Program for Iceland

ICELAND

POLICY PLAN

DirectDemocracyS

Direct democracy — Communal property rights — Participatory governance system

Political, economic, financial and social plan

Detailed analysis of the current situation — Critique — Comprehensive solutions

Version 1.0 — 2026

www.directdemocracys.org

FOREWORD: WHY DOES ICELAND NEED A NEW POLITICAL VISION?

Iceland is one of the best countries in the world in terms of quality of life, equality and peaceful politics. But this is not enough. A good position compared to other countries does not mean that the system works adequately or fairly. Reality shows us multiple and serious paradoxes that require honest analysis and courageous solutions.

DirectDemocracyS presents this plan not as a recipe for a political party seeking power, but as a holistic and critical analysis based on logic, reason, research, reality, truth, consistency and mutual respect. We believe that every problem can be solved if we have the courage to analyze it honestly and the political will to implement the solutions.

This document is organized in three parts: first we identify the problems as they are, then we criticize the systems and decisions that have led to them, and finally we propose precise, realistic and compatible solutions with an impact that we can anticipate.

1. POLITICAL ANALYSIS: THE REALITY OF ICELANDIC DEMOCRACY

1.1 Current governance system: Strengths and weaknesses

Iceland is a parliamentary democracy with a long history of civil liberties and political freedoms. The Alþingi consists of 63 members of parliament who are elected for four-year terms by proportional representation. In the parliamentary elections in November 2024, the Social Democratic Party became the largest party with 15 seats, and Kristrún Frostadóttir became Prime Minister in a three-party government along with Viðreisn (11 seats) and the People's Party (10 seats).

PROBLEM #1 — Governments without a majority: Throughout Icelandic political history, no party has had an independent majority in the Althingi. This leads to weak coalition governments where the smallest parties can paralyze the influence of the largest parties and the public will.

1.1.1 Relationships between members of parliament and business interests

Freedom House, in its 2025 report, specifically highlights concerns about 'links between elected officials and business interests'. This is no coincidence: political party financing is still largely non-transparent and conflict of interest rules are very weak.

Example: The 2021 parliamentary elections led to legal proceedings in the European Court of Human Rights due to irregular parliamentary turnout in the Northwest Constituency, where Iceland was judged and had to pay compensation.
Example: Private media is in the hands of a few individuals, which poses a risk of limited diversity in the media environment and the possibility of interest-based manipulation in coverage.

1.1.2 Low participation at the local level

Despite high voter turnout in the National Assembly (80% in the 2024 presidential election), citizen participation in daily political life is very limited. Local governments have little financial autonomy and receive limited funding from the state, leading to uneven distribution of services across regions.

1.2 DirectDemocracyS's criticism of the current political system

MAIN CONCLUSION: The Icelandic system is too centralized, relies too heavily on vested interests, and provides the public with too little direct political power between elections.

The problem is not ideological — both leftists and rightists are part of the problem — but structural. When a system allows individuals and interest groups to pursue their own interests at the expense of the public, the problem is with the system itself, not with individuals.

1.3 Solutions and DDS proposals: Political reforms

1.3.1 Direct democratic participation

Establishment of a digital national program for direct democratic voting: On all issues of public interest, the nation will be able to call a referendum with the signatures of 15,000 voters (4% of the population).
Introduction of 'unbiased majority': No matter concerning fundamental rights will be approved without a 2/3 majority of the parliament AND confirmation by referendum.
A requirement for a monthly 'public meeting' where each MP is required to attend a meeting in their constituency and answer voters' questions with binding participation and registration.

1.3.2 Transparency and conflicts of interest

Law on a complete ban on private donations to political parties exceeding 500,000 ISK per year from individuals and 0 ISK from legal entities.
State funding of parties, tied to vote share, with a complete ban on advertising in private media.
A binding declaration of conflicts of interest for all members of parliament, ministers and officials that is publicly published and updated annually.
Ban on 'revolving door' jobs: No MP or minister can take a job with a company that operated in his/her field of work for 5 years after leaving office.

1.3.3 Decentralization: Strengthening local governments

Transfer of 35% of income tax revenue to municipalities, subject to conditions of equal service obligations.
Establishment of larger regional units (Counties) with their own parliament, budget and legislative initiatives.
Authorization of municipalities to issue regional bonds for infrastructure investments outside of state supervision.

2. ECONOMIC ANALYSIS: A STRONG BUT VULNERABLE ECONOMY

2.1 Current Economic Situation: Figures and Reality

Iceland is one of the richest OECD countries with a gross domestic product (GDP) per capita of €76,350 in 2023 — more than double the European Union average. Unemployment has been very low, and the OECD forecasts economic growth of 2.7% in 2025 and 3.0% in 2026.

Key figure sentence	2023	2024 (est.)	2025 (prediction)
GDP per capita (euro)	76,350	~74,000	~77,000
Economic growth (%)	+2.4%	+1.1%	+2.7%
Unemployment (%)	3.5%	3.8%	4.2%
Price level (KPI %)	~8%	~5.5%	~4%
Housing prices (change)	+18% (10 years)	+7% (annual)	+5% (forecast)
Tourist accommodation	~2.1 million	~2.3 million	~2.4 million

2.1.1 Main problem: Too much focus on tourism and aluminum production

PROBLEM #2 — The economy is too monotonous. Tourism, fish, and aluminum are three mega-pillars that account for more than 60% of export earnings. This creates an extremely vulnerable position to external shocks: a volcanic eruption, a global recession, climate change, or changes in travel behavior can thus wipe out large parts of the national output in just a few months.

