Progressive Party Proposes National Government Skip to content

Progressive Party Proposes National Government

By Iceland Review

The Progressive Party, the second-largest party of the opposition in Iceland’s parliament, presented various suggestions yesterday on how to lead the country through the economic crisis. One suggestion was a national government, a coalition of all parties.

“It has been discussed lately that the Progressive Party should join the government. However, that is no condition on our behalf—our suggestions can be implemented otherwise,” said Progressive Party chair Sigmundur Davíd Gunnlaugsson, Morgunbladid reports.

“However, it would be best if a national government was forged. Cooperation in parliament delivered extensive success in the Icesave matter and it will deliver a more beneficial agreement than we would otherwise achieve,” Gunnlaugsson stated.

The Progressive Party also wants to review the cooperation between Iceland and the International Monetary Fund in light of how much the circumstances have changed since the agreement was made.

Furthermore, the debt of homeowners should be corrected and interest rates lowered, the policy of the Central Bank should be changed, as well as bankruptcy regulations, the Progressive Party stated.

“Debt correction is a priority,” said Progressive Party MP Eygló Hardardóttir, but neither she nor the party’s chairman could say how much should be written off. Before last year’s elections, the Progressive Party wanted a 20 percent universal write-off.

“The backbone of the Progressive Party’s suggestions is good: that people work together across party lines is in the spirit of the work methods the government emphasizes,” commented parliamentary group chairman of the Social Democrats Björgvin G. Sigurdsson. “We need more solidarity in politics.”

“The Progressive wants lower interest rates and everyone can agree to that, but I’d like to point out that the Central Bank is an independent institution and the government cannot directly interfere with its policies,” Sigurdsson added.

Meanwhile, there is nothing new about the development of the Icesave dispute between the governments of Iceland, the UK and the Netherlands.

A parliamentary committee traveled to London this week and was made to understand that further negations can wait until after the parliamentary elections in the UK, Gunnlaugsson revealed at yesterday’s press conference.

Click here to read more about Icesave.

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