavik have displaced thousands of people, coupled with the high costs of infrastructure repairs, the tourism industry has also suffered, making the situation more complex.
Polls indicate that the coalition government comprised of the Left-Green Movement, the Independence Party, and the Progressive Party, which lean slightly to the right, is likely to be overturned by voters.
Political scientist at the University of Iceland, Stefania Oskarsdottir, stated, “We have had the same alliance for seven years now, and it seems like there is a desire for new faces to join the government.”
In April this year, Katrin Jakobsdottir, the leader of the Left-Green Movement, stepped down as the Prime Minister and ran for President but was ultimately unsuccessful.
Following her, Bjarni Benediktsson took over as Prime Minister after the leader of the Independence Party. In October, he announced the dissolution of the Parliament and proposed early parliamentary elections.
The coalition of the three parties had disagreements on foreign policy, refugee accommodation, and energy issues, which ultimately led to the alliance breaking due to diverging opinions on immigration and other topics.
Over the past decade, Iceland’s population has grown by 20%, the highest in the Organization for Economic Cooperation and Development (OECD) countries, driven by high immigration rates, causing housing and healthcare pressures to surge.
Although inflation and interest rates have started to decline recently, the cost of living crisis has reignited the debate on joining the European Union in the election discussions.
Polls show that support for the pro-European Social Democrats and Liberal Reform Party has increased, collectively projected to gain 40% of the votes.
The last center-left Social Democratic Alliance, which was in power from 2009 to 2013, is expected to win slightly over 20% of the votes, followed by the center-right Liberal Reform Party.
Leader of the Social Democrats, Kristrun Frostadottir, told Reuters, “The biggest issue now is the cost of living.”
This 36-year-old economist took over as the leader of the Social Democrats two years ago and is a proponent of the Nordic welfare model, making her a popular candidate for the new Prime Minister position.