Protest organized by trade unions in front of Althingi in Reykjavik over inflation and housing issues

Tensions are rising in Iceland as various trade unions, including the Icelandic Confederation of Labour and the Federation of State and Municipal Employees, are organizing a protest at noon today in front of the Althingi, demanding immediate government action to address inflation and housing issues.

With Parliament reconvening after summer break, Finance Minister Sigurður Ingi Jóhannsson is set to present the budget proposal for the upcoming year. Trade union leaders are expressing frustration over what they perceive as governmental inaction regarding economic matters, specifically the need to reduce inflation and interest rates, and to improve housing conditions.

Finnbjörn A. Hermannsson, president of the Icelandic Confederation of Labour, stated that there have been no significant measures taken to address housing challenges that are contributing to current inflation levels. He emphasized the government’s responsibility to tackle market competition issues and to protect consumers from rising energy costs.

Finnbjörn warned of possible disruptions in labor agreements if no progress is made, noting signs that the foundational agreements may be at risk. He urged the government not to delay in making necessary changes and referenced growing public unrest, saying, “There is heat in the people.”

The protest underlines widespread discontent with economic management in Iceland, as the public calls for swift governmental responses to pressing financial challenges.