Identifier
Created
Classification
Origin
07REYKJAVIK87
2007-03-28 17:27:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Reykjavik
Cable title:  

ICELAND: PARLIAMENT'S SHORT YET BUSY YEAR

Tags:  PGOV PREL IC 
pdf how-to read a cable
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UNCLAS SECTION 01 OF 02 REYKJAVIK 000087 

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E.O. 12958: N/A
TAGS: PGOV PREL IC

SUBJECT: ICELAND: PARLIAMENT'S SHORT YET BUSY YEAR


UNCLAS SECTION 01 OF 02 REYKJAVIK 000087

SIPDIS

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: PGOV PREL IC

SUBJECT: ICELAND: PARLIAMENT'S SHORT YET BUSY YEAR



1. (U) Summary: Due to the upcoming May 12 parliamentary election
the Icelandic parliament, the Althing, cut its 2006-2007 session
short. Nevertheless, the Althing passed 114 bills and 33
resolutions, the most contentious of which was the reestablishment
of the Icelandic National Broadcasting Service as a public
corporation. Other notable bills include: a reduction in the VAT
and commodity charges on food; de facto legalization of
prostitution; and a new legal framework for Icelandic participation
in international peacekeeping. End Summary.

BACKGROUND
--------------

2. (U) The 2006-2007 legislative session of the Althing began
October 2 and adjourned early this year, on March 18, because of the
May 12 parliamentary elections. Members of parliament (MPs) are
thus granted approximately two months to launch their re-election
campaigns and lobby for the support of their respective political
parties. The Althing passed a total of 114 bills and 33 resolutions,
and 34 unscheduled debates took place [Comment: MPs can request
time to discuss topics they think are relevant at the moment, such
as top news stories and possible parliamentary response to them.
End Comment.] Despite a packed agenda and heated debates over both
small and large issues, which are characteristic of short
pre-election legislative sessions, the MPs still managed to show
great efficiency in passing laws.

ONE CONTENTIOUS ISSUE...
--------------

3. (U) As always there were several hotly contested issues in the
2006-2007 session. MPs spent approximately 70 hours debating the
merits of a bill to reestablish the state-run Icelandic National
Broadcasting Service (RUV) as a public corporation. Proponents of
the bill argued that it would grant the institution increased
flexibility and a better market position, as well as strengthen its
role as a public service broadcaster. The opposition parties
initiated a filibuster, but in the end the coalition partners were
successful in hammering the bill through.

...BUT OTHERS NOT TO BE FORGOTTEN
--------------

4. (U) The parliament unanimously passed a bill that reduces the
food Value Added Tax (VAT) and commodity tax, that is expected to
deliver a 7-10 percent decrease in food prices for the average
Icelandic family. In addition, MPs passed a campaign finance reform

bill that limits the contributions of individuals and corporations
to political parties, but increases direct state funding.


5. (U) The Althing passed a bill establishing a more robust legal
framework for the Iceland Crisis Response Unit (ICRU) and other
Icelandic participation in international peacekeeping projects. The
bill clearly delineates the legal rights of peacekeepers,
responsibilities, rights, and duties, and enshrines a more civilian
role for the ICRU. Observers consider the passing of this bill
important because the GOI's increase in contributions to
international peacekeeping operations, both through the ICRU and by
funding to UN peacekeeping operations, has gone up drastically in
the past few years.


6. (U) In November last year the Liberal Party criticized the
government for allowing the free passage of labor from EU states in
Eastern Europe, and mishandling of integration policies for
immigrants. The government reacted quickly and allocated ISK 100
million (1.4 million USD) for Icelandic classes for foreigners and
will put a halt on labor coming from new EU member states Romania
and Bulgaria until January 1, 2009. On a related note the law on
Icelandic citizenship was amended in March, stipulating that
applicants for citizenship must pass an Icelandic language test in
order to become an Icelandic citizen.


7. (U) The Minister of Justice introduced a bill to amend the
Chapter on Sexual Offenses in the General Penal Code in March last
year, but the Althing did not pass the bill until the final days of
the 2006-2007 legislative session. The bill broadened the
definition of rape, and essentially legalized prostitution as a main
source of income, but banned its public advertising and use of
intermediaries (pimps).

EXIT OF POLITICAL HEAVYWEIGHTS
--------------

8. (U) During the recent parliamentary session one MP passed away
and seven MPs resigned from the Althing. The most notable of the
seven were David Oddsson (Independence Party) and Halldor Asgrimsson
(Progressive Party),who each had served as Prime Minister and
Foreign Minister. Consequently, the Independence and Progressive
Parties' (the ruling coalition partners) leadership changed as well
when Oddsson and Asgrimsson resigned as chairmen of their parties.
In addition, three MPs switched parties, without affecting the
balance of power.

REYKJAVIK 00000087 002 OF 002




9. (SBU) Comment: In the run-up to parliamentary elections, the MPs
can point to electorate-friendly successes such as the food VAT
reduction and acts to step up the integration of immigrants to
Iceland. David Oddsson's and Halldor Asgrimsson's departures marked
a changing of the guard that signals a generational shift in
Icelandic politics. A number of new people emerged in the parties'
primary elections this winter and there is speculation that almost
half of the current MPs could be replaced. End Comment.

VAN VOORST