Icelandic parliament convenes amid rising inflation and protests over cost of living

The Icelandic Parliament, Alþingi, is convening amid rising inflation, household financial struggles, and high interest rates that are dominating discussions. Labor unions have organized protests at Austurvöllur at 4 PM, primarily in response to the escalating cost of living.

Party leaders from four different political groups gathered last night to explore solutions during a televised discussion. Þorgerður Katrín Gunnarsdóttir, the leader of the Viðreisn Party, emphasized the urgent need to reduce government spending to lower interest rates, comparing current rates in Iceland to those in Ukraine and other war-torn countries. She suggested the government could achieve this by selling state assets and completing various bank sales, although she specified that Landsvirkjun, the state energy company, should not be sold.

Arndís Anna Kristínardóttir Gunnarsdóttir, a member of the Pirate Party, highlighted the importance of finding collaborative housing solutions to mitigate inflation. She pointed out that while high interest rates do not affect capital owners significantly, they severely impact people needing loans or rentals, urging a re-evaluation of political priorities.

Sigmundur Davíð Gunnlaugsson, leader of the Center Party, echoed the need for a careful approach to state finances, particularly in healthcare and education, asserting that the housing market exacerbates inflation pressures. He stated that addressing state operations would lead to more stable and lower interest rates.

Meanwhile, Guðmundur Ingi Guðbrandsson, leader of the Left-Green Movement, noted a significant improvement in government finances in recent years, advocating for the enhancement of social housing systems through increased institutional funding.