Davíð Oddsson (born 17 January 1948 in
ReykjavíkReykjavík is the capital and largest city of Iceland. Its latitude at 64°08' N makes it the world's most northern capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay...
) is an
IcelandThe Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population...
ic politician and the longest-serving
Prime Minister of IcelandThe Prime Minister of Iceland is Iceland's head of government. The prime minister is appointed formally by the President and exercises executive authority along with the cabinet subject to parliamentary support....
, holding office from 1991 to 2004. He also served as
Foreign MinisterThe Icelandic Ministry for Foreign Affairs is a cabinet-level ministry responsible for the country's foreign relations. Since 1 February 2009, the minister has been Össur Skarphéðinsson of the Social Democratic Alliance.- Former ministers :...
from 2004 to 2005. Previously, he was
Mayor"Mayor" is a modern title used in many countries for the highest ranking officer in a municipal government....
of Reykjavík from 1982 to 1991, and he chaired the board of governors of the
Central Bank of IcelandThe Central Bank of Iceland is the central bank or reserve bank of Iceland. It has served in this capacity since 1961, when it was created by an act of the Alþingi out of the central banking department of Landsbanki Íslands, which had had the sole right of note issuance since 1927 and had...
from 2005 to 2009. The collapse of Iceland's banking system led to vocal demands for his resignation both by members of the Icelandic public and by Icelandic Prime Minister
Jóhanna SigurðardóttirJóhanna Sigurðardóttir is an Icelandic politician and the current Prime Minister of Iceland. She had previously been Iceland's Minister of Social Affairs and Social Security from 1987–1994 and 2007–2009. She has been a member of the Althing for Reykjavík constituencies since 1978, winning...
, which resulted in him being replaced as head of the Central Bank in 2009. In September 2009 he was hired as the editor of
MorgunblaðiðMorgunblaðið is a newspaper published in Iceland, founded by Vilhjálmur Finsen & Olaf Björnsson. The first issue, only eight pages long, was published on November 2, 1913. Six years later, in 1919, the corporation Árvakur bought out the company...
, one of Iceland's largest newspapers.
Early years
Davíð Oddsson was born in
ReykjavíkReykjavík is the capital and largest city of Iceland. Its latitude at 64°08' N makes it the world's most northern capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay...
. His father was a medical doctor, and his mother a secretary. His parents were not married, and he was brought up in his maternal grandfather’s home in
SelfossSelfoss is a town in southern Iceland on the banks of Ölfusá river. It is a part of the municipality Árborg. The Ring Road runs through the town on its way between Hveragerði and Hella...
, a small town in the south of Iceland, until his grandfather died. He then moved with his mother and grandmother to Reykjavík. He took an early interest in acting and attended an acting school for a while. He also attended the
gymnasiumA gymnasium is a type of school providing secondary education in some parts of Europe, comparable to English grammar schools or sixth form colleges and U.S. college preparatory high schools...
Menntaskólinn í ReykjavíkMenntaskólinn í Reykjavík is the oldest gymnasium in Reykjavík, Iceland....
where he graduated in the spring of 1970. Davíð married Ástríður Thorarensen, a nurse; they have one son, Þorsteinn who is a judge at the district court at Akureyri. The next six years, Davíð read law at the
University of IcelandThe University of Iceland is an Icelandic state university, founded in 1911. During its first year of operation 45 students were enrolled. Today, the university provides instruction for about 13,650 students studying in eleven faculties.-History:...
, working almost full-time as well. He was assistant to the director of a small theatre (now the Borgarleikhúsið) for a while, and produced, with two friends (
Þórarinn EldjárnÞórarinn Eldjárn is an Icelandic writer born on 22 August 1949. He studied at the University of Lund and the University of Iceland. He has written numerous poems, stories, and novels. He has also translated numerous books into Icelandic, including Alice in Wonderland. In addition, he has produced...
and
Hrafn GunnlaugssonHrafn Gunnlaugsson is an Icelandic moviemaker. He is the brother of the actress Tinna Gunnlaugsdóttir. He is mostly known for his series of Viking movies, sometimes called "Cod Westerns".- Filmography :...
