Davíð Oddsson (pronounced ; born 17 January 1948) is an
Iceland
Iceland is a Nordic countries, Nordic island country between the Atlantic Ocean, North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge between North America and Europe. It is culturally and politically linked with Europe and is the regi ...
ic politician, and the longest-serving
prime minister of Iceland
The prime minister of Iceland () is head of government of the Republic of Iceland. The prime minister is appointed formally by the president of Iceland, president and exercises executive authority along with the Cabinet of Iceland, cabinet subje ...
, in office from 1991 to 2004. From 2004 to 2005 he served as
foreign minister
In many countries, the ministry of foreign affairs (abbreviated as MFA or MOFA) is the highest government department exclusively or primarily responsible for the state's foreign policy and relations, diplomacy, bilateral, and multilateral r ...
and as the chairman for the
Independence Party from 1991 to 2005. Previously, he was
Mayor of Reykjavík from 1982 to 1991, and chaired the board of governors of the
Central Bank of Iceland
The Central Bank of Iceland (, ) is the central bank or reserve bank of Iceland. It is owned by the Icelandic government, and is administered by a governor and a seven-member supervisory board, elected by the country's parliament following ea ...
from 2005 to 2009. The
2008–2011 Icelandic financial crisis
The Icelandic financial crisis was a major financial crisis, economic and political event in Iceland between 2008 and 2010. It involved the default (finance), default of all three of the country's major privately owned commercial banks in late 2 ...
led to vocal demands for his resignation, both from members of the Icelandic public and from the new Icelandic Prime Minister
Jóhanna Sigurðardóttir
Jóhanna Sigurðardóttir (; born 4 October 1942) is an Icelandic politician, who served as prime minister of Iceland from 2009 to 2013.
Elected as an MP from 1978 to 2013, she was appointed as Iceland's Minister of Social Affairs and Social ...
, which resulted in his being replaced as head of the Central Bank in March 2009. In September 2009 he was hired as the editor of ''
Morgunblaðið
''Morgunblaðið'' (, ''The Morning Paper'') is an Icelandic daily newspaper. ''Morgunblaðið''s website, mbl.is, is the most popular website in Iceland. It is currently the country's only daily printed newspaper and the newspaper of record.
Hi ...
'', one of Iceland's largest newspapers, a decision that caused nationwide controversy and was followed by resignations and widespread terminated subscriptions. He contested the election for
President of Iceland
The president of Iceland () is the head of state of Iceland. The incumbent is Halla Tómasdóttir, who won the 2024 Icelandic presidential election, 2024 presidential election.
The president is not involved in the running of the country, bu ...
on 25 June 2016 but lost to
Guðni Jóhannesson, coming in fourth place with 13.7% of the popular vote.
Davíð was one of the most popular and successful politicians in Icelandic history but was also highly controversial for his support for the
Iraq War
The Iraq War (), also referred to as the Second Gulf War, was a prolonged conflict in Iraq lasting from 2003 to 2011. It began with 2003 invasion of Iraq, the invasion by a Multi-National Force – Iraq, United States-led coalition, which ...
and for his part in the
2008 financial crisis
The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
.
''Time'' named Davíð as one of the 25 people the most to blame for the crisis worldwide.
Biography
Early years
Davíð Oddsson was born in
Reykjavík
Reykjavík is the Capital city, capital and largest city in Iceland. It is located in southwestern Iceland on the southern shore of Faxaflói, the Faxaflói Bay. With a latitude of 64°08′ N, the city is List of northernmost items, the worl ...
. His father was a doctor, and his mother a secretary. His parents were not married, and he was brought up in his maternal grandfather's home in
Selfoss 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
gymnasium Menntaskólinn í Reykjavík
Menntaskólinn í Reykjavík (MR; official name in English: Reykjavik College) is collegein Iceland. It is located in Reykjavík.
The school traces its origin to 1056, when a school was established in Skálholt, and it remains one of the oldest ...
