With Pirates on the Horizon, Iceland’s Government May Not Survive the Panama Papers

Iceland's Prime Minister Sigmundur David Gunnlaugsson at a press conference ahead of the Nordic and Baltic prime ministers meeting for the Nordic Council's 66th Session at the Rosenbad government office in Stockholm on Oct. 27, 2014. Jonathan Nackstrand/AFP/Getty Images

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As a result of the collapse, the country entered a recession. Inflation and unemployment skyrocketed. Peaceful protests known as the “pots and pans revolution” started on the streets of Reykjavik. A new political party, the Citizen’s Movement (later renamed The Movement), emerged from these protests and included Birgitta Jonsdottir, who would later co-found the Icelandic Pirate Party.

People gather to demonstrate against Iceland's Prime Minister Sigmundur David Gunnlaugsson, in Reykjavik, on April 4, 2016. Gunnlaugsson insisted Monday he would not resign after documents leaked in a media investigation allegedly link him to an offshore company that could represent a serious conflict of interest, according to information leaked from a Panamanian law firm at the center of an international tax evasion scheme. AP Photo/Brynjar Gunnarsson

The government collapsed in January 2009 and early elections were held. The Citizen’s Movement entered parliament and the Independence Party, which had been in power for 18 consecutive years, lost 9 of its 27 seats. The Social Democratic Alliance formed the first left-wing government in Iceland’s history as part of a coalition with the Left-Green Movement.

The new government applied to join the European Union, bankers were jailed, and most importantly, a Constitutional Assembly composed of Icelandic citizens was formed in 2011 to draft a new constitution.

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However, the left-wing government proved unpopular. It was defeated in referendums over the Icesave dispute and unemployment remained high by Iceland’s standards. The application for EU membership divided the population, and there were internal disputes between coalition partners.

The government lost the 2013 elections, and a right-wing coalition composed of the Progressive and Independence parties, led by Gunnlaugsson, was formed.

But this administration has taken a series of extremely unpopular decisions. It froze the constitutional reforms and EU accession talks, despite promising a referendum on the latter. In May 2015, thousands of protesters called for the government to resign and listed a series of 99 reasons including allegations of corruption.

The Panama Papers will exacerbate tensions between politicians and the population in Iceland.

Birgitta Jonsdottir of the Pirate Party. Piratska strana, CC BY-SA

The likely success of the Pirate Party in Iceland could inspire other Pirate Parties across Europe. So far, the electoral success of these groups has been limited to Iceland and, to a lesser extent, Sweden and Germany. They have tended to be seen as single-issue parties. Julia Reda is currently the only Pirate elected in the European Parliament.

However, should the people of Iceland begin a peaceful revolution, it could increase the visibility of other Pirate parties across Europe, and possibly lead to the emergence of a successful transnational political movement.

Benjamin Leruth is a research associate in politics and social policy at the University of Kent in the U.K. This article was originally published on The Conversation.