Panama Papers and downfall of Progressive prime minister lead to early election where activist party has offered to give Edward Snowden asylum if it wins

This article is more than 3 years old

This article is more than 3 years old

Iceland holds parliamentary elections on Saturday, with polls showing the opposition led by the anti-establishment Pirate party could topple the current centre-right ruling coalition.



Icelanders’ faith in their political and financial establishment was shaken after the 2008 financial crisis and further eroded during 2016 when several senior government figures were named in the Panama Papers.

The biggest protests in the country’s history ultimately led to the resignation of the prime minister Sigmundur David Gunnlaugsson of the Progressive party and set the scene for the early election this weekend.

Founded by internet activists and led by poet Birgitta Jonsdottir, the Pirate party promises to clean up corruption, look at granting asylum to the former US spy contractor Edward Snowden and relax restrictions on the use of the bitcoin virtual currency.

Iceland election could propel radical Pirate party into power Read more

Recent polls show the Independence and Progressive parties stand to lose their current majority in the Althing, often described as the world’s oldest parliament, which means they would have to find a third coalition partner to stay in power.

The Pirates would be looking to form a majority with the current opposition parties: the Left-Green Movement, Social Democratic Alliance and Bright Future.

A 27 October poll conducted by Visir and Stod 2 showed 37% support for the government parties, while the four opposition parties polled around 47% combined.

In a tight race, newly established Vidreisn, the Reform party, could become kingmaker. The pro-European, liberal Vidreisn has not declared sides but some analysts predict it would favour the current government as its economic policy leans rightwards.

While the Independence party remains the biggest, support for the Pirates has been steady at around 20% over the past months, well above the party’s 5% in the 2013 election but below a 40% peak.

The current government parties point to their own success in reviving the economy. Fuelled by a tourism boom, Iceland has recovered from its 2008 banking collapse and economic growth this year is expected to hit 4.3%.

Parties on both sides have vowed to make no major changes to the ongoing lifting of remaining capital restrictions imposed after the financial crisis.

Turnout in Iceland is normally high at about 80%, but as in most countries young voters are less likely to cast their ballots, which could hit support for the Pirates.