Iceland's New Coalition: A Political Shift in Government

The Social Democratic Party of Iceland is set to form a new government coalition, replacing the current administration led by Bjarni Benediktsson. The coalition, led by Kristrun Frostadottir, will focus on reducing inflation and interest rates while cutting administrative costs by reducing ministries.

The Social Democratic Party of Iceland, having secured its position as the leading party in November's parliamentary elections, is poised to announce a new coalition government. The development comes after the fall of Bjarni Benediktsson's government, which was formed with the conservative Independence Party, Left Green Movement, and center-right Progressive Party.

The party leader, Kristrun Frostadottir, who is likely to become the new prime minister, is in the final stages of forming this coalition with the centrist People's Party and the left-leaning pro-European Reform Party. This new political alignment is expected to steer the country toward economic reforms.

The incoming government has outlined its primary objectives, which include tackling inflation and reducing interest rates. Additionally, the coalition plans to streamline government operations by cutting down the number of ministries, thereby aiming for cost efficiency. This change comes as part of their broader economic strategy, as reported by RUV.

(With inputs from agencies.)