Sigmundur Davíð Gunnlaugsson's power of attorney

New Year's Message from Prime Minister Sigmundur Davíð Gunnlaugsson, 31 December 2014.

Dear compatriots. Happy holidays.

At New Year, it is customary to celebrate, to hold festivities, and to enjoy time with those closest to us. Within the joy, there can also be mingled an ache and longing for times past or loved ones who have passed away. But while New Year's is both a time to reflect on the road behind us and to look forward, a time when both longing and anticipation come to bear, it is primarily a joyful celebration.

It is a joyful celebration because what has passed is finished and done, some of which we can be proud of, while other things we might wish to have done differently, but New Year's value first and foremost lies in how the past serves us in the future, whether as good memories or lessons and experiences that can be used to do things better.

The future, however, is uncertain. With all its uncertainty and challenges, it holds promises of new experiences and possibilities, arousing curiosity and desires; it is a prerequisite for progress and new opportunities.

It is a rich aspect of our culture, and indeed of human nature, to want to do better, reach farther, experience more. It is often said, and not without reason, that we are only as old as we feel.

We nurture the youth in our souls best by maintaining curiosity and the desire to experience new things. It doesn't have to be a trip to faraway lands or competition at the Olympics; the experience can also consist of reading a new book, watching a child grow, or seeing the places of our youth in a new light.

I remember hearing an interview with a man who had reached the age of 100. He said he woke up happy every morning because he found it remarkable and enjoyable to experience another day and see the sun rise once again.

That is why New Year's is an occasion for celebration throughout the world, even among those who do not enjoy the same comforts and security as we Icelanders. This New Year's, we should allow ourselves to rejoice. The opportunities awaiting us have never been as numerous and significant as they are now.

Icelanders have achieved remarkable progress in building a society over the past decades.

Some years have brought us further along than others, but overall, the story of the Icelandic republic is a unique tale of progress.

It is almost regardless of which international ranking lists are examined, assessing countries based on factors like equality, quality of life, security, healthcare, literacy, or longevity, Iceland is always among the top.

Representatives of this small nation have also accomplished incredible feats, for example, in the fields of arts, science, and academia. Even in the world's largest competitive sports, our representatives have achieved remarkable victories and delighted Icelandic hearts.

We should be proud of this achievement of we Icelanders and rejoice in it, not to elevate ourselves at the expense of others or to boast of what we have accomplished and imagine that it is a given. No, we should be proud of what we and previous generations have achieved, as it reminds us that we can do even better.

Thus, the fact that Iceland has the lowest rate of poverty in Europe does not mean that we should accept such a level; it tells us that poverty should not exist in Iceland.

Overall, the year 2014 has brought us forward significantly. Purchasing power has increased by more than 5% in one year, and there are few instances of such a thing, whether looking at Iceland's history or that of other countries. Value creation grew more this year than in most, if not all, other European countries.

Rarely has there been such a successful endeavor to establish economic stability, which is reflected, among other things, in low inflation; it has now measured below the Central Bank’s inflation target for nearly a year.

Unemployment is down to 3 percent, about 6,000 new full-year jobs have been created in a year and a half. Investment has significantly increased, and many diverse job-creating projects are underway.

At the same time, tens of billions are being returned to households in the country through tax and fee reductions and direct contributions, with particular attention given to improving the situation of low-income individuals and those with middle incomes.

Reductions in disability and pension benefits that were implemented five years ago have been completely eliminated, and contributions to social affairs have been significantly increased. In fact, they have never in the country’s history been as high as they will be in the new year.

This year, a unique measure was also implemented to rectify the situation for Icelandic households that bore significant burdens following the financial crisis. These actions and other solutions for those wishing to own homes or rent will have positive effects on society as a whole. They reduce payment burdens and increase disposable income, and the effects will not only be felt in 2015; they will be felt for decades to come.

The year 2014 greatly improved our situation, but now it is right to look forward and remember that the achievements of 2014 have every potential to become a solid foundation for continued progress in 2015.

The successes of the year we bid farewell to this evening did not happen by themselves. Many made significant efforts to make them a reality.

The better we stand together in seizing the opportunities of the new year, the greater the rewards will be.

But the prerequisite for achieving success in the future, as it has been to date, is that we believe in ourselves, trust in our country, and have faith in the ability of the Icelandic people to build and advance.

