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Premier Taylerov - Better Alone Than With Bad Company: Part 2
Better Alone Than With Bad Company: Part Two
Between the dissolution of the First Republic and the formation of the Second, the United States and NATO suspended elections and placed the islands of Iceland under a strict occupation. During this period, national affairs were managed by a coalition of American and Icelandic figures - predominantly led by the former President, Gunnar Thoroddsen - while the Socialist Alliance and other centre-left parties were officially prohibited by the newly re-written Icelandic Constitution. With the country pacified and most of the leading socialist politicians imprisoned outside of Iceland, a new democratic system was allowed to be introduced.

Presidents of the Second Republic of Iceland (1979-)

1979-1983: Gunnar Thoroddsen (Independent)
1983-1991: Óli Þorbjörn Guðbjartsson (Independent)
1991-1998: Steingrímur Hermannsson (Independent)
1998-2010: Ingi Björn Albertsson (Independent)
2010-2017: Friðrik Sophusson (National)


Prime Ministers of the Second Republic of Iceland (1979-)
The Restoration of Democracy and the Consolidation of the New Republic

1979-1991: Albert Guðmundsson (National/Independence)
1980: National majority, Independence Party in affiliation
1984: National majority, Independence Party in affiliation
1987: National majority, Independence Party in affiliation

The country had struggled to recover from the disasters of the late-1970s. Iceland had lost the trust and influence it had painstakingly developed with the Americans and the rest of NATO, and was now treated as a virtual puppet of the American military. The islands had been extensively militarized, and the National Party was formed in 1979 as a combination of members of all ideologies in a bid to try and recover from the humiliation. As such, 1980 saw the dramatic majority government of Guðmundsson working in alliance with the remainder of those who hoped to retain the Independence Party identity. The Americans signed off on the continuing existence of the latter given their support of Icelandic interventionism in the past. Securing a second victory in 1984, the National coalition was a strong supporter of the hawkish US foreign policy under President Reagan and under Guðmundsson Iceland created a standing army for the first time (although it remained small and largely symbolic). Until his death in 1983, President Thoroddsen also threw his support behind the new regime while some remained suspicious of his role during the SA government; nevertheless, he was enthusiastically supported in his final presidential election in 1980. Throughout his twelve-year government, never once losing his parliamentary support, Guðmundsson established himself as the defender of the new Icelandic state and whilst sometimes controversial did well to bring the country back into the respect of the western geopolitical establishment.

1991-1998: Sólveig Pétursdóttir (National/Independence)
1991: National majority, Independence Party in affiliation
1995: National majority, Independence Party in affiliation

The fall of the Berlin Wall brought the Cold War to an end, but it was clear that the United States had little interest in abandoning her status as the sole global superpower. In 1992 nuclear weapons were briefly deployed to Iceland, as the country played her role in the disarmament of the former Soviet stockpile. Sólveig Pétursdóttir, the new National Prime Minister and the first woman to hold the position, used her majority to implement Iceland as an offshore tax haven for those hoping to take part in what would become the New Millennium Boom. The new political stability of Iceland was clear, although going into the 1995 election there was substantial political liberalization. The country further improved her international reputation when in 1997 the airport at Keflavík hosted the emergency landing of Space Shuttle Excelsior, as well as the NEW NATO discussions that updated the alliance for the new century.

1998-2003: Friðrik Sophusson (National: NP/IP/CP)
1999: National-led majority coalition, Independence Party in affiliation

With the economy booming and the transgressions of the past largely forgotten amid national optimism, the 1999 election saw the Nationals retain their dominance but a number of smaller parties make headway against their political monopoly. Friðrik Sophusson, who had taken the premiership after a brief leadership contest in 1999, formed a government in good faith with the new Centre Party - leaving the equally-modern Democratic Party as the official opposition. It was the final election that the Independence Party (founded in 1907) took part in, and even so as an extension of the National apparatus.

2003-2007: Jón Hannibalsson (Democratic: DP/CP/IND)
2003: Democratic-led majority coalition
2007-2008: Ástþór Magnússon (Democratic: DP/CP/IND)

The Democratic Party had caused a stir in 2000 when they anointed Jón Hannibalsson - son of controversial Hannibal Valdimarsson - as their leader. However, under the terms of loyalty of the new Constitution it was clear that Hannibalsson was nowhere near as radical as his father, and merely campaigned under a centrist ticket against the National Party. A FBI investigation, conducted with the secret authorization of President Albertsson, reportedly passed Hannibalsson as fit for office in 2002 and after his subsequent election in 2003 the United States was quick to treat his new government with respect. The most radical measure that the Democratic government took was to nationalize the remainder of the complex Icelandic energy supply in 2006 in a bid to increase infrastructural efficiency and to work more closely with European contractors. However, in 2008 the European Stock Market took a dive, and whilst Iceland - being outside of the EEC - remained largely intact, inflation shot up and the nationwide reliance upon the American dollar became problematic. Hannibalsson, whilst personally popular, was pushed out in 2007 and Magnússon led a brief ministry until the 2008 election.

2008-2012: Davíð Oddsson (National: NP/CP/IND)
2008: National-led minority coalition
2010: National-led majority coalition

The financial problems of 2008 led to the return of the National Party, with the Centre Party returning in government for the fourth consecutive time. Oddsson was forced to take some major measures, nationalizing the Icelandic-American Bank in 2009 and cutting the limited Icelandic armed forces. The election of the isolationist American government in the same year led to a cooling of resources and a decline of American interests in Icelandic affairs. Keflavík was controversially brought into direct state control in 2011. However, it was clear that despite their best wishes the National government had struggled to bring the state finances into line, and into 2012 suffered their worst defeat of the Second Republic.

2012-2017: Ástþór Magnússon (Democratic: DP/IND/GRN)
2012: Democratic-led majority coalition

The current Icelandic government was the first to include a Green MP following their first entry to Parliament, and was the first since the absorption of the Independence Party to not include the Centre. Magnússon returned against the odds at the helm of a broad coalition, committed to spending to reduce the burden of the ongoing financial crisis on the Icelandic taxpayer. As of 2017, the party looks likely to further increase the majority in the upcoming elections.

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