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
Akureyri (, ) is a town in northern Iceland, the country's fifth most populous Municipalities of Iceland, municipality (under the official name of Akureyrarbær , 'town of Akureyri') and the largest outside the Capital Region (Iceland), Capital R ...
. The next six years, Davíð read law at the
University of Iceland
The University of Iceland ( ) is a public research university in Reykjavík, Iceland, and the country's oldest and largest institution of higher education. Founded in 1911, it has grown steadily from a small civil servants' school to a modern co ...
, working almost full-time as well. He was assistant to the director of a small theatre (now the
Borgarleikhúsið) for a while, and with two friends (
Þórarinn Eldjárn and
Hrafn Gunnlaugsson), he produced a popular radio comedy show for two years; he was for a while a political commentator at the newspaper ''
Morgunblaðið
''Morgunblaðið'' (, ''The Morning Paper'') is an Icelandic daily newspaper. ''Morgunblaðið''s website, mbl.is, is the most popular website in Iceland. It is currently the country's only daily printed newspaper and the newspaper of record.
Hi ...
'', and the director of publication of
Almenna bókafélagið, a conservative publishing house. He had been elected to the Municipal Council in
Reykjavík
Reykjavík is the Capital city, capital and largest city in Iceland. It is located in southwestern Iceland on the southern shore of Faxaflói, the Faxaflói Bay. With a latitude of 64°08′ N, the city is List of northernmost items, the worl ...
in 1974, for the
Independence Party.
Mayor of Reykjavík (1982–1991)
Davíð Oddsson was a member of a group of young conservative-libertarians within the Independence Party who felt that the party should more strongly support attempts to extend
economic freedom in the heavily regulated Icelandic economy. The group included
Þorsteinn Pálsson,
Geir H. Haarde,
Jón Steinar Gunnlaugsson,
Kjartan Gunnarsson,
Magnús Gunnarsson,
Brynjólfur Bjarnason
Brynjólfur Bjarnason (26 May 1898 – 16 April 1989) was an Icelandic communist politician and philosopher.
Biography
Bjarnason was born in Hæli in Gnúpverjahreppur. In 1918 he started studying philosophy at the University of Copenhage ...
and
Hannes Hólmsteinn Gissurarson, and they published the magazine ''
Eimreiðin'' from 1972 to 1975; they also followed with interest what was happening in the United Kingdom under
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013), was a British stateswoman who served as Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party (UK), Leader of th ...
and in the United States under
Ronald Reagan
Ronald Wilson Reagan (February 6, 1911 – June 5, 2004) was an American politician and actor who served as the 40th president of the United States from 1981 to 1989. He was a member of the Republican Party (United States), Republican Party a ...
; they also read books and articles by and about
Milton Friedman
Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and ...
,
Friedrich Hayek
Friedrich August von Hayek (8 May 1899 – 23 March 1992) was an Austrian-born British academic and philosopher. He is known for his contributions to political economy, political philosophy and intellectual history. Hayek shared the 1974 Nobe ...
and
James M. Buchanan, who all visited Iceland in the early 1980s and whose messages of limited governments,
privatisation
Privatization (rendered privatisation in British English) can mean several different things, most commonly referring to moving something from the public sector into the private sector. It is also sometimes used as a synonym for deregulation w ...
, and liberalisation of the economy had a wide impact.
Davíð got a chance to further his ideals when, in 1982, the Independence Party, 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 Reykjavík, 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,
Grandi, which became one of the biggest fishing firms in Iceland. Incidentally, the director of Grandi,
Brynjólfur Bjarnason
Brynjólfur Bjarnason (26 May 1898 – 16 April 1989) was an Icelandic communist politician and philosopher.
Biography
Bjarnason was born in Hæli in Gnúpverjahreppur. In 1918 he started studying philosophy at the University of Copenhage ...
