AGP Executive Report

Arctic Security: Iceland is among 10 Northern European members preparing to sign a pact on coordinating naval, air and ground forces to deter Russian threats across the North Atlantic, Arctic and Baltic. Prostitution Policy: Justice Minister Þorbjörg Sigríður Gunnlaugsdóttir’s bill would replace fines for buying sexual services with formal charges and public identification, aiming to deter demand. Climate Governance: A Reykjavik summit drew more than 250 people to debate geoengineering, a controversial field raising questions over oversight, funding and deployment. City Finances: Reykjavík forecasts an ISK 2.8 billion surplus next year.

Payments and Resilience: Iceland’s Central Bank is preparing a shared system for instant account-to-account payments, aiming to reduce reliance on Visa and Mastercard and give banks room to develop alternatives. Arctic Security: Iceland is among 10 NATO countries set to strengthen monitoring of Russian submarine activity near critical undersea infrastructure; a NATO commander also visited Iceland. Diplomacy: Iceland’s foreign minister visited China amid US pressure and separately accused the Arctic Circle’s chairman of echoing Moscow. Reykjavík Budget: The city forecasts an ISK 2.8 billion surplus next year. Whaling Debate: Iceland’s controversial whaling season has ended, renewing calls from politicians and activists for it to be the country’s last.

Payments Resilience: The Central Bank of Iceland is preparing a tender for shared infrastructure enabling instant account-to-account payments, aiming to reduce reliance on Visa and Mastercard while letting banks and payment providers compete on services. Maritime Security: The Coast Guard is installing four radar stations to improve coastal surveillance, track vessel traffic and monitor submarine cables; the EU is supporting the project. Reykjavík Budget: The city forecasts an ISK 2.8 billion surplus next year. Arctic Diplomacy: Iceland’s foreign minister visited China amid US pressure, and separately accused the Arctic Circle chairman of echoing Moscow. Whaling Debate: The season has ended, renewing calls from politicians and activists for it to be Iceland’s last. A NATO commander also visited Iceland as attention to High North security grows.

Security: Iceland’s Coast Guard is installing four radar stations to monitor coastal waters, submarine cables and vessel traffic, with EU support. NATO’s new Joint Force Command Norfolk chief also visited Iceland, highlighting its role in North Atlantic defence. Foreign Policy: Iceland’s foreign minister visited China amid US pressure, while separately accusing the Arctic Circle’s chairman of echoing Moscow. Reykjavík: The city forecasts a surplus of ISK 2.8 billion next year. Public Safety: Police suspect a previously convicted man, deported to Syria in September, of making recent bomb threats to Icelandic institutions; authorities say the threats are not credible. Whaling: Iceland’s controversial season has ended, renewing calls from politicians and activists for it to be the last.

Maritime Security: Iceland’s Coast Guard is installing four radar stations to track vessel traffic, monitor submarine cables and support maritime law enforcement. The EU is helping fund the system. NATO: The alliance’s new Joint Force Command Norfolk chief, General Nick Perry, visited Iceland and received briefings on the country’s defence role and Keflavík facilities. Domestic Security: Police suspect a man previously convicted of bomb threats in connection with recent threats to Icelandic institutions and businesses; authorities say the threats were not credible. Arctic Diplomacy: Iceland’s foreign minister visited China amid US pressure, while separately accusing the Arctic Circle’s chairman of echoing Moscow. Local Government: Reykjavík is forecasting a surplus of ISK 2.8 billion next year. Whaling: The controversial season has ended, with politicians and activists renewing calls for it to be Iceland’s last.