), a popular radio comedy show for two years; he was for a while a political commentator at the newspaper
MorgunblaðiðMorgunblaðið is a newspaper published in Iceland, founded by Vilhjálmur Finsen & Olaf Björnsson. The first issue, only eight pages long, was published on November 2, 1913. Six years later, in 1919, the corporation Árvakur bought out the company...
, and the director of publication of Almenna bókafélagið, a conservative publishing house. He had been elected to the Municipal Council in
ReykjavíkReykjavík is the capital and largest city of Iceland. Its latitude at 64°08' N makes it the world's most northern capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay...
in 1974, for the
Independence PartyThe Independence Party is a centre-right political party in Iceland. It was formed in 1929 through a merger of the Conservative Party and the Liberal Party. The party supports Icelandic membership of NATO but is opposed to the idea of joining the European Union. The party's position on EU...
.
Mayor of Reykjavík (1982–1991)
Davíð Oddsson was a member of a group of young conservative-libertarians within the
Independence PartyThe Independence Party is a centre-right political party in Iceland. It was formed in 1929 through a merger of the Conservative Party and the Liberal Party. The party supports Icelandic membership of NATO but is opposed to the idea of joining the European Union. The party's position on EU...
who felt that the party should support more strongly attempts to extend
economic freedomEconomic freedom is a term used in economic research and policy debates. As with freedom generally, there are various definitions, but no universally accepted concept of economic freedom...
in the heavily regulated Icelandic economy. The group included
Þorsteinn PálssonÞorsteinn Pálsson was Prime Minister of Iceland for the Independence Party from 8 July 1987 to 28 September 1988. Þorsteinn led the independence party from 1983 to 1991, when he lost an inner partial election to then vice-chairman of the party and mayor of Reykjavík, Davíð Oddsson.Prior to his...
, Geir H. Haarde, Jón Steinar Gunnlaugsson,
Kjartan GunnarssonKjartan Gunnarsson is an Icelandic lawyer, best known for serving for 26 years as the executive director of the Icelandic right-wing Independence Party, from 1980 until 2006. He has also worked for Landsbanki bank. He is a longtime supporter and friend of former Icelandic Prime Minister Davíð...
, Magnús Gunnarsson,
Brynjólfur BjarnasonBrynjólfur Bjarnason was an Icelandic communist politician. He became a student at the University of Copenhagen, and in 1923 he became a communist during a stay in Berlin. After returing to Iceland, he became a teacher...
and
Hannes Hólmsteinn GissurarsonHannes Hólmsteinn Gissurarson is a professor of political science at the University of Iceland and a frequent commentator on current affairs in the Icelandic media. He is best known as a controversial spokesman for free market policies, and for neoliberalism or classical liberalism.-Education and...
, and they published the magazine
Eimreiðin from 1972 to 1975; in the following years they followed with interest what was happening in the
United KingdomThe United Kingdom of Great Britain and Northern Ireland is a sovereign state located off the northwestern coast of continental Europe. It is an island country, spanning an archipelago including Great Britain, the northeastern part of Ireland, and many small islands...
under
Margaret ThatcherMargaret Hilda Thatcher, Baroness Thatcher LG, OM, PC, FRS served as Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party from 1975 to 1990. She is the only woman to have held either post....
and in the
United StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
under
Ronald ReaganRonald Wilson Reagan was the 40th President of the United States and the 33rd Governor of California .Born in Tampico, Illinois, Reagan moved to Los Angeles, California in the 1930s...
; they also read books and articles by and about
Milton FriedmanMilton Friedman was an American economist, statistician and public intellectual, and a recipient of the Nobel Memorial Prize in Economics...