, 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 Hall by
The Pond in Reykjavík, and of
Perlan, a revolving restaurant over the old water tanks in
Öskjuhlíð. Despite his
libertarian
Libertarianism (from ; or from ) is a political philosophy that holds freedom, personal sovereignty, and liberty as primary values. Many libertarians believe that the concept of freedom is in accord with the Non-Aggression Principle, according ...
leanings, Davíð also supported the
Reykjavík City Theatre, 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,
Grafarvogur
Grafarvogur () is among the largest residential districts of Reykjavík, Iceland
Iceland is a Nordic countries, Nordic island country between the Atlantic Ocean, North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge between North Ameri ...
, was built and a new shopping area around the
Kringlan shopping mall. 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 Pálsson, was elected leader of the
Independence Party, and in 1989 Davíð was elected deputy leader or Vice-Chairman of the party. After Þorsteinn resigned as
prime minister
A prime minister or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. A prime minister is not the head of state, but r ...
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 pressure was put on Davíð to run against Þorsteinn, which he did in 1991, becoming leader of the party. Under Davíð's leadership, in 1991, the party regained most of the parliamentary support it had lost in 1987. In record time, Davíð formed a coalition government with the social democrats,
Alþýðuflokkurinn, whose leader,
Jón Baldvin Hannibalsson, became Minister of Foreign Affairs. Jón Baldvin and Davíð jointly decided that Iceland should become the first state to renew recognition of the sovereignty and independence of the three Baltic countries,
Estonia
Estonia, officially the Republic of Estonia, is a country in Northern Europe. It is bordered to the north by the Gulf of Finland across from Finland, to the west by the Baltic Sea across from Sweden, to the south by Latvia, and to the east by Ru ...
,
Latvia
Latvia, officially the Republic of Latvia, is a country in the Baltic region of Northern Europe. It is one of the three Baltic states, along with Estonia to the north and Lithuania to the south. It borders Russia to the east and Belarus to t ...
and
Lithuania
Lithuania, officially the Republic of Lithuania, is a country in the Baltic region of Europe. It is one of three Baltic states and lies on the eastern shore of the Baltic Sea, bordered by Latvia to the north, Belarus to the east and south, P ...
, prior to the collapse of the Soviet Union.
Davíð's government inherited a huge budget deficit and a number of unproductive investments: much money had been spent on fish farming for example, with little result. Inflationary pressures were also building, while some fish stocks in 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 Sophusson, the Minister of Finance, who had also been a prominent young
libertarian
Libertarianism (from ; or from ) is a political philosophy that holds freedom, personal sovereignty, and liberty as primary values. Many libertarians believe that the concept of freedom is in accord with the Non-Aggression Principle, according ...
. There has been a surplus almost continuously since then, which was used to reduce the public debt, and also to reform the pension system, which is now almost wholly self-supporting. Some small companies were privatised. Monetary constraints were imposed by making the
Central Bank
A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the mo ...
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, wage increases, could not go on; therefore, in 1990, the unions and the employers had signed a "National Accord", whereby wage increases would be moderate, and government would be assisted in bringing down inflation. From 1991, inflation in Iceland was on a level with 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. The coalition government maintained its majority, but only by one seat. Davíð Oddsson therefore decided to form a coalition with the
Progressive Party, whose leader,
Halldór Ásgrímsson
Halldór Ásgrímsson (pronounced ; 8 September 1947 – 18 May 2015) was an Icelandic politician, who served as prime minister of Iceland from 15 September 2004 to 15 June 2006 and was the leader of the Progressive Party from 1994 to 2006.
Ed ...
, became Minister of Foreign Affairs. In the new government, privatisation was continued on a much greater scale than before: a large and important chain of
fish processing plant
A fish factory, also known as a fish plant or fish processing facility, is a facility in which fish processing is performed. They are commonly located near bodies of water but can be located inland and on fishing vessels. The availability and va ...
s 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 demands from many people for a charge to be imposed on the holders of fishing quotas.
Davíð's two governments were staunch allies of the United States and strongly in support of
NATO
The North Atlantic Treaty Organization (NATO ; , OTAN), also called the North Atlantic Alliance, is an intergovernmental organization, intergovernmental Transnationalism, transnational military alliance of 32 Member states of NATO, member s ...
