New Faroese coalition government publishes policy agreement

The incoming Faroese coalition government, led by Prime Minister Beinir Johannesen, has released its policy agreement, outlining priorities for economic stability, social welfare, and foreign relations, Kringvarp Føroya reports.

The agreement, signed by the People’s Party (Fólkaflokkurin), Union Party (Sambandsflokkurin), and Social Democratic Party (Javnaðarflokkurin), emphasises shared responsibility in addressing demographic challenges, housing shortages, and economic competitiveness.

### Key priorities
Demographics and housing
The coalition pledges improved conditions for families, including childcare, financial support, and housing supply to encourage residents—particularly young people—to remain in or return to the Faroe Islands. With declining birth rates and emigration, the government aims to create “real choices” for families through better infrastructure and economic incentives.

Foreign policy and autonomy
The Faroe Islands will seek expanded international representation, including potential membership in global organisations and free trade agreements. The government will negotiate with Denmark to secure formal self-determination in all matters concerning the Faroes, while maintaining NATO alignment. Foreign policy decisions affecting the Faroes must receive local approval.

Immigration will be managed to balance labour market needs with controlled population growth, ensuring flexibility for employers while limiting unrestricted inflows.

Economic and labour policies
The coalition commits to a stable, long-term fishing policy with 10-year licensing to ensure sustainable resource use and industry predictability. New technology, better raw material utilisation, and higher domestic value creation will be prioritised to strengthen exports.

Agriculture will receive stable conditions, with potential adjustments to fee structures if global energy prices impact competitiveness. Shipping and service industries—including tech, consulting, and remote work—will be developed to position the Faroes as a North Atlantic maritime hub.

Tourism growth must be sustainable, aligning with environmental and social capacity.

### Governance and funding
The annual Danish block grant is fixed at 541.8 million DKK. The coalition will explore Faroese membership or association with the European Free Trade Association (EFTA) to expand trade agreements, including with the EU and key export markets.

All policies will be reviewed through inter-party consultations to ensure alignment with the agreement’s goals.