Iceland’s new government, led by Prime Minister Kristrún Frostadóttir, has announced plans to hold a referendum on European Union membership by 2027.
The administration, which takes office on Sunday, will also establish an expert panel to explore the benefits and drawbacks of adopting the Euro instead of keeping the Icelandic crown.
Recent polling shows growing support for EU membership, with over 54% of Icelanders in favor, a notable shift in a country historically divided on the issue. Many also believe joining the EU could improve financial conditions for households.
The new government, formed after November’s snap elections, includes the Liberal Reform Party and the centrist People’s Party, marking the first time all governing party leaders in Iceland are women. Frostadóttir, 36, will become the youngest Prime Minister in the country’s history. The government aims to tackle inflation, stabilize the economy, and reduce administrative costs by cutting the number of ministries.
