Iceland goes to the polls in general election

Iceland goes to the polls in general election AFP Published: Saturday May 12, 2007

Iceland votes in a general election Saturday with the ruling centre-right Independence Party tipped to win the most seats on the back of its strong economic record.

But no single party has won an absolute majority in Iceland since its independence from Denmark in 1944, and the six parties contesting the election are all in the running for coalition places in the next government.

Some 220,000 voters of this island nation in the North Atlantic are being called upon to elect the 63 members of the Althing, or parliament.

According to a poll published Friday in the Frettabladid daily, the centre-right Independence Party in power could garner 42.2 percent of votes, far ahead of the left-wing opposition Alliance party's 24.6 percent.

The junior member of the current government coalition, the centre-right formerly agrarian Progressive Party, looks set to lose as many as half of its seats, polls show.

Prime Minister Geir Haarde has campaigned on his Independence Party's strong economic record.

The island's economy, which was at risk of overheating in 2005 with growth of 7.2 percent, has since cooled down and registered growth of 2.5 percent last year with full employment and one of the world's highest standards of living.

The two left-wing parties, the Alliance and its rival the Left-Green Movement, have highlighted social issues in the campaign, calling for increased benefits for senior citizens and the disabled.

The biggest issue dividing Icelanders is whether to build more aluminium smelters, an industry that has swelled thanks to the island's abundance of hydroelectricity and which has contributed to its prosperity.

Environmentalists oppose the industry because it requires massive amounts of energy. The issue has divided Icelanders, but the government has stressed the positive impact the aluminium smelters have had on the economy and employment.

Iceland is not a member of the European Union but joined the European Economic Area in 1993. The issues of EU membership and the euro have been judged too divisive to be campaign issues.

Having nearly fully paid down the depts of our government, I can proclaim that our government and our country is one of the most succesful in the western world, at least relative to its size.

I think I heard that recently that the depts as percentage of GDP in France is 66%, here it is 3-6%, that must be considered extremely good position. Specially taken into account that our pension system is very close to beeing fully funded (in real money not some Trust fund IOU´s from the government), and will be in 10 to 15 years. The situation in the mainland (i.e. in Europe) is by far worse.

But still we seem to be close to loose power in these way to exciting elections despite people beeing happy obout our good PM and my party, the Independence Party (its agenda can be summed up in Independent nation, Independent individuals, strong private economy and a secure safety net).

I wish foreign media would discuss our good situation more, we are the living proof of Reaganomics, lower taxes mean stronger economy, less (virtually nonexistent) unemployment and SURPRISE more tax revenues, wich made us possible to pay down our depts (wich were extensive) and then lower our taxes even more.

The majority hangs in the balance. It would be very disastrous if the left wingers would gain control and ruin our good work. To name a few I am going to quite my party´s, the Independence party ((its agenda can be summed up in Independent nation, Independent individuals, strong private economy and a secure safety net) website,

http://www.xd.is/xd/2007/forsida/ (given that I translate it correctly):

GDP growth has been 4.5% on average since 1996.

The complete output of the nation (GDP?) has increased by 50% since 1996 - (propably more if other numbers are to be trusted)

Unemployment for the last decade has been virtually nonexistent, less than 3% on average.

Income taxes have been lowered from 41.9% in 1996 to 35.7% today - it is not as bad as it sounds it does not include a high amount for untaxed money and personal deductibles and this is the total income tax by both the government and local governments wich get around 11 percent points.

The VAT on food was lowered to 7% - and simplified a lot in the same time, before food was either in the 14% VAT or 24,5% VAT bracket and now every food item and more things are in the lower bracket wich was in its entirity lowered to 7%.

The first untaxed money was made higher from the first 58 thousand ISK in 1995 to 90 thousand ISK in 2007 untaxed- the dollar costs around 70 ISK.

The government has been run by more windfall than anytime before

Governments depts have been lowered by many hundreds of billions of ISK´s in the last few years. By the end of 2001 they were 21% of GDP, now they are 6% of GDP - and all foreign depts is nearly paid up, and I have actually heard that it is as low as 3% of GDP the whole depts of the government. Compare this to I think 66% of France´s GDP (what is it in the US?) plus we having, unlike them, a nearly fully funded pension system.

Seriously, have you heard about such successes anywhere else? Would it not be good if the US had as much good changes?

Hey, I am going to show you one Icelandic election advertisement from my party:

http://youtube.com/watch?v=ZLL49JoLIpg&mode=related&search=

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