Talks on the formation of a centre-left coalition government led by the Left-green movement have collapsed, leaving no obvious solution to forming a new colition government in Iceland. The talks between the Left-greens, the Pirate party and the centrist Restoration and Bright future parties and the small Social Democratic Alliance broke down due to disagreement over taxes and government finances, the local news site visir.is reports.
According to visir the reason for the collapse of negotiations was unwillingness by the members of Restoration to accept higher taxes on corporations and the wealthy. Among the ideas floated by the Left-greens which Restoration balked at was the creation of a new high-income tax bracket, which would kick in at monthly wages over 1.5 million isk (160,000 USD/150,000 EUR annually). Restoration has positioned itself as a liberal centrist party. Many of its MPs and members are former members of the conservative Independence party who left due to frustration with growing conservativism within their old party.
Katrín Jakobsdóttir, the chairwoman of the Left-green movement, told the Icelandic National Broadcasting Service RÚV that the negotiations had turned out to be be similar to assembling a jigsaw puzzle with pieces from different sets.
Will the polar opposites find common ground?
Political pundits point out that with the inability of the two largest parties, the conservative Independence party and the leftist Left-green movement, to form either a center-right or center-left governments, only one option for a coalition is left on the table: Across the aisle government encompassing the two polar opposites and some of the parties in the centre. Such a solution, however, is highly unlikely. While the idea has been very popular among many pundits as well as supporters of the Independence party, the grass-roots of the Left-green movement is vehemently opposed to collaboration with the conservatives.
Another possibility at this stage is a minority government led by either the independence party or the Left greens, supported by the centrist parties.
Talks on the formation of a centre-left coalition government led by the Left-green movement have collapsed, leaving no obvious solution to forming a new colition government in Iceland. The talks between the Left-greens, the Pirate party and the centrist Restoration and Bright future parties and the small Social Democratic Alliance broke down due to disagreement over taxes and government finances, the local news site visir.is reports.
According to visir the reason for the collapse of negotiations was unwillingness by the members of Restoration to accept higher taxes on corporations and the wealthy. Among the ideas floated by the Left-greens which Restoration balked at was the creation of a new high-income tax bracket, which would kick in at monthly wages over 1.5 million isk (160,000 USD/150,000 EUR annually). Restoration has positioned itself as a liberal centrist party. Many of its MPs and members are former members of the conservative Independence party who left due to frustration with growing conservativism within their old party.
Katrín Jakobsdóttir, the chairwoman of the Left-green movement, told the Icelandic National Broadcasting Service RÚV that the negotiations had turned out to be be similar to assembling a jigsaw puzzle with pieces from different sets.
Will the polar opposites find common ground?
Political pundits point out that with the inability of the two largest parties, the conservative Independence party and the leftist Left-green movement, to form either a center-right or center-left governments, only one option for a coalition is left on the table: Across the aisle government encompassing the two polar opposites and some of the parties in the centre. Such a solution, however, is highly unlikely. While the idea has been very popular among many pundits as well as supporters of the Independence party, the grass-roots of the Left-green movement is vehemently opposed to collaboration with the conservatives.
Another possibility at this stage is a minority government led by either the independence party or the Left greens, supported by the centrist parties.
