Minister defends necessary but painful 2027 budget measures

Foreign Minister and Viðreisn leader Þorgerður Katrín Gunnarsdóttir says Iceland’s 2027 budget bill demonstrates secure and responsible management of public finances, mbl.is reported.

Speaking to reporters at Bessastaðir, where the State Council met ahead of the opening of the autumn parliamentary session, Þorgerður Katrín said some of the budget measures would not be painless. She said it was necessary to support the Central Bank and keep households in mind as they faced excessively high inflation and interest rates.

Asked about fee increases that would affect private consumption, and whether they were advisable, she said the budget’s overall impact would be positive for households in the long term.

“It is a very important message to the market that the government is not sending the bill to future generations, even though it should have done so sooner,” Þorgerður Katrín said.