, of which Iceland is a founding member. He firmly supported the actions undertaken by the U.S. and its allies in
Afghanistan
Afghanistan, officially the Islamic Emirate of Afghanistan, is a landlocked country located at the crossroads of Central Asia and South Asia. It is bordered by Pakistan to the Durand Line, east and south, Iran to the Afghanistan–Iran borde ...
and
Iraq
Iraq, officially the Republic of Iraq, is a country in West Asia. It is bordered by Saudi Arabia to Iraq–Saudi Arabia border, the south, Turkey to Iraq–Turkey border, the north, Iran to Iran–Iraq border, the east, the Persian Gulf and ...
, 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 War
The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...
. Davíð has not been enthusiastic about joining the
European Union
The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
.
The latter Davíð Oddsson government (1995–2004) (under the influence of
Milton Friedman
Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and ...
's neoliberal ideas) 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%, but was also one of the causes of the
2008–2011 Icelandic financial crisis
The Icelandic financial crisis was a major financial crisis, economic and political event in Iceland between 2008 and 2010. It involved the default (finance), default of all three of the country's major privately owned commercial banks in late 2 ...
.
Alliance with Progressive Party (1999–2004)

As a young man, Davíð Oddsson authored or co-authored several stage and TV plays. During his days as political leader, he also pursued his literary interests, 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
Perlan, paid for by the
Independence Party, and his friends published a ''
Festschrift
In academia, a ''Festschrift'' (; plural, ''Festschriften'' ) is a book honoring a respected person, especially an academic, and presented during their lifetime. It generally takes the form of an edited volume, containing contributions from the h ...
'' of more than 500 pages to which many Icelandic writers, scholars and politicians contributed papers. In the 1999 parliamentary elections, Davíð's Independence Party retained strong support, despite an attempt by a former government minister of the party,
Sverrir Hermannsson
Sverrir Hermannsson (26 February 1930 – 12 March 2018) was an Icelandic politician, businessman, and banker.
Early life
Sverrir was born in the Svalbarði farm in Ögurvík, Ísafjarðardjúp, on 26 February 1930, to Hermann Hermannsson and ...
, to establish
a splinter party: the minister had been appointed 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
Baugur Group, owned by the entrepreneurs
Jóhannes Jónsson
Jóhannes Jónsson (31 August 1940 – 27 July 2013) was an Icelandic businessman and one of the founders of the investment company Baugur Group, which applied for bankruptcy protection in February 2009. His warm public personality and co-foundi ...
and his son,
Jón Ásgeir Jóhannesson. A giant on the Icelandic scene, Baugur controlled the majority of the retail business in Iceland: in parliament, the then leader of the Social Democratic party,
Össur Skarphéðinsson, called for closer supervision of possible monopoly pricing, specifically mentioning Baugur. Davíð concurred. In summer 2002, the Icelandic police raided the headquarters of Baugur, after a disgruntled former employee of 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, ''
Fréttablaðið
''Fréttablaðið'' () was a free Icelandic newspaper. It was distributed five days per week. At its peak, it was the most read newspaper in Iceland.
History and profile
''Fréttablaðið'' was established in 2001. It was originally owned primari ...
'', which is distributed free of charge to 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 9 February 2003, the main spokesperson of the
Social Democratic Alliance
The Social Democratic Alliance (, ) is a Social democracy, social democratic List of political parties in Iceland, political party in Iceland. The party is positioned on the Centre-left politics, centre-left of the political spectrum and their ...
,
Ingibjörg Sólrún Gísladóttir, suggested that Davíð might be responsible for the tax investigation of businessman
Jón Ólafsson, then owner of a private television station, and also for the police raid on Baugur. Paraphrasing
Shakespeare
William Shakespeare ( 23 April 1564 – 23 April 1616) was an English playwright, poet and actor. He is widely regarded as the greatest writer in the English language and the world's pre-eminent dramatist. He is often called England's natio ...