,
Friedrich HayekFriedrich August von Hayek CH , was an Austrian and British economist and philosopher known for his defense of classical liberalism and free-market capitalism against socialist and collectivist thought. He is considered by some to be one of the most important economists and political philosophers...
and
James M. BuchananJames McGill Buchanan, Jr. is an American economist known for his work on public choice theory, for which he won the 1986 Nobel Prize in Economics. Buchanan's work initiated research on how politicians' self-interest and non-economic forces affect government economic policy.-Biography:Buchanan...
, who all visited Iceland in the early 1980s and whose messages of limited governments, privatisation, and liberalisation of the economy had a wide impact. Davíð got a chance to further his ideals when, in 1982, the
Independence PartyThe Independence Party is a centre-right political party in Iceland. It was formed in 1929 through a merger of the Conservative Party and the Liberal Party. The party supports Icelandic membership of NATO but is opposed to the idea of joining the European Union. The party's position on EU...
, under his leadership, regained the majority in the Reykjavík Municipal Council which it had lost four years earlier to three left-wing parties. Davíð swiftly reduced the number of Council members from 21 to 15, and merged the largest fishing firm in Reykjavik which belonged to the municipality and had been a huge burden, with a private fishing firm and then sold off the municipality’s assets in the new firm,
GrandiHB Grandi is an Icelandic fishing industry company, one of the largest in the country, based in Reykjavík. The company formed from the merger of Grandi from Reykjavík and Haraldur Böðvarsson from Akranes. on January 1, 2004. Later that year, the company merged with Tangi from Vopnafjörður and...
, now one of the biggest fishing firms in Iceland. Incidentally, the director of Grandi,
Brynjólfur BjarnasonBrynjólfur Bjarnason was an Icelandic communist politician. He became a student at the University of Copenhagen, and in 1923 he became a communist during a stay in Berlin. After returing to Iceland, he became a teacher...
, who oversaw what was Davíð’s first privatisation, later became the director of the Icelandic Telephone Company which turned out to be Davíð’s last privatisation in government (2005). As Mayor of Reykjavík, Davíð was behind the building of
Reykjavík City HallRáðhús Reykjavíkur is situated by the Tjörnin in Reykjavík. It houses the offices of the mayor of Reykjavík, a café and a large 3D map of Iceland. It is sometimes used for art exhibitions....
by
The PondTjörnin is a small lake in central Reykjavík, the capital of Iceland. Although it is not among the biggest lakes in the country, it is one of the best known....
in Reykjavík, and of
PerlanPerlan is a landmark building in Reykjavík, the capital of Iceland. It is 25.7 metres high. It was originally designed by Ingimundur Sveinsson. Perlan is situated on the hill Öskjuhlíð where there had been hot water storage tanks for decades. In 1991 the tanks were updated and a hemispherical...
, a revolving restaurant over the old water tanks in
ÖskjuhlíðÖskjuhlíð is a hill in the centre of Reykjavík, Iceland. It is 61 metres above sea level. The hill is a designated outdoors area and is covered with trees. At the top of the hill stands Perlan, on top six water tanks...
. Despite his
libertarianLibertarianism is a term adopted by a broad spectrum of political philosophies which advocate the maximization of individual liberty and the minimization or even abolition of the state...
leanings, Davíð also supported the
Reykjavík City TheatreThe Reykjavik City Theatre is the second largest theater in Iceland, located in Reykjavík. The theater produces at least six new productions each year. Guðjón Pedersen is the current artistic director of the theater....
, in particular the building of a new theatre house which was opened in 1989. In the nine years when Davíð was Mayor of Reykjavík, a new district,
GrafarvogurGrafarvogur is one of the largest residential suburbs of Reykjavík, Iceland. It is a relatively new neighbourhood, major construction began in the late 1980s and continued well into the 90's. Now it has established itself as a "good" family-friendly neighbourhood. The average income of its...
, was built and a new shopping area around the shopping mall
KringlanKringlan is the largest shopping mall in Reykjavík with over 170 shops, restaurants and services. Built in 1987, it contains everything from a library, theatre and cinema to a liquor store, candy stores and a pub. It has grown over the years, and is thought by many to be the biggest threat for the...