Security: Police suspect a man previously convicted of making bomb threats was behind recent threats to Keflavík Airport, Harpa and government ministries; officials say the threats are not credible. NATO’s new Joint Force Command Norfolk chief also visited Iceland, receiving briefings on the country’s defence role and Keflavík facilities. Foreign Policy: Iceland’s foreign minister visited China amid U.S. pressure, then accused the Arctic Circle’s chairman of echoing Moscow, underscoring tensions over Arctic diplomacy. City Finances: Reykjavík forecasts a surplus of ISK 2.8 billion next year. Whaling Policy: Iceland’s whaling season has ended, renewing calls from politicians and activists for it to be the country’s last. Tourism Rules: A proposed tourist fee may breach EEA rules, raising questions about how Iceland can fund visitor-related costs.

NATO and Arctic Security: The new commander of NATO’s Joint Force Command Norfolk visited Iceland, receiving briefings on the Keflavík security area and Iceland’s role in North Atlantic and Arctic defence. Domestic Security: Police suspect a man previously convicted of making bomb threats is behind recent threats to Icelandic institutions and businesses, but say the threats were not credible. Regional Defence: Six Nordic companies have proposed closer cooperation on defence procurement across Denmark, Finland, Iceland, Norway and Sweden; national governments would retain control over purchases. Whaling Debate: Iceland’s first whaling season since 2023 ended with 93 fin whales killed. Politicians and activists are urging the country to make it the last.

Foreign Policy: Iceland’s foreign minister visited China amid U.S. pressure, as Reykjavík faces a delicate balance in Arctic and international relations. Reykjavík Finances: The city forecasts a surplus of ISK 2.8 billion next year. Whaling: Iceland’s first hunt since 2023 ended with 93 fin whales caught; politicians and activists are urging the country to make it the last season. Residency Rules: New measures shorten stays for foreign graduates, while granting 12-month residency to one category of foreign nationals. Fisheries: Iceland is among the coastal states yet to agree how to divide mackerel, herring and blue whiting quotas, despite ongoing overfishing.

Arctic Diplomacy: Iceland’s foreign minister visited China amid US pressure and accused the Arctic Circle’s chairman of echoing Moscow, sharpening debate over the region’s strategic direction. Regional Security: Greenland approved a military deal with the US and Denmark, paving the way for an expanded American presence in the Arctic. Immigration: New rules cut foreign graduates’ post-study residence period to 12 months. Reykjavík Budget: The capital forecasts a surplus of ISK 2.8 billion next year. Tourism Policy: A proposed fee for foreign visitors to major natural sites may breach EEA rules if it discriminates against non-Icelanders.

Tourism and EEA Rules: A legal opinion commissioned by four municipalities warns that a proposed fee for foreign visitors to Gullfoss, Geysir and Þingvellir could breach EEA rules. To avoid discrimination, the charge may have to apply to Icelanders too. Foreign Graduates: New rules allow doctoral graduates from Icelandic universities to renew specialist residence permits for up to 12 months while seeking work in their field, without a work permit. Reykjavík Budget: The city forecasts a surplus of ISK 2.8 billion next year. Diplomacy: Foreign Minister Þorgerður Katrín Gunnarsdóttir visited China for talks on trade, energy and Arctic cooperation, while separately accusing the Arctic Circle chairman of echoing Moscow. Public Education: The government has bought the Brúnastaðir stables and riding arena, securing facilities used by Hólar’s equine studies students.

Public Investment: Iceland’s government has bought the Brúnastaðir stables and indoor riding arena at Hólar, securing facilities used to train equine studies students and giving the university room to develop the program. Immigration Rules: Foreign graduates now have up to 18 months to seek work in Iceland, down from three years; doctoral graduates seeking specialist work permits face a 12-month limit. Arctic Security: Greenland’s parliament approved a defense agreement with the United States and Denmark that would expand the U.S. military presence; Denmark’s parliament must still vote on the deal. Diplomacy: Iceland’s foreign minister visited China as Washington pressures Reykjavík over closer ties, while Iceland has also accused the Arctic Circle chairman of echoing Moscow. Reykjavík Budget: The city forecasts an ISK 2.8 billion surplus next year.