, she asked: "Are you a friend of the Prime Minister or are you not; that is the question".
In 2003, he led the liberalization of the banking laws in Iceland allowing less transparency which brought a huge amount of foreign money and high interest rates.
Support for the Iraq War
On 18 March 2003, Davíð and Foreign Minister
Halldór Ásgrímsson
Halldór Ásgrímsson (pronounced ; 8 September 1947 – 18 May 2015) was an Icelandic politician, who served as prime minister of Iceland from 15 September 2004 to 15 June 2006 and was the leader of the Progressive Party from 1994 to 2006.
Ed ...
declared their support of the ultimatum issued by the United States, the United Kingdom and Spain at the
Azores Summit, where the three countries announced their intention to
invade Iraq if the government of
Saddam Hussein
Saddam Hussein (28 April 1937 – 30 December 2006) was an Iraqi politician and revolutionary who served as the fifth president of Iraq from 1979 until Saddam Hussein statue destruction, his overthrow in 2003 during the 2003 invasion of Ira ...
did not step down. Due to Davíð and Halldór's declaration of support, Iceland was consequently put on the list of member states of the
Coalition of the Willing. Davíð and Halldór did not consult the Parliament's foreign affairs committee before making the announcement, arguing that support for the Iraq War could not be considered a major foreign policy decision.
Össur Skarphéðinsson, chairman of the
Social Democratic Alliance
The Social Democratic Alliance (, ) is a Social democracy, social democratic List of political parties in Iceland, political party in Iceland. The party is positioned on the Centre-left politics, centre-left of the political spectrum and their ...
, and
Steingrímur J. Sigfússon
Steingrímur Jóhann Sigfússon (born 4 August 1955) is an Icelandic politician. He has been a member of the Althing (Icelandic parliament) since 1983 and was the founding chairman of the Left-Green Movement (''Vinstri hreyfingin – grænt fra ...
, chairman of the
Left-Green Movement
The Left-Green Movement (, ), also known by its short-form name Vinstri græn (VG), is an eco-socialist political party in Iceland.
Since the 2024 Icelandic parliamentary election, the party has had no members in the Althing. The party chairper ...
, accused the government of breaking with parliamentary protocol by bypassing the foreign affairs committee while announcing its support for the war.
[
Davíð's government's support for the ]Iraq War
The Iraq War (), also referred to as the Second Gulf War, was a prolonged conflict in Iraq lasting from 2003 to 2011. It began with 2003 invasion of Iraq, the invasion by a Multi-National Force – Iraq, United States-led coalition, which ...
was largely unpopular among the Icelandic public. Shortly after the outbreak of the war, 76 percent of responders declared themselves opposed to the government's support for the war in an opinion poll published by ''Fréttablaðið
''Fréttablaðið'' () was a free Icelandic newspaper. It was distributed five days per week. At its peak, it was the most read newspaper in Iceland.
History and profile
''Fréttablaðið'' was established in 2001. It was originally owned primari ...
''. In an opinion poll published by Gallup in 2005, 84 percent of responders declared their opposition to Iceland being on the list of the Coalition of the Willing.
Foreign minister (2004–2005)
After the 2003 elections, Davíð Oddsson and the leader of his coalition partners, Halldór Ásgrímsson
Halldór Ásgrímsson (pronounced ; 8 September 1947 – 18 May 2015) was an Icelandic politician, who served as prime minister of Iceland from 15 September 2004 to 15 June 2006 and was the leader of the Progressive Party from 1994 to 2006.
Ed ...
, 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 Party would, in exchange for relinquishing the Prime Minister's post, gain an additional ministry in the government from its partner.