. A forceful and uncompromising Mayor of Reykjavík, Davíð was much-criticized by the left-wing opposition in the Municipal Council.
Alliance with the Social Democrats (1991–1995)
In 1983, Davíð Oddsson’s old friend and ally,
Þorsteinn PálssonÞorsteinn Pálsson was Prime Minister of Iceland for the Independence Party from 8 July 1987 to 28 September 1988. Þorsteinn led the independence party from 1983 to 1991, when he lost an inner partial election to then vice-chairman of the party and mayor of Reykjavík, Davíð Oddsson.Prior to his...
, had been elected leader of the
Independence PartyThe Independence Party is a centre-right political party in Iceland. It was formed in 1929 through a merger of the Conservative Party and the Liberal Party. The party supports Icelandic membership of NATO but is opposed to the idea of joining the European Union. The party's position on EU...
, and in 1989 Davíð had been elected deputy leader, or Vice-Chairman of the Party. After Þorsteinn Pálsson had to resign as Prime Minister in 1988, after falling out with the leaders of his two coalition parties, there was a widespread feeling in the party that its leadership should be changed, and much pressure on Davíð to stand against Þorsteinn. This he did in 1991, and became leader of the
Independence PartyThe Independence Party is a centre-right political party in Iceland. It was formed in 1929 through a merger of the Conservative Party and the Liberal Party. The party supports Icelandic membership of NATO but is opposed to the idea of joining the European Union. The party's position on EU...
. Under Davíð Oddsson’s leadership, in the parliamentary elections of 1991, the
Independence PartyThe Independence Party is a centre-right political party in Iceland. It was formed in 1929 through a merger of the Conservative Party and the Liberal Party. The party supports Icelandic membership of NATO but is opposed to the idea of joining the European Union. The party's position on EU...
regained most of the support it had lost in 1987 when it had been severely weakened because of a split in its ranks. In record time, Davíð formed a coalition government with the social democrats,
AlþýðuflokkurinnAlþýðuflokkurinn was an Icelandic Political Party based on social democratic ideas. It was founded in 1916 as the political field of the labour unions of Iceland....
, whose leader,
Jón Baldvin HannibalssonJón Baldvin Hannibalsson is an Icelandic politician.-Education:The son of Hannibal Valdimarsson, Jón Baldvin Hannibalsson earned an MA in Economics from University of Edinburgh in 1963. He studied at Stockholm University from 1963-1964, and studied teacher education at the University of Iceland in...
, became Minister of Foreign Affairs. Jón Baldvin and Davíð jointly decided that Iceland should become the first state to recognise the reinstatement of the sovereignty and independence of the three Baltic countries,
EstoniaEstonia , officially the Republic of Estonia , is a country in Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia , and to the east by the Russian Federation...
,
LatviaLatvia , officially the Republic of Latvia is a country in the Baltic region of Northern Europe. It is bordered to the north by Estonia , to the south by Lithuania , to the east by the Russian Federation , and to the southeast by Belarus . Across the Baltic Sea to the west lies Sweden...
and
LithuaniaLithuania , officially the Republic of Lithuania is a country in Northern Europe, the southernmost of the three Baltic states. Situated along the southeastern shore of the Baltic Sea, it shares borders with Latvia to the north, Belarus to the southeast, Poland, and the Russian exclave of...
, after the fall of Soviet Union.
Davíð’s government inherited a huge budget deficit and a burden of unproductive investments; much money had been spent on fish farming for example, with little result. Inflationary pressures were also building up, while some fish stocks in the Icelandic waters were being depleted. The budget deficit was turned into a surplus in 1996, not least because of the close cooperation between Davíð and
Friðrik SophussonFriðrik Sophusson , is an Icelandic politician and the current director of Icelandic state-run energy firm Landsvirkjun. He graduated from the University of Iceland in 1972, as a lawyer....
