Iceland Politics Explained, Who Holds Power in 2026

ICELAND · POLITICS

Iceland is run by a centre-left, three-party coalition under Prime Minister Kristrún Frostadóttir, and in August voters told it not to restart talks on joining the European Union. The country matters to Americans because it hosts Keflavík Air Base, a former US base beside its main international airport that NATO and US forces use under a 1951 defence agreement.

This guide names who holds power in Reykjavík and what the August vote changed. It is part of our Europe politics coverage.

Iceland Politics: Who Holds Power

Iceland is a parliamentary republic in which the president is head of state and the prime minister runs the government. President Halla Tómasdóttir holds a largely ceremonial office, while the prime minister and cabinet make most decisions.

Kristrún Frostadóttir, 38, an economist, has led the Social Democratic Alliance, a centre-left party, since 2022. She became prime minister on 21 December 2024.

Her coalition also includes Viðreisn (Liberal Reform), a pro-EU liberal party, and the People’s Party, a populist party focused on pensions and welfare, led by Inga Sæland. Together the three hold 36 of the 63 seats in the Althing.

Þorgerður Katrín Gunnarsdóttir of Viðreisn is foreign minister. All three governing parties are led by women, so the government is nicknamed the Valkyrie government.

The Opposition and the 2024 Election

Iceland last voted on 30 November 2024, with turnout of 80.2%. The Social Democratic Alliance won 15 seats on 20.8% of the vote, just ahead of the centre-right Independence Party with 14 seats on 19.4%.

Viðreisn won 11 seats, the People’s Party 10, the Centre Party, a conservative populist party, 8 and the Progressive Party 5. The Centre Party and the Progressive Party, together with the Independence Party, make up the opposition.

The Independence Party, the senior partner in the previous government, is now chaired by Guðrún Hafsteinsdóttir. The Progressive Party, a rural centrist party, chose Lilja Alfreðsdóttir as its chair in February 2026.

Why the EU Vote Matters

On 29 August 2026 Icelanders voted on whether to restart talks on joining the European Union. The No side won by 118,047 votes to 105,338, or 52.8% to 47.2%, on turnout of 82.6%, according to the National Electoral Commission and the foreign ministry.

The vote was advisory, not binding, and the government has said it will not resume membership talks during its term, which runs to 2028. It has not said whether it will ask parliament to withdraw Iceland’s 2009 EU application.

Both Reykjavík constituencies voted Yes and the other four voted No, which shows how divided the country is. Iceland therefore stays outside the EU but inside the European Economic Area, the pact that gives it access to the EU single market.

Foreign Policy Beyond the EU

On 11 March 2026 Iceland filed a declaration of intervention in South Africa’s genocide case against Israel at the International Court of Justice, the UN’s main court. The government announced it on 12 March, alongside the Netherlands.

On 8 September Iceland and 11 other countries said they would pursue restrictions on trade with Israeli settlements in the occupied West Bank. Their statement cited a housing tender in the E1 area, a contested West Bank site near Jerusalem.

Security and the United States

Iceland has no army, relies on NATO, the Western military alliance it co-founded in 1949, and has a 1951 defence agreement with the United States. That agreement lets US forces use Keflavík Air Base.

Iceland and the United States held their annual Strategic Dialogue in Reykjavík on 2 and 3 November 2026, according to a joint statement published by the Icelandic government. It marked 75 years of defence cooperation and followed a visit by US Secretary of State Marco Rubio.

The statement lists NATO deterrence, Arctic cooperation, domain awareness (watching the seas and skies) and critical infrastructure among the topics.

What It Means for US Readers

Nothing in the referendum result or the Strategic Dialogue statement points to a change in Iceland’s ties with NATO or the 1951 US agreement. Keflavík and Arctic security cooperation therefore continue as before.

Staying outside the EU leaves Iceland’s trade arrangements unchanged, with market access through the European Economic Area. Politics rarely affects visitors, since Iceland is in the Schengen area, Europe’s passport-free travel zone, and Americans can stay up to 90 days in any 180 without a visa.

What Is Not Known

No current poll has been confirmed since the referendum, so how voters would split today is unclear. The next election is not due until late 2028.

It is not yet clear whether the government will ask parliament to withdraw Iceland’s 2009 EU application. It has said only that it will not resume membership talks this term.

We did not check the full cabinet list against the government’s own site. Readers who need ministers beyond those named here should consult the ministries’ pages.

Frequently Asked Questions

Who is Iceland’s prime minister?

Kristrún Frostadóttir of the Social Democratic Alliance has been prime minister since 21 December 2024. She leads a coalition with Viðreisn and the People’s Party.

How many seats does the governing coalition hold?

The three governing parties hold 36 of the 63 seats in the Althing. They are the Social Democratic Alliance with 15, Viðreisn with 11 and the People’s Party with 10.

What did Icelanders decide on the EU?

On 29 August 2026 voters rejected restarting EU membership talks, 52.8% to 47.2%. The vote was advisory, and the government said it will not resume talks this term.

When is Iceland’s next election?

It is due in late 2028, four years after the last vote. No earlier date has been confirmed.

Does the United States have a base in Iceland?

US forces left Keflavík in 2006, but a 1951 defence agreement still lets them use Keflavík Air Base. Iceland has no army of its own.

Sources: Published 7 November 2026. Iceland foreign ministry, joint statement on the US–Iceland Strategic Dialogue, 3 November 2026; Iceland foreign ministry, referendum result, 1 September 2026; National Electoral Commission, referendum results; Iceland foreign ministry, ICJ intervention, 12 March 2026; National Electoral Commission, 2024 seat allocation; Iceland foreign ministry, new government takes office, 21 December 2024.