Icelandic parliamentary election, 2007

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Parliamentary elections were held in Iceland on 12 May 2007. The Independence Party remained the largest party in the Althing, winning 25 of the 63 seats.

Background

Six parties participated in the elections: the two parties of the then government coalition, the right wing Independence Party and the centrist Progressive Party, and the opposition parties in the Alþingi, the Social Democratic Alliance, the Left-Green Movement and the Liberal Party; one new party, the environmentalist Icelandic Movement – Living Country also participated in the elections. The Fighting Union, an advocacy party for disabled and senior citizens' rights, failed to present lists of candidates in due time in five out of six constituencies, and therefore decided to withdraw from the elections.

Results

Party	Votes	%	Seats	+/–
Independence Party	66,754	36.6	25	+3
Social Democratic Alliance	48,743	26.8	18	~2
Left-Green Movement	26,136	14.3	9	+4
Progressive Party	21,350	11.7	7	–5
Liberal Party	13,233	7.3	4	0
Icelandic Movement – Living Country	5,953	3.3	0	New
Invalid/blank votes	2,902	–	–	–
Total	185,071	100	63	0
Registered voters/turnout	221,330	83.6	–	–
Source: Nohlen & Stöver

Aftermath

The then governing parties won a razor-thin majority, 32 seats against the opposition's 31. This was caused by considerable losses for the Progressive Party, which had the worst election in its more than 90-year history. Major outcomes of the elections were also the considerable strengthening of the Left-Green Movement, was the election's big winner, and the failure of Iceland's Movement – Living Land to clear the election threshold and enter the parliament, though it got 3.3% of the votes. After five days of speculation, it was decided on 17 May that the government would resign and the 12-year long coalition between Independence Party and Progressive would end. Later the same day, the leaders of the Independence Party and of the largest opposition party, the Social Democratic Alliance, Geir H. Haarde, the outgoing Prime Minister, and Ingibjörg Sólrún Gísladóttir, former mayor of Reykjavík, decided to try to form a new majority coalition. Haarde formally resigned on 18 May on behalf of his outgoing government. Simultaneously, he was assigned by the President of Iceland, Ólafur Ragnar Grímsson, the mandate to form a new majority coalition. The coalition meetings between the Independence Party and the Alliance were held in Reykjavík and at Þingvellir, where Alþingi was established in the year of 930. On 22 May the two parties reached an agreement, and the new government took over on 24 May. The ministers are as follows:

• Geir H. Haarde, Prime Minister (IP)
• Ingibjörg Sólrún Gísladóttir, Minister of Foreign Affairs (SDA)
• Árni M. Mathiesen, Minister of Finance (IP)
• Einar K. Guðfinnsson, Minister of Fisheries and Agriculture (IP)
• Össur Skarphéðinsson, Minister of Industries (SDA)
• Björgvin G. Sigurðsson, Minister of Commerce (SDA)
• Björn Bjarnason, Minister of Justice (IP)
• Þorgerður Katrín Gunnarsdóttir, Minister of Education (IP)
• Jóhanna Sigurðardóttir, Minister of Social Affairs (SDA)
• Guðlaugur Þór Þórðarson, Minister of Health (IP)
• Kristján L. Möller, Minister of Transportation (SDA)
• Þórunn Sveinbjarnardóttir, Minister of Environment (SDA)

The Government enjoyed a vast majority on Alþingi, with 43 out of 63 members supporting it. In the government's manifesto it is stated that it would focus on children, the elderly and the environment. The government aimed to lower taxes and raise benefits and invest heavily in education and transportation. The Social Democratic Alliance was more environmentalist and pro-EU and opposed the war in Iraq and Iceland's participation in the "Coalition of the Willing". Nevertheless, no action was announced to stop or reconsider the building of large-scale industrial complexes such as aluminium smelters and the development of new power plants, especially hydropower stations, or the country's participation in the war. A commission, though, to weigh the pros and cons of European Union membership was set up, but without a clear mandate.

On 23 May the chairman of the Progressive Party, Jón Sigurðsson, the outgoing Minister of Industries and Commerce, announced his resignation, due to poor results in the election. The vice chairman, Guðni Ágústsson, the outgoing Minister of Agriculture, took over the post.