Iceland’s prime minister says government is fixing the country

Prime Minister Kristrún Frostadóttir said the government was “fixing Iceland” by strengthening the foundations of society in a policy address to Iceland’s parliament, Alþingi, on Wednesday, according to mbl.is.

“We are fixing Iceland by fixing the foundations first. It takes time, but it is working. On that foundation, we can finally look together towards the country’s longer-term future,” she said.

Frostadóttir listed measures she said demonstrated the government’s progress, including improved respect and support for older people, more family doctors, a better healthcare system, lower energy prices in rural areas, lower housing costs, more first-time buyers and infrastructure development across the country.

“These are changes that improve people’s daily lives throughout the country every single day and strengthen Iceland,” she said.

The prime minister said the progress had been achieved in a short time after difficult years marked by the pandemic, seismic activity and several years of political stagnation. She attributed the results to the nation as a whole.

Frostadóttir said the government had reversed a decline in services for older people. The situation at Landspítali hospital for people waiting for nursing home places had not been better at any point so far this century, she said.

Three times as many people are now undertaking specialist training in family medicine as 10 years ago, according to the prime minister. She also said the government had increased the number of people in the most vulnerable groups who had a permanent family doctor.

She highlighted legislation linking increases in pensions from the Social Insurance Administration to wage increases. Frostadóttir said the change would make a significant difference to many people who had lost their ability to work or wanted a worry-free retirement but needed enough money to live on, just like working people.

Electricity bills in rural and cold areas had also been reduced, she said. The measure would be particularly significant for the accounts of farmers and companies in sparsely populated communities.

Frostadóttir placed strong emphasis on infrastructure development, saying the government had put Iceland back on the right track after energy projects had stalled and road maintenance had not been carried out adequately.

Preparatory work on the Fljótagöng tunnel project would begin this autumn, she said, and tunnelling in Iceland would resume next year.

On immigration, Frostadóttir said the government had restored firm control and created broad agreement. A comprehensive review of the granting of residence permits and the rules on deportations would continue this winter, she said.

She also said uncontrolled increases in the housing market had been stopped and that housing prices had fallen in real terms.