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Iceland
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Thursday, October 01, 2026
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Reykjavík City Council is under fire for allocating 50 million Krónur towards new chairs and an LED screen for the city council hall, drawing criticism from Kristrún Frostadóttir, the leader of the Social Democratic Alliance and current Prime Minister of Iceland, who highlighted the expenditure amid existing austerity measures. This spending decision has sparked debate regarding the city's financial priorities.
In economic news, inflation in September was measured at 5.9 percent, with Statistics Iceland attributing a significant portion of this increase (0.32 percentage points) to a higher Value Added Tax (VAT) on gasoline and diesel. Reduced airfares partially offset the overall rise in the consumer price index. Meanwhile, the European Free Trade Association Surveillance Authority (ESA) has initiated legal action against Iceland concerning a booking identified as '35'.
A continuing story involves police demanding payment from event organizers; two police departments have now collectively charged three organizers 47 million Krónur for three summer events, prompting two of the affected organizers to appeal these charges. Separately, a Member of Parliament's grandfather was reportedly administered strong psychiatric medication at Grund without the knowledge of his closest relatives, raising concerns about patient care and family involvement.
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Top Stories
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Reykjavík City Council is facing criticism for approving the expenditure of 50 million Krónur on new chairs and an LED screen for the council hall. The leader of the Social Democratic Alliance and Prime Minister, Kristrún Frostadóttir, has publicly questioned these spending priorities, particularly in a period of austerity.
Heimildin:
50 Million Krónur Spent on Chairs and LED Screen in City Council Hall
The leader of the Social Democratic Alliance criticizes the majority's spending priorities, which allocate 50 million Krónur for new chairs and a screen in the city council hall while austerity measures are in place.
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Iceland's inflation rate measured 5.9 percent in September, with the consumer price index rising by 0.39 percent. Statistics Iceland reported that an increase in VAT on gasoline and diesel contributed 0.32 percentage points to this rise, though reduced airfares provided some counterbalance.
Heimildin:
Inflation Measured at 5.9 Percent; Higher Fuel VAT Weighs Heavily
The consumer price index rose by 0.39 percent in September. Statistics Iceland estimates that the increase in VAT on gasoline and diesel alone raised the index by 0.32 percentage points. Reduced airfares partially offset this.
DV:
Þorsteinn Pálsson writes: The index dance has never solved the inflation problem
Þorsteinn Pálsson argues that the 'index dance' has not been effective in resolving the issue of inflation.
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Two police departments have demanded a total of 47 million Krónur from three event organizers for three events held over the summer. The event organizers have expressed concern over these charges, with two of them officially appealing the police's demands.
Heimildin:
Police Charge Event Organizers Tens of Millions
Two police departments have demanded a total of 47 million Krónur from three event organizers for three events held this summer. Event organizers are concerned, and two have appealed the police's charges.
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The European Free Trade Association Surveillance Authority (ESA) has initiated legal proceedings against Iceland concerning a specific booking, identified as 'Booking 35'.
Heimildin:
ESA Takes Iceland to Court Over Booking 35
The European Free Trade Association Surveillance Authority (ESA) is prosecuting Iceland regarding a booking identified as '35'.
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The grandfather of a Member of Parliament was reportedly administered strong psychiatric medication at Grund without the knowledge or consent of his closest relatives, leading to difficulties in recalling memories.
DV:
MP's grandfather given strong psychiatric medication at Grund without closest…
The grandfather of a Member of Parliament was administered strong psychiatric medication at Grund without the knowledge of his closest relatives, a situation described as difficult to recall memories from.
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A young woman suffered an electric shock in a substation and has since been transferred to Norway to undergo surgery. Reports indicate that multiple staff members were present at the site of the incident.
DV:
Young woman received current in the substation and was moved for surgery to…
A young woman was electrocuted in a substation and subsequently moved to Norway for surgery, with reports indicating multiple staff were present at the site.
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Daily news summaries from Iceland
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