Following the parliamentary elections held in late 2024, a newly formed government has assumed leadership in Iceland, comprising the Social Democratic Alliance, the Reform Party, and the People’s Party. It aims to achieve economic stability and reduce interest rates while maintaining rigorous control over government finances. The coalition is set to simplify public administration and streamline state operations to enhance efficiency.   

The new government plans to formulate a parliamentary resolution to put the question of EU membership to a national referendum no later than 2027. Iceland’s foreign policy will be driven by human rights, peace, and respect for international law, fostering close cooperation with the European Union, Nordic countries, and NATO. A rigorous security and defence policy will be formulated. Moreover, independent foreign experts will prepare a comprehensive report on the advantages and disadvantages of the Icelandic króna with an assessment of other currency options.  

The governmental treaty addresses several opportunities for education, with a focus on strengthening Icelandic language teaching, literacy and access to diverse learning materials. Schools will receive added support to ensure the inclusion of children who do not speak Icelandic as their native language. Equal rights for all will be prioritised, and the government aims to tackle prejudices in society through enhanced education on equality and LGBTQ-related issues. Secondary schools and higher education institutions will be empowered to foster innovation and enhance accessibility around the country, according to the treaty. Higher education falls under a newly established ministry: Ministry of Culture, Innovation and Higher Education, while other educational sectors stay within the Ministry of Education and Children.