Icelandic President Halla Tómasdóttir presented a new government led by Prime Minister Kristrún Mjöll Frostadóttir, according to Euractiv.
Frostadóttir pledged to lower inflation and interest rates, as well as hold a referendum on European Union membership by 2027. Her Social Democratic Alliance became the largest party in the 30 November snap election, entering a coalition with the People’s Party and Reform Party.
The Reform Party leader, Thorgerdur Katrín Gunnarsdóttir, is to become foreign minister. For the first time in Iceland, the leaders of all governing parties will be women. Frostadóttir, 36, also became the youngest prime minister in Iceland’s history.
The new coalition replaces the Independence Party government led by Bjarni Benediktsson, who came second in the election. Besides inflation and interest rates, Frostadóttir will consider reducing the number of ministries in order to cut administrative costs.
In addition to the EU accession issue, Iceland’s new government will invite experts to assess the pros and cons of switching to the euro.