In 2004 Davíð's government became embroiled in controversy, when he introduced a bill which would have made it impossible for large private companies to own more than 15% of any one media company, and under which newspapers and television stations could not be owned by the same company. Davíð argued that this was to prevent concentration of the media in the hands of 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 Group which they claimed Davíð regarded as a political enemy. By then, Baugur had bought another newspaper, the television station from Jón Ólafsson and a few radio stations, and controlled more than half of the media market. The Alþingi passed a much-softened version of the media bill. But in summer 2004, for the first time in the history of the Icelandic Republic, the president, Ólafur Ragnar Grímsson
Ólafur Ragnar Grímsson (; born 14 May 1943) is an Icelandic politician who was the fifth president of Iceland, serving from 1996 to 2016. , refused to sign the bill into law. Davíð criticized this, pointing out that the director of the television station formerly owned by Jón Ólafsson and recently bought by Baugur, Sigurður G. Guðjónsson, had been Ólafur Ragnar's campaign manager in his first presidential campaign, and that Ólafur's daughter was employed by Baugur. However, Baugur enjoyed considerable goodwill in Iceland because their shops offered lower prices than competitors, while their owners, Jón Ásgeir Jóhannesson and Jóhannes Jónsson
Jóhannes Jónsson (31 August 1940 – 27 July 2013) was an Icelandic businessman and one of the founders of the investment company Baugur Group, which applied for bankruptcy protection in February 2009. His warm public personality and co-foundi ...
, were seen as an embodiment of an Icelandic dream of rags-to-riches. Many people 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 the long struggle was that Davíð Oddsson withdrew the bill instead of holding a national referendum on it, as required by the Icelandic constitution in the event that the president refuses to sign a bill into law.
During his 14 years as prime minister, Davíð became acquainted with, or a friend of, many Western leaders, including Bill Clinton
William Jefferson Clinton (né Blythe III; born August 19, 1946) is an American politician and lawyer who was the 42nd president of the United States from 1993 to 2001. A member of the Democratic Party (United States), Democratic Party, ...
and George W. Bush
George Walker Bush (born July 6, 1946) is an American politician and businessman who was the 43rd president of the United States from 2001 to 2009. A member of the Bush family and the Republican Party (United States), Republican Party, he i ...
of the United States, Václav Klaus
Václav Klaus (; born 19 June 1941) is a Czech economist and politician who served as the second president of the Czech Republic from 2003 to 2013. From July 1992 until the dissolution of Czechoslovakia in January 1993, he served as the second ...
of Czechoslovakia and Silvio Berlusconi
Silvio Berlusconi ( ; ; 29 September 193612 June 2023) was an Italian Media proprietor, media tycoon and politician who served as the prime minister of Italy in three governments from 1994 to 1995, 2001 to 2006 and 2008 to 2011. He was a mem ...
of Italy. He has occasionally attended the meetings of the Bilderberg Group
The Bilderberg Meeting (also known as the "Bilderberg Group", "Bilderberg Conference" or "Bilderberg Club") is an annual off-the-record forum established in 1954 to foster dialogue between Europe and North America. The group's agenda, originally ...
, and has read a paper to the Mont Pelerin Society
The Mont Pelerin Society (MPS), founded in 1947, is an international academic society of Economist, economists, Political philosophy, political philosophers, and other Intelligentsia, intellectuals who share a classical liberal outlook. It is hea ...
. But he served as Minister of Foreign Affairs for only one year. In autumn 2005, Davíð announced that he would leave politics, saying that he felt the time had come for a new generation to take over. His close ally over many years, Geir Haarde
Geir Hilmar Haarde (; born 8 April 1951) is an Icelandic politician who served as prime minister of Iceland from 15 June 2006 to 1 February 2009, and as president of the Nordic Council in 1995. Geir was chairman of the Icelandic Independence Par ...
, replaced him, as both leader of the Independence Party and Minister of Foreign Affairs. A probable contribution to this decision was a short, but dramatic, bout of cancer, soon after the crisis over the failure of the media bill.
Central Bank Governor (2005–2009)
In October 2005, Davíð was appointed the Governor of the Central Bank of Iceland
The Central Bank of Iceland (, ) is the central bank or reserve bank of Iceland. It is owned by the Icelandic government, and is administered by a governor and a seven-member supervisory board, elected by the country's parliament following ea ...
