The pillars of Icelandic society strong

"The fundamental pillars of Icelandic society are strong and good to build further upon which are the results of constant work and foresight of past generations. At the turn of the year it is appropriate to remember that, be thankful for that and respect that," Sigmundur Davíð Gunnlaugsson, Prime Minister of Iceland, said in his New Year's Eve Address. He said the passing year had been good to Icelanders in many ways.

The Prime Minister said that Icelanders were in the front rank of nations almost regardless of which international measurement was used. For example regarding equality, living standards, social safety, health services, literacy, life expectancy and low level of poverty. Representatives of Iceland had also been very successful internationally in the fields of arts, science, academic work as well as sports.

"We should be proud of these achievements and pleased. Not to put ourselves on a high horse at the expense of others or brag over our achievements and take them for granted. No, we should be proud of what we and past generations have achieved because it reminds us that we can do even better," Gunnlaugsson said adding that the Icelandic people had gained almost unique success in recent decades in building up their society.

The Prime Minister furthemore said Iceland's economy was on the right track, in the wake of the economic crisis hit the country in the autumn of 2008, with e.g. growing purchasing power and low inflation. Unemployment was down to 3 percent, thousands of new jobs had been created in the past 18 months, taxes had been lowered and the welfare system strenghtened. Furthermore mortgage debts would be reduced through a special government program.

However, capital controls were still in place in Iceland. The biggest obstacle to removing them were the estates of the failed banks which had been operated longer than desirable. The Prime Minister said his government was well prepared to take actions early in the new year regarding that after extensive work to analyse how best to tackle the remainder of the economic crisis. Whichever route would be taken the government would never depart from its principal goal of defending the interests of the Icelandic people.

„The Icelandic people have already shouldered all the burden that can be expected as a result of the international economic crisis. Burden that could easily have been much greater and even unbearable had the nation not stood on her rights. While solving this issue it is vital that we Icelanders stand together. Then this great matter of interests to the Icelandic people, as with all other, will be successfully resolved."