Cabinet of Kristrún Frostadóttir

The Cabinet is composed as follows:^[3]

Key policies were announced by the coalition government leaders:^[1]

• Key government commitments:
  • Housing security: Ensuring housing stability for citizens.
  • Poverty alleviation: Implementing measures to eliminate poverty.
  • Savings in administration: Rationalising state spending and simplifying the tax system.
  • Infrastructure investments: Developing infrastructure, including healthcare and social systems.
  • Support for the Icelandic language: Initiatives to protect and promote the language. Enhancing support for migrants learning Icelandic.
  • Strengthen energy infrastructure and simplify the permitting process.
  • Achieve climate neutrality by 2040, promote biodiversity, and protect marine areas.
  • Holding a referendum on resuming negotiations for a potential accession of Iceland into the European Union, targeting to be held in 2027.
• New initiatives:
  • Streamlining public administration.
  • Simplifying the tax system and eliminating exceptions.
  • Formulating policies on natural resources and their sustainable use.
  • Expanding transportation, including the construction of road tunnels.
  • Reducing the impact of indexation on the economy.
• Priorities mentioned by the Social Democratic Alliance (S):
  • Economic stabilisation.
  • Lowering interest rates.
  • Responsible public financial management.
  • Overcoming stagnation and supporting economic growth remain priorities.
  • Funding for initiatives would come from cost rationalisation and improving the efficiency of the tax system.
  • No plans to increase VAT in tourism but to introduce fees for managing access to certain tourist attractions.
  • Progressive fees or an analysis of income bases in fishing fees are being considered.
• Priorities mentioned by Viðreisn (C):
  • Streamlining public administration and reducing the number of ministries.
  • No increases in taxes, including income and capital gains taxes.
  • Introducing regulations for artificial intelligence.
  • Implementing new fees for accessing Iceland's natural attractions.
  • Increasing the number of police officers and strengthening public.
• Priorities mentioned by the People's Party (F):
  • Increasing the tax-free income threshold to ISK 60,000.
  • Introducing a lifetime pension for people with disabilities.
  • Establishing an ombudsman for the elderly.
  • Improving social support systems.
  • Addressing discrepancies between wages and pensions.
  • Strengthening the healthcare system.
  • Improving educational access for people with disabilities.
  • Revising immigration policies based on Nordic models.