Iceland struggles with government crises as citizens vote for a new parliament

Iceland is undergoing significant political changes as it holds parliamentary elections on November 30, 2024, following a period of turmoil within the coalition government led by Prime Minister Bjarni Benediktsson. The current elections have been prompted by disagreements among coalition partners regarding crucial issues such as immigration, energy policy, and economic management. Benediktsson's government, which included his conservative Independence Party alongside the centrist Progressive Party and the environmental-focused Left-Green Movement, has faced challenges in maintaining unity within this coalition. The recent political crisis reflects a broader trend in Iceland, where dissatisfaction with traditional parties has led to a fragmented political landscape. This fragmentation can be traced back to the economic crisis of 2008 that resulted in the collapse of major banks, fuelling public dissatisfaction and making room for new parties, including the Pirate Party and the Left-Green Alliance. With ten parties contesting in these elections, voter turnout is expected to remain high, reflecting Icelanders' engagement with the political process, unlike many other countries where such engagement has diminished. The ongoing challenges of inflation and housing shortages, exacerbated by a tourism boom and the effects of recent volcanic eruptions, have further complicated the political scenario, leading many young residents to struggle with finding affordable housing. The outcome of this election is crucial as it will determine how effectively the incoming government can address the pressing issues facing Iceland, ranging from inflation management to housing availability, while also restoring public trust in political institutions.