, despite not having any formal education in economics. During the 2008–2011 Icelandic financial crisis
The Icelandic financial crisis was a major financial crisis, economic and political event in Iceland between 2008 and 2010. It involved the default (finance), default of all three of the country's major privately owned commercial banks in late 2 ...
, Iceland was forced to ask for financial help from the International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of las ...
and friendly nations. Some blamed the collapse on the policies pursued by the Independence Party under Davíð's leadership, such as deregulation, market liberalisation and privatisation which led to investigations into the collapse and a trial. Consequently, there were public calls for Davíð's dismissal. Following protests outside the Central Bank, the new Prime Minister Jóhanna Sigurðardóttir
Jóhanna Sigurðardóttir (; born 4 October 1942) is an Icelandic politician, who served as prime minister of Iceland from 2009 to 2013.
Elected as an MP from 1978 to 2013, she was appointed as Iceland's Minister of Social Affairs and Social ...
requested that Davíð and his two fellow governors resign. He refused this request. On 26 February 2009, following changes to the laws concerning the Central Bank, Davíð was ousted from the bank and replaced by Norwegian economist Svein Harald Øygard.
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 24 September 2009, the new owners of ''Morgunblaðið
''Morgunblaðið'' (, ''The Morning Paper'') is an Icelandic daily newspaper. ''Morgunblaðið''s website, mbl.is, is the most popular website in Iceland. It is currently the country's only daily printed newspaper and the newspaper of record.
Hi ...
'' announced that Davíð Oddsson and Haraldur Johannessen, former editor of the business-oriented newspaper ''Viðskiptablaðið
''Viðskiptablaðið'' (English: ''The Business Paper'') is an Iceland
Iceland is a Nordic countries, Nordic island country between the Atlantic Ocean, North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge between North America and E ...
'', 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. Since Davíð took over as editor-in-chief a third of ''Morgunblaðið'' subscribers have cancelled their subscriptions. In 2009, the paper lost 667 million ISK. In the report of the Icelandic parliament's Special Investigation Commission, published in April 2010, the appointment of Davíð Oddsson as editor-in-chief of ''Morgunblaðið'' and the firing of many experienced journalists from the newspaper is mentioned as an example of how the owners of media in Iceland engage in manipulation for political ends. "Their objective seems to be to run an opinion journalism and protect special interests rather than ensure a professional and fair reporting."
2016 Presidential Campaign
Davíð announced his bid to the Icelandic presidency on 8 May 2016 for the 2016 presidential election. After he announced his campaign, he shortly afterwards started to poll in as the second highest in the race. Davíð ended up finishing fourth in race with 13.7% of the popular vote. A lot of people have speculated that the reason for his bad performance in the election was because of people fully blaming him for the 2008–2011 Icelandic financial crisis
The Icelandic financial crisis was a major financial crisis, economic and political event in Iceland between 2008 and 2010. It involved the default (finance), default of all three of the country's major privately owned commercial banks in late 2 ...
. Another speculation for his bad performance was when he joked about the Iraq War
The Iraq War (), also referred to as the Second Gulf War, was a prolonged conflict in Iraq lasting from 2003 to 2011. It began with 2003 invasion of Iraq, the invasion by a Multi-National Force – Iraq, United States-led coalition, which ...
during his campaigning.
Political views
Environmental issues
Throughout his political career, Davíð has repeatedly engaged in various forms of climate change denial
Climate change denial (also global warming denial) is a form of science denial characterized by rejecting, refusing to acknowledge, disputing, or fighting the scientific consensus on climate change. Those promoting denial commonly use rhetor ...
and has criticized attempts to limit emissions of greenhouse gasses. Around the turn of the millennium, Davíð's government refused to make Iceland a party to the Kyoto Accords before extracting a concession that permitted the country to exclude what amounted to around 3.3 million tons of carbon dioxide
Carbon dioxide is a chemical compound with the chemical formula . It is made up of molecules that each have one carbon atom covalent bond, covalently double bonded to two oxygen atoms. It is found in a gas state at room temperature and at norma ...
from the country's obligations in the accords. In his 1997 new year's address, Davíð justified his stance by claiming it would be wrong to stoke people's fears on the basis of "sciences that rest on weak grounds". In a speech during the Independence Party's 2005 convention, Davíð reiterated his view that the Kyoto Accords were based on "very weak foundations" and that the public discourse about climate change tended to be based on "inscrutable emotionalism and, at worst, empty propaganda".
