Framsókn leader Lilja Alfreðsdóttir slams Icelandic government’s economic policy

Lilja D. Alfreðsdóttir, chair of the Framsókn party, told Morgunblaðið on 29 June 2026 that the Icelandic government shows “total contempt and indifference” toward an imminent breakdown in collective‑bargaining on the public‑sector wage market this autumn. She described the state of the economy as “dire” and listed six major policy mistakes, citing a lack of credibility, inadequate handling of inflation and wage negotiations, and the government’s focus on preparing for an EU referendum at the expense of tackling high inflation, slow growth and rising unemployment. Alfreðsdóttir pointed to provisional statistics from Statistics Iceland showing the state deficit closing on 24 billion ISK in the first quarter and demanded clear explanations of the government’s plan to meet its stated targets.