, the Minister of Finance, who had also been a prominent young
libertarianLibertarianism is a term adopted by a broad spectrum of political philosophies which advocate the maximization of individual liberty and the minimization or even abolition of the state...
. There was a surplus almost continuously since then, which has been used to reduce the public debt, and also to reform the pension system, which is now almost wholly self-supporting, while some small companies were privatised. Monetary constraints were imposed by making the
Central BankThe Central Bank of Iceland is the central bank or reserve bank of Iceland. It has served in this capacity since 1961, when it was created by an act of the Alþingi out of the central banking department of Landsbanki Íslands, which had had the sole right of note issuance since 1927 and had...
largely independent of any political pressures. It also helped the Davíð Oddsson government that there was a consensus between the labour unions and the employers that the rampant inflation of the 1980s, with huge, but largely meaningless, nominal wage increases, could not go on; therefore, in 1990, the unions and the employers had signed a “National Accord”, whereby wage increased would be moderate, and government would be assisted in bringing down inflation. From 1991, inflation in Iceland was on a level with the neighbouring countries.
Alliance with the Progressive Party (1995–1999)
In 1994, the Social Democratic Party split, and as a result they suffered a huge loss in the 1995 parliamentary elections. While in theory the coalition government maintained its majority, it only consisted of one seat. Davíð Oddsson therefore decided to form a coalition with the
Progressive PartyThe party had been in a government coalition partner to the conservative Independence Party in the period 1995-2007. From 1995 to 2004, it participated in the coalition as the junior partner under the premiership of Independence Party leader Davíð Oddsson, but the two parties agreed after the 2003...
. The leader of the Progressive Party,
Halldór ÁsgrímssonHalldór Ásgrímsson is an Icelandic politician, formerly Prime Minister of Iceland from 2004 to 2006 and leader of the Progressive Party from 1994 to 2006.-Education and early life:...
, became Minister of Foreign Affairs. In the new government, privatisation was continued on a much greater scale than before: a big and important chain of fish processing plants was sold; part-public or public investment funds were merged and sold as a private investment bank; the two commercial banks under government control were sold in a few stages; The two coalition parties accepted the loud demand by many people that a charge would be imposed on the holders of fishing quotas.
Davíð’s two governments were staunch allies of the
United StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
and strongly in support of
NATOThe North Atlantic Treaty Organization ); ), also called "the Atlantic Alliance", is an intergovernmental military alliance based on the North Atlantic Treaty which was signed on April 4, 1949...
, of which Iceland is a founding member. He firmly supported the actions undertaken by the U.S. and its allies in
AfghanistanThe Islamic Republic of Afghanistan is a landlocked country in south central Asia. It is variously described as being located within Central Asia, South Asia, or the Middle East...
and
IraqIraq , officially the Republic of Iraq , also known as Mesopotamia, is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert.Iraq shares borders with Jordan to the west, Syria...
, taking much criticism from the Icelandic Left. Since the fall of the Soviet Union, there has been some uncertainty about whether the United States defence force could or should remain in Iceland, having been invited there in 1951, at the height of the
Cold WarThe Cold War was the continuing state of political conflict, military tension, and economic competition existing after World War II , primarily between the USSR and its satellite states, and the powers of the Western world, including the United States...
. Davíð has not been enthusiastic about joining the
European UnionThe European Union is an economic and political union of 27 Member States, located primarily in Europe. Committed to regional integration, the EU was established by the Treaty of Maastricht on 1 November 1993 upon the foundations of the pre-existing European Economic Community...
.
The latter Davíð Oddsson government (1995-2004) embarked on a course of tax cuts. It cut the corporate income tax to 18%; it abolished the net wealth tax; it lowered the personal income tax and inheritance tax. This combination of opening up of the economy, fiscal and monetary stabilisation created an entrepreneurial climate in Iceland that spurred record economic growth in the country, with the real average income of individual households increasing by more than 17%.