In the new year, the government will work towards the development of everything aimed at making life better for as many as possible. - Projects that enhance the community, promote better health, more security, better conditions, a more beautiful and healthier environment, and greater joy.

We want to work with everyone who wishes to lend a hand with us. We recognise that the greatest success is achieved through cooperation. Society is a collaborative project.

If consensus can be reached, among other things, on paying special attention to improving the conditions of people with lower or middle incomes, we can lay the groundwork for continued price stability and increases in purchasing power at the beginning of the new year.

Nothing is more valuable to us than the health of ourselves and our loved ones. That is why priority has been given to healthcare; in 2015, more funding will be allocated to Landspítali than ever before, alongside a sevenfold increase in the annual contribution for purchasing equipment for the hospital.

Efforts will continue to improve the healthcare system with the aim that healthcare in Iceland matches the best in the world.

Alongside this, a special public health initiative will be launched. The fact that each individual cares for their own health is the most effective and economical way to improve quality of life and strengthen the healthcare system.

Significantly increased funding for scientific research will, from 2015 onwards, greatly boost the substantial innovation activity that has recently been emerging in Iceland.

In the new year, work will commence on one of the largest advancement projects that can be embarked upon to strengthen the country’s infrastructure and settlements. Work will begin on a project to connect the whole country with fibre optics, every town, valley, and fjord, thereby linking the entire nation to a fast lane of information and communication.

Experience shows that our environment, like the weather, has a significant impact on the quality of life, on how we feel. All kinds of weather will continue in Iceland, but new laws regarding protected areas in settlement and other matters that will promote the beautification of towns, cities, and rural areas will bring Iceland into the group of countries that have achieved the greatest success in environmental beautification.

Thus, we can hopefully look back at the years 2013 and 2014 as the starting years of a significant building phase in Icelandic society, a true time of renaissance.

However, we must not forget that there is still a significant aspect of settling the financial crisis that Icelanders experienced fully, first among nations, more than six years ago.

There are still restrictions on the transfer of capital in the country. The biggest obstacle to lifting these restrictions is the so-called winding-up estates of the failed banks, which have already operated longer than is desirable. Initially, these estates enjoyed tax exemption despite being operated, for the most part, like businesses. But with taxation of the estates, the economic leeway that is an inevitable part of lifting these restrictions is finally beginning to form.

It is essential that these businesses contribute to society.

Abroad, for example in the United States, financial institutions that in most cases were kept afloat with access to governmental funding have been made to pay sky-high fines on top of loan repayments to compensate the communities for the damages caused by their actions.

Since the new government took office, there has been extensive work to assess the remnants of the financial crisis and how best to address them. This work has resulted in the government now being well-prepared to undertake significant actions early in the new year.

Whichever path is taken, the government will never waver from its duty to protect the interests of the public in the country. The Icelandic nation has already borne all the costs that can be expected of it due to the international financial crisis, costs that could easily have been even greater and perhaps unbearable if the Icelanders had not stood up for their rights.

In resolving this issue, it is crucial that we all stand together as Icelanders; thus, this major issue for the nation, like others, will be successfully concluded.

Dear compatriots.

The foundational pillars of Icelandic society are strong and provide a solid base. They are the result of tireless work and foresight from the generations that came before us. At New Year, it is fitting to remember this, to thank for it, and to honour it. It is also fitting to give special thanks to the tens of thousands of Icelanders who dedicate immeasurable efforts in voluntary work to improve life in this country and enhance the welfare and security of their fellow citizens.

The year 2014 often reminded us that although the country's nature is generous and beautiful, it can also be perilous. The selflessness and courage of Icelandic rescue teams proved invaluable this year as it has so many times before and reminded us that the rescue teams must be regarded as one of the greatest prides of this nation.

At these milestones, it is also appropriate to think warmly of those who are struggling with illnesses or other difficulties and of those who reach out to help them.

A new year of new opportunities is approaching. Let us allow ourselves to rejoice; by doing so, we demonstrate gratitude for the fortune that we as a nation have received, and by rejoicing, we also become better prepared to make life in Iceland even better, to help those in need both here at home and abroad, and to continue the great progress story of this wonderful land.

Let us respect the past, believe in the future, and celebrate the fact that a new year of new opportunities is beginning.

I wish you all joy and prosperity in the new year.