In televised debates during Davíð's 2016 candidacy for President of Iceland, he denied that he had doubted the scientific reality of climate change and noted that it was would not do to "deny the calculations and scientific tools". However, he reiterated his scepticism of ongoing attempts to combat climate change, stating that he believed them to be ineffectual without the full participation of countries like the United States, India and China.
During Davíð's tenure as editor-in-chief of ''Morgunblaðið'', the paper has continued to regularly publish editorials and opinion pieces denying the reality of climate change and criticizing efforts to combat it.
Support for Donald Trump
In 2018, Davíð said that he was an open supporter of the then-president of the United States, Donald Trump
Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who is the 47th president of the United States. A member of the Republican Party (United States), Republican Party, he served as the 45 ...
.
In January 2021 following the January 6 United States Capitol Attack
On January 6, 2021, the United States Capitol in Washington, D.C., was attacked by a mob of supporters of Donald Trump, President Donald Trump in an attempted self-coup,Multiple sources:
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, Davíð said that no president in the history of the United States had been more “''wrongfully bullied"'' than Donald Trump
Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who is the 47th president of the United States. A member of the Republican Party (United States), Republican Party, he served as the 45 ...
. He also said that Joe Biden
Joseph Robinette Biden Jr. (born November 20, 1942) is an American politician who was the 46th president of the United States from 2021 to 2025. A member of the Democratic Party (United States), Democratic Party, he served as the 47th vice p ...
would be the ''"weakest president in American history"''.
In February 2024, Davíð criticized the Democratic Party and sent his support for Trump in the Prosecution of Donald Trump in New York trial.
In popular culture
Davíð has been the subject of parody, comedy, and caricature since taking public office. From 1989 to 2014, he was parodied regularly on Spaugstofan and the yearly Áramótaskaupið by comedian Örn Árnason, from 1986 to 2012, including in the sketch ''Dabbi Kóngur'' in 2001. In 2009, Davíð was part of an unused sketch for the Áramótaskaupið where he played Örn Árnason playing himself.
See also
* List of Icelandic writers
References
External links
* May 2000 profile of Davíð Oddsson in the London ''Spectator'', by Kristján Guy Burgess
April 2001 profile of Davíð Oddsson in the Charlemagne column of ''The Economist''
* December 2008 article from the Economist that mentions Davíð Oddsso
January 2021 profile of Davíð Oddsson by Hannes Gissurarson in ''The Conservative''
January 2022 defence of Davíð Oddsson’s record by Hannes Gissurarson in ''The Conservative''
* Independent article on resignation of Geir Haarde, mentions that Davíð Oddsson is real target of Icelandic protes
* ttp://eng.forsaetisraduneyti.is/ministry/Privatisation/ Privatisation during the Davíð Oddsson governments
Article on Icelandic economic miracle
by H. H. Gissurarson in ''The Wall Street Journal
''The Wall Street Journal'' (''WSJ''), also referred to simply as the ''Journal,'' is an American newspaper based in New York City. The newspaper provides extensive coverage of news, especially business and finance. It operates on a subscriptio ...
'' 2004
Davíð Oddsson's address on the Icelandic economy
at the AEI in Washington DC 14 June 2004
Davíð Oddsson's paper on Iceland and the EU at Linacre College, Oxford, 27 April 2004
Summary of media coverage on Davíð Oddsson and Baugur in England
Article on the Special Investigation Commission's report charging Davíð Oddsson with gross negligence in the 2008 banking collapse
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1948 births
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Living people
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