Alliance with Progressive Party (1999–2004)
As a young man, Davíð Oddsson authored or co-authored several plays for the stage and for television. During his days as political leader, he pursued his literary interests as well, and in 1997, he published a collection of short stories,
Nokkrir góðir dagar án Guðnýjar, which became a best-seller in Iceland. Davíð celebrated his 50th birthday at a huge reception in
PerlanPerlan is a landmark building in Reykjavík, the capital of Iceland. It is 25.7 metres high. It was originally designed by Ingimundur Sveinsson. Perlan is situated on the hill Öskjuhlíð where there had been hot water storage tanks for decades. In 1991 the tanks were updated and a hemispherical...
, paid for by the
Independence PartyThe Independence Party is a centre-right political party in Iceland. It was formed in 1929 through a merger of the Conservative Party and the Liberal Party. The party supports Icelandic membership of NATO but is opposed to the idea of joining the European Union. The party's position on EU...
, and his friends published a
festschriftIn academia, a Festschrift or Festschrifts, is a book honoring a respected person, especially an academic, and presented during his or her lifetime. The term, borrowed from German, could be translated as celebration publication or celebratory writing...
of more than 500 pages where many Icelandic writers, scholars and politicians contributed papers. In the 1999 parliamentary elections, Davíð’s
Independence PartyThe Independence Party is a centre-right political party in Iceland. It was formed in 1929 through a merger of the Conservative Party and the Liberal Party. The party supports Icelandic membership of NATO but is opposed to the idea of joining the European Union. The party's position on EU...
retained strong support, despite the attempt by a former government minister of the Party,
Sverrir HermannssonSverrir Hermannsson is a former MP of the Independence Party who later formed the Liberal Party. He was Speaker of the Lower House of the Althing 1979–1983....
, to establish a splinter party: the minister had been made director of the National Bank of Iceland and had had to resign because of financial irregularities. In 2002, Davíð published another collection of short stories,
Stolið frá höfundi stafrófsins, which was also well-received.
However, in that same year, 2002, there began a controversy in Iceland about the company Baugur, owned by the entrepreneurs
Jóhannes JónssonJóhannes Jónsson is an Icelandic businessman and one of the founders and current owners of the investment company Baugur Group. He founded the Bónus stores in Iceland in 1989 with his son and president of Baugur Group, Jón Ásgeir Jóhannesson....
and his son,
Jón Ásgeir JóhannessonJón Ásgeir Jóhannesson is the CEO of Baugur Group.He graduated from The Commercial College of Iceland in the year 1989. The same year he, along with his father, Jóhannes Jónsson, established the retail chain Bónus, and became its Managing Director...
. A giant on the Icelandic scene, Baugur controlled the majority of the retailing business in Iceland: in parliament, the then-leader of the social democratic party
Össur SkarphéðinssonÖssur Skarphéðinsson is an Icelandic politician who has been Minister for Foreign Affairs since February 2009.Össur matriculated from the Reykjavík Grammar School in 1973, and gained a BS in Biology from the University of Iceland in 1979, and a doctorate in physiology from the University of East...
called for a closer supervision on possible monopoly pricing, specifically mentioning this company. Davíð concurred. In the summer of 2002, the Icelandic police raided the headquarters of Baugur, after a disgruntled former employee in their American operations had produced what he claimed was evidence of financial irregularities. The two main owners of Baugur did not take kindly to this and accused Davíð of orchestrating a campaign against them. They bought a newspaper,
FréttablaðiðFréttablaðið is the Icelandic newspaper with the largest circulation. Fréttablaðið is in Icelandic and distributed to homes across the country daily, free of charge.It is published by the media group 365 prentmiðlar....
, which is sent free of charge into every household in Iceland. The paper opposed Davíð in the bitterly fought 2003 parliamentary election when there was talk of corruption, bribery and abuse of the police. In a speech on February 9 2003, the main spokesperson of the Social Democratic Alliance,
Ingibjörg Sólrún GísladóttirIngibjörg Sólrún Gísladóttir was an Icelandic politician from the Social Democratic Alliance, formerly Minister for Foreign Affairs 2007-2009 and leader of the Alliance 2005-2009.-Education:...