Wildlife Trafficking: Ecuadorian authorities seized 32 live Galápagos marine iguanas bound for Iceland; 24 survived and were returned to the islands. Scientists are urging stronger action against trafficking. Foreign Policy: Foreign Minister Þorgerður Katrín Gunnarsdóttir’s visit to China included talks on trade, geothermal energy, the green transition and Arctic cooperation, as Iceland marks 55 years of diplomatic ties with Beijing. Reykjavík Budget: The city projects a 2.8-billion-krona surplus in core operations next year, after forecasting a 6.6-billion-krona deficit this year; its plan includes cutting 130 full-time positions. Arctic Security: Gunnarsdóttir criticized former president Ólafur Ragnar Grímsson for echoing Moscow’s criticism of NATO activity in the Arctic, saying foreign officials had raised his posts with her. Russia Sanctions: Iceland joined an EU decision sanctioning 1,569 people and companies linked to Russia’s military industry.

Arctic Security: Greenland’s parliament unanimously approved a pact allowing two additional US military bases and the proposed Golden Dome system, though Denmark’s parliament must still sign off. Iceland’s foreign minister, meanwhile, criticized former president Ólafur Ragnar Grímsson for endorsing Russian criticism of NATO’s Arctic role. Iceland-China Ties: Þorgerður Katrín Gunnarsdóttir’s visit to China included talks on expanding cooperation in trade, geothermal energy, the green transition and Arctic affairs, as Iceland faces growing strategic pressure in the region. Reykjavík Budget: The city projects a 2.8 billion króna surplus in core operations next year, after forecasting a 6.6 billion króna deficit this year. The plan includes cutting 130 full-time positions and reducing debt. Russia Sanctions: Iceland joined eight other European countries in aligning with a new EU sanctions package targeting 826 companies and 743 individuals linked to Russia’s military industry.

Arctic Security: Iceland has joined the advisory board of the U.S. Department of Defense’s Ted Stevens Center, giving Ambassador Sturla Sigurjónsson a role in shaping Arctic security cooperation. Climate Preparedness: Icelandic officials have war-gamed a possible collapse of the Atlantic circulation system, examining risks that could bring severe cold to northern Europe and wider disruption. China Ties: Foreign Minister Þorgerður Katrín Gunnarsdóttir held talks with China’s Wang Yi as the countries mark 55 years of diplomatic relations, with both sides signaling interest in closer trade, energy and Arctic cooperation. Trade Diplomacy: Iceland also took part in the India-EFTA Prosperity Summit, where officials reviewed investment plans and opportunities in sectors including energy, maritime transport and advanced manufacturing.

Arctic Security: Iceland has joined the advisory board of the U.S. Ted Stevens Center for Arctic Security Studies. Ambassador Sturla Sigurjónsson will represent Iceland, giving it a role in shaping regional security and defense cooperation. Climate Preparedness: Icelandic officials have war-gamed a possible collapse of the Atlantic Meridional Overturning Circulation, preparing for risks including severe cold and disruption to food and water supplies. Foreign Relations: Iceland and China are seeking closer cooperation on trade, energy and Arctic affairs, following talks between Foreign Minister Þorgerður Katrín Gunnarsdóttir and China’s foreign minister. Tourism and Investment: The Blue Lagoon’s operator plans to raise about $115 million in an IPO on the Reykjavík stock exchange to fund expansion.

Iceland-China Ties: Foreign ministers Þorgerður Katrín Gunnarsdóttir and Wang Yi held talks as Iceland and China marked 55 years of diplomatic relations, with closer cooperation in trade, energy and Arctic affairs on the agenda. Arctic Security: Moscow warned that NATO’s growing role in the region could weaken the Arctic Council, where Iceland is one of eight member states. Eurovision Stance: Iceland’s RÚV has signalled it is unlikely to join Eurovision 2027 if Israel competes, but has not made a final decision. Tourism Investment: Blue Lagoon operator plans to raise $115 million through a Reykjavík IPO to fund expansion.