09.01.2025 - Iceland’s political landscape shifted significantly following the elections in late 2024. The Social Democratic Alliance (Samfylkingin) emerged as the largest party, securing 15 seats in the Althing, the Icelandic parliament. This victory positioned them to lead a coalition government with the Liberal Reform Party (Viðreisn) and the People’s Party (Flokkur Fólksins), marking a new chapter in Icelandic governance.
Potential policy changes under the new government
Led by Prime Minister Kristrún Frostadóttir of the Social Democratic Alliance, this coalition is expected to prioritize social welfare and equality. While specific policy directions are yet to be detailed, several key factors suggest that alcohol policy can be on the agenda as well:
Focus on social welfare The Social Democratic Alliance and the People’s Party have historically prioritized addressing poverty and inequality. Given the well-documented link between alcohol-related harm and social issues, it is likely that the government will scrutinize alcohol’s role in public health and consider harm reduction strategies. Notably, the Social Democratic Alliance has consistently supported ÁTVR’s monopoly, viewing it as a crucial public health measure. They have, however, expressed openness to minor adjustments, such as allowing small producers to sell alcohol directly from their production sites.
Liberalization of the alcohol market The Liberal Reform Party’s pro-market stance introduces a potential push for deregulation and increased private sector involvement in the alcohol market. Viðreisn has publicly stated that they view ÁTVR as a "child of its time" and advocate for abolishing its retail monopoly. They argue that private entities are fully capable of adhering to alcohol sales regulations, and they support increased consumer choice and market competition.
The ÁTVR debate The monopoly’s future has come under pressure from emerging online retailers like Santé, which recently opened a “showroom” for customers to browse products before completing purchases online. Such innovations challenge the traditional retail model and amplify calls for a more liberalized market. Although the coalition government has not formally addressed ÁTVR’s status, the Liberal Reform Party’s leanings suggest openness to reform. However, the loudest calls for abolishing the monopoly come from Sigríður Á. Andersen of the opposition Centre Party (Miðflokkurinn).
Streamlining government operations The coalition’s commitment to simplifying public administration may also impact ÁTVR. Efforts to streamline government agencies could bring changes to alcohol regulation and the structure of state-run enterprises like ÁTVR.
These positions reflect responses received by Forvarnarsamtökum (prevention organizations) to two key public health questions sent to all parties running for the November 30, 2024, Althing elections. The questions, distributed in late October, addressed critical public health issues that have dominated societal discourse in recent months and years.
Implications for alcohol policy
The combination of these factors—the government’s agenda, the debate over ÁTVR, and the evolving alcohol retail landscape—indicates a strong push for change in Iceland’s alcohol policies in the coming years. For public health advocates, it will be critical to monitor developments closely and engage in dialogue to ensure that any policy changes prioritize health and social well-being over commercial interests.