Have already discussed most issues

Kristrún Frostadóttir, the chair of the Social Democratic Alliance after …

Kristrún Frostadóttir, the chair of the Social Democratic Alliance after her meeting with the Liberal Reform Party and the People's Party yesterday. mbl.is/Eggert Jóhannesson

The government formation talks between the People's Party, the Liberal Reform Party and the Social Democratic Alliance are progressing well, according to Kristrún Frostadóttir, the chairman of the Social Democratic Alliance. The last few days have been spent discussing common ground, but they have now begun discussing areas of disagreement.

They will meet today to continue discussions.

Frostadóttir says that they have discussed most issues among themselves, but that they have come to different conclusions in those discussions. They have reached an agreement on some things, while others are still under consideration.

"There will naturally always be some compromises in this kind of government collaboration if it comes to fruition," Frostadóttir says in an interview with mbl.is after yesterday's meeting.

Some election promises may have to wait

Are you on the same page regarding European issues?

"We have come to a certain direction, so to speak. The implementation is not yet final, but we have talked our way through it well, so we just need to finalize the implementation.”

You talk about the state finances and there are expenditure and revenue issues that need to be considered. Many of the parties’ election promises look like they will cost a lot. Do you see many people having to give up some of their election promises, at least for now?

“At least we are doing our best to keep our promises - that is what these talks are about, among other things. But we are all aware that what is number one, two and three right now is the economy, and we in the Social Democratic Alliance said, among other things, that that would be the first starting point and that some things might have to wait to ensure a reduction in interest rates and inflation.”

According to Frostadóttir, the reshuffle of ministries has not been discussed, the only thing they have discussed in that regard is the reduction of the number of ministries.

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