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🇮🇸 Iceland /Economy & Trade

Not painless, but necessary

From Morgunblaðið · () Icelandic

Translated from Icelandic and summarized by DistantNews. Read the original for the full story.

At a glance

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  • Foreign Minister and Reform Party leader Þorgerður Katrín Gunnarsdóttir backed Iceland’s 2027 budget proposal as responsible fiscal management.
  • She said some measures would hurt, but argued that supporting the Central Bank and easing pressure on households required action.
  • She said the budget would benefit households over the longer term and avoid passing the bill to future generations.

Iceland’s 2027 budget proposal may not be painless, but Foreign Minister and Reform Party leader Þorgerður Katrín Gunnarsdóttir says it is necessary.

Speaking to reporters at Bessastaðir before the opening of the autumn parliamentary session, Þorgerður said the proposal showed secure and responsible management of public finances. Some of its measures would hurt, she acknowledged, but she said the government needed to support the Central Bank and keep households in mind as they face excessively high inflation and interest rates.

Asked about fee increases that would affect private consumption, and whether introducing them was advisable, she said the budget’s overall effect would be positive for households over the longer term.

“It is a very important message to the market that the government is not sending the bill to future generations, even if it should have done so earlier,” she said.

It is a very important message to the market that the government is not sending the bill to future generations, even if it should have done so earlier.

· Þorgerður Katrín GunnarsdóttirThe foreign minister defended the budget’s long-term fiscal approach while acknowledging that some measures would be painful.
About this summary

Originally published by Morgunblaðið in Icelandic. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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