Central Bank Proposes National Government Skip to content

Central Bank Proposes National Government

Chairman of the Central Bank board of directors Davíd Oddsson has allegedly mentioned twice in the last few days that forming a national government should be considered in light of the serious economic situation in Iceland.

A national government (thjódstjórn) is a coalition government comprised of most or all political parties that have representatives in the Althingi parliament. Such a government has only been formed once in Iceland, on April 17, 1939, Fréttabladid reports.

According to Fréttabladid’s sources, Oddsson first mentioned his idea in a special additional meeting at the Central Bank when the nationalization of Glitnir Bank was announced and for the second time on Tuesday during a cabinet meeting to which Oddsson was called to explain the matter from the viewpoint of the Central Bank.

Oddsson, who served as Iceland’s prime minister between 1990 and 2004, allegedly said that if there ever was a reason to form a national government in Iceland then it was now.

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