Icelanders are set to vote for a new parliament on Saturday following tensions surrounding immigration, energy policies, and economic matters.
These issues compelled Prime Minister Bjarni Benediktsson to dissolve his coalition government and call early elections, reports AP.
This marks Iceland’s sixth general election since the 2008 financial crisis, which significantly impacted the nation’s economy and introduced a period of political instability, it said.
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Polls indicate a potential shift in the political landscape, as support for the three ruling parties has plummeted. Benediktsson, who became prime minister in April after his predecessor resigned, faced challenges maintaining unity within the coalition, which included his conservative Independence Party, the centrist Progressive Party, and the Left-Green Movement.
Iceland, with a population of roughly 400,000, has a deep-rooted democratic history, claiming to be the world’s oldest continuous parliamentary democracy. The Althingi, the island’s parliament, was established in 930 by Norse settlers, it added.
Election Process Overview
Citizens will elect 63 Althingi members, with seats allocated via both regional constituencies and proportional representation. A party must obtain at least 5% of the vote to earn seats in parliament. The outgoing parliament had eight parties, while ten are competing in this election.
Voter turnout is typically high by global standards, with 80% participation in the 2021 elections, said the report.
Reason for Early Election
Usually held during the warmer months, Iceland's elections this year are being conducted under unusual circumstances. On October 13, Benediktsson concluded that his coalition could not continue and requested President Halla Tómasdóttir to dissolve the Althingi.
“Society’s weakness is the absence of a dominant party or leader. We lack a charismatic figure with vision … which is a significant challenge for us,” stated Vilhjálmur Bjarnson, a former parliament member.
Why Are Iceland’s Politics Fragmented?
The division within Iceland’s political landscape emerged post-2008 financial crisis, which caused significant economic turmoil after the collapse of debt-ridden banks.
This crisis fostered disillusionment and distrust towards established political parties, leading to the rise of new groups, such as the environmentally-focused Left-Green Alliance and the Pirate Party, which advocates for direct democracy and personal freedoms, the report also said.
“This is one of the outcomes of the economic crash,” said Eva H. Önnudóttir, a University of Iceland political science professor. “The political landscape has changed. Older parties may hope for a return to the past, but that won’t happen.”
Key Issues
Like many Western nations, Iceland has grappled with rising living costs and immigration challenges.
Inflation peaked at 10.2% annually in February 2023, driven by the COVID-19 pandemic and Russia’s invasion of Ukraine. Although it slowed to 5.1% by October, it remains high compared to neighbouring countries, where the U.S. recorded 2.6% and the European Union 2.3%.
Immigration pressures are also significant, with asylum-seekers surpassing 4,000 annually in the past three years, a sharp increase from the former average of under 1,000. This has stirred social tensions in the traditionally homogenous country.
Impact of Volcanic Eruptions
Frequent volcanic eruptions in the southwestern region have displaced thousands and strained public resources. One year after the initial eruption forced Grindavik’s evacuation, many residents remain without stable housing, leading to frustrations over the government’s response.
The eruption has further intensified an affordable housing shortage exacerbated by Iceland’s booming tourism sector. Young residents are finding it increasingly difficult to secure housing, with short-term vacation rentals diminishing the supply available to locals, according to Önnudóttir.
“Housing is becoming a major issue in Iceland,” she remarked.