, suggested that Davíð might be responsible for the tax investigation of businessman
Jón ÓlafssonJón Ólafsson is the name of:*Jón Ólafsson from Grunnavík*Jón Ólafsson...
, then owner of a private television station, and also for the police raid on Baugur. Paraphrasing Shakespeare, she asked: "Are you a friend of the Prime Minister or are you not; that is the question".
Foreign Minister (2004–2005)
After the 2003 elections, Davíð Oddsson and the leader of his coalition party,
Halldór ÁsgrímssonHalldór Ásgrímsson is an Icelandic politician, formerly Prime Minister of Iceland from 2004 to 2006 and leader of the Progressive Party from 1994 to 2006.-Education and early life:...
, Minister of Foreign Affairs, agreed that Davíð should remain Prime Minister until 15 September 2004, at which time Halldór would become Prime Minister, and that the
Independence PartyIndependence Party can refer to various political parties past and present throughout the world, such as:*Independence Party *Estonian Independence Party*Independence Party *Independence Party...
would, in exchange for relinquishing the Prime Minister’s post, gain an additional ministry in the government from its partner. In 2004 the Davíð Oddsson government became embroiled in controversy, as Davíð introduced a bill which would have made it impossible for large private companies to own more than 15% in any one media, and under which newspapers and television stations could not be owned by the same companies. Davíð argued that this was to prevent concentration of the media in the hands a few people, and to enable the media to remain independent and critical not only towards politicians, but also towards financial moguls. His critics maintained, however, that the proposal was directly aimed at Baugur which Davíð was, they said, obviously regarding as a political enemy. By then, Baugur had bought another newspaper, the television station from
Jón ÓlafssonJón Ólafsson is the name of:*Jón Ólafsson from Grunnavík*Jón Ólafsson...
and a few radio stations, and controlled more than half of the media market. In a much-softened version, parliament passed the media bill proposed by the government. But then, for the first time in the history of the Icelandic Republic, in the summer of 2004, the president,
Ólafur Ragnar GrímssonÓlafur Ragnar Grímsson is the fifth and current President of Iceland. He has served as President since 1996: he was re-elected unopposed in 2000, he was re-elected for a third term in 2004, and was re-elected unopposed for a fourth term in 2008...
, refused to sign the bill into law. Davíð criticized this, pointing out that the director of the television station formerly owned by
Jón ÓlafssonJón Ólafsson is the name of:*Jón Ólafsson from Grunnavík*Jón Ólafsson...
and recently bought by Baugur, Sigurður G. Guðjónsson, had been Ólafur Ragnar Grímsson’s campaign manager in his first presidential campaign, and that Ólafur’s daughter was employed by Baugur. However, Baugur enjoys considerable goodwill in Iceland because their shops offer lower prices than are to be found elsewhere, while their owners are seen as an embodiment of an Icelandic dream of rags-to-riches; many also agreed that the media bill seemed to be a part of a political duel rather than an attempt to make general law. The conclusion of a long struggle was that Davíð Oddsson withdrew the bill instead of holding a national referendum on it, as required by the Icelandic constitution if the president refuses to sign a bill into law.
During his almost 14 years as Prime Minister, Davíð became acquainted with, or friend of, many Western leaders, including
Bill ClintonWilliam Jefferson "Bill" Clinton was the 42nd President of the United States from 1993 to 2001. He was the third-youngest president; only Theodore Roosevelt and John F. Kennedy were younger when entering office...
,
George W. BushGeorge Walker Bush was the 43rd President of the United States from 2001 to 2009 and the 46th Governor of Texas from 1995 to 2000....
,
Václav KlausVáclav Klaus is the second President of the Czech Republic and a former Prime Minister of the Czech Republic . An economist by trade, he is co-founder of the Civic Democratic Party, the major Czech right-wing party...
and
Silvio Berlusconiis an Italian politician, entrepreneur, real estate and insurance tycoon, bank and media proprietor, sports team owner and songwriter. He is the longest-serving Prime Minister of the Italian Republic , a position he has held on three separate occasions: from 1994 to 1995, from 2001 to 2006 and...
. He has occasionally attended the meetings of the
Bilderberg GroupThe Bilderberg Group, Bilderberg conference, or Bilderberg Club is an unofficial, annual, invitation-only conference of around 130 guests, most of whom are persons of great influence in the fields of politics, business, banking, and media....
, and he has read a paper to the
Mont Pelerin SocietyThe Mont Pelerin Society is an international organization composed of economists, intellectuals, business leaders, and others who favour classical liberalism; the society advocates free market economic policies and the political values of an open society. The Mont Pelerin Society was created on 10...
. But he only served as Minister of Foreign Affairs for one year. In the autumn of 2005, Davíð announced that he would leave politics. He said that he felt that the time had come for a new generation to take over. His close ally over many years, Geir H. Haarde, replaced him, both as leader of the
Independence PartyThe Independence Party is a centre-right political party in Iceland. It was formed in 1929 through a merger of the Conservative Party and the Liberal Party. The party supports Icelandic membership of NATO but is opposed to the idea of joining the European Union. The party's position on EU...
and Minister of Foreign Affairs. A probable contribution to this decision was a short, but dramatic, bout with cancer, soon after the crisis over the failure of the media bill. He was, however, fully cured.
Central Bank Governor (2005–2009)
In October 2005, Davíð was appointed the Governor of the
Central Bank of IcelandThe Central Bank of Iceland is the central bank or reserve bank of Iceland. It has served in this capacity since 1961, when it was created by an act of the Alþingi out of the central banking department of Landsbanki Íslands, which had had the sole right of note issuance since 1927 and had...
. Following the collapse of the Icelandic banking system in the autumn of 2008, the nation was forced to ask for financial help from the
International Monetary FundThe International Monetary Fund is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rates and the balance of payments...
and friendly nations. Some blame the collapse of the system on external factors, mainly a structural flaw in the EEA Agreement, and the ruthlessness of the British government which put Icelandic financial institutions on the list of terrorist organisations. Others blame it on the economic policies pursued by the Independence Party under Davíð’s leadership, such as market liberalisation and privatisation. Consequently, there were public calls for Davíð’s dismissal. Following protests outside the Central Bank, the new Prime Minister
Jóhanna SigurðardóttirJóhanna Sigurðardóttir is an Icelandic politician and the current Prime Minister of Iceland. She had previously been Iceland's Minister of Social Affairs and Social Security from 1987–1994 and 2007–2009. She has been a member of the Althing for Reykjavík constituencies since 1978, winning...
requested that Davíð and his two fellow governors resign. He refused this request. On February 26, 2009, following changes to the laws concerning the Central Bank, Davíð was ousted from the bank and replaced by Norwegian economist
Svein Harald ØygardSvein Harald Øygard is a Norwegian economist. He was head of the Central Bank of Iceland in 2009, succeeded Davíð Oddsson and was in office from February to August 2009....
.
In April 2009, Davíð stated that Iceland needs to investigate the “unusual and unconventional loans” given by the banks to senior politicians during the years before the crisis.
Editor of Morgunblaðið (2009-present)
On September 24, 2009, the new owners of
MorgunblaðiðMorgunblaðið is a newspaper published in Iceland, founded by Vilhjálmur Finsen & Olaf Björnsson. The first issue, only eight pages long, was published on November 2, 1913. Six years later, in 1919, the corporation Árvakur bought out the company...
announced that Davíð Oddsson and Haraldur Johannessen, former editor of business paper
Viðskiptablaðið, had been hired as editors of the paper. The decision was announced in the wake of much speculation and rumours about who would be the new editor after the dismissal of the previous editor, Ólafur Þ. Stephensen.
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