The example of 2024 is a good one to illustrate this: Poor fishing and disruptions to tourism due to volcanic eruptions in Reykjanes led to a significant decline. This is a systemic problem that recurs every few years.

2.1.2 Prices and purchasing power

Iceland's inflation rate is among the highest in the world. Households are struggling with 5-6% inflation (2024-2025) which makes any long-term budget difficult. Wages increased following the 2024 collective agreements, but real wage growth is still negative when housing costs are taken into account, which are rising faster than anything else.

2.2 Criticism of economic policies

FUNDAMENTAL REVIEW: The OECD specifically points out that Icelandic fiscal policy has been 'too pro-cyclical' — the government spends more when things are going well and cuts when things are going badly. This is precisely the opposite of what is needed in economic policy and exacerbates fluctuations instead of smoothing them out.

2.2.1 Neglected productivity structure

Icelandic PISA results in basic skills (reading comprehension, mathematics) have declined rapidly — the largest decline among OECD countries in the past 20 years.
Investment in R&D is low compared to neighboring Nordic countries, although R&D tax deductions have improved the situation somewhat.
Little or nothing is being done to develop new and sustainable industries that can replace tourism.

2.3 DDS Solutions: An Economy That Serves All

2.3.1 Increasing and strengthening economic pillars

Develop 'Iceland as a leading green energy country': Utilize geothermal and hydropower to attract green energy data centers (carbon-negative data centers), green energy production for export, and training for foreign professionals in renewable energy. Goal: Increase green energy-related jobs by 8,000 by 2030.
Developing the 'blue economy' more broadly: The seafood industry needs to move from raw product exports to finished, high-value seafood. This alone could multiply the export value of fish without increasing fish catches.
Cultural and creative economy: Iceland has strong historical and cultural resources (history, music, theatre, design). Develop systematic support for creative industries that can create high-value jobs domestically.
Artificial Intelligence and the Digital Economy: The IMF and OECD specifically point out that Iceland is 'particularly well-positioned to benefit from the benefits of AI' due to its strong digital infrastructure. Develop a national AI policy with public participation in policymaking.

2.3.2 Economic policy reforms

Implement an 'expenditure rule' that ties the growth of public spending to long-term economic growth, not to cyclical economic fluctuations.
Establish a National Fund for Future Generations: 10% of income tax revenue and 15% of tourist taxes go to this fund. It is only used in times of crisis or for future investments with the approval of a referendum.
Revision of the tax system: Reduce income tax on the lowest income brackets (under ISK 4 million per year) and increase it on the highest brackets, along with a new tax on capital income above ISK 20 million.

The sector	Current status	DDS goals 2030	Action
Tourism	8.5% of GDP	5% of GDP (quality)	Controlled growth
Green energy	3% of GDP	10% of GDP	Investment
Culture/Creative	<1% of GDP	4% of GDP	Support
Fisheries (processed)	2% of GDP	6% of GDP	Domestic processing
Digital/artificial intelligence	2% of GDP	8% of GDP	Policy and development

3. HOUSING: THE MOST SERIOUS SOCIAL PROBLEM IN ICELAND

3.1 Analysis: The housing crisis in numbers

The HMS (Housing and Public Works Agency) report 'Rent Market Roadmap 2025' confirms what many Icelanders know from personal experience: house prices and rents have risen more in Iceland than in any other European country over the past decade. This is not a small difference — this is a huge difference that affects the quality of life of thousands of families.

PROBLEM #3 — Housing Crisis: Rents have increased by more than 120% in the last decade while real wages have only increased by ~35%. Rental subsidies have not been increased in line with 2025 prices. The OECD describes Iceland's rent protection system as 'less stringent than the US' — and this in a Nordic country!

3.1.1 Root causes

Lack of land supply from local governments due to political pressure from owner groups.
Investment properties: A large portion of Reykjavík housing is owned by companies and investors who have never considered living there.
The AirBnB problem: Thousands of apartments that were supposed to be residential have been converted into short-term rentals for tourists, reducing supply and driving up prices.
Loan-related purchasing power: Low interest rates 2010-2020 pushed prices up; high interest rates 2022-2024 blocked purchases but did not lower prices.
Neglect: No active housing policy was in place until the problem became intractable.

3.1.2 Consequences

Homelessness has increased by 168% in Reykjavík between 2009-2017 and the problem has continued.
Young people and people with low incomes are forced to live on the outskirts of the city, far from work and services.
Families with children are forced to live in cramped quarters.
Foreign workers — on whom the Icelandic economy is heavily dependent — are partly living in unacceptable conditions.

3.2 DDS Solutions: Housing Issues

BASIC PRINCIPLE OF DDS: Housing is a human right, not a financial instrument. The system must encourage housing to serve as a home, not as an investment vehicle.

3.2.1 Emergency surgeries (0-2 years)

Rent caps: Implement a rent cap that limits rent increases to 60% of the price level each year, with a three-year transition period in densely populated areas. This costs the state nothing — it is just a change in the law.
AirBnB restrictions: Individuals are only allowed to rent one apartment for short-term rentals and only during the summer (June-August). Companies and investors are not allowed to rent for short-term rentals without a special operating license with a higher tax rate.
Property tax on vacant apartments: Apartments that are vacant for more than 6 months a year pay a 3% tax on their fair value per year. This encourages owners to rent or sell.
Emergency Construction Plan: The state is providing 30 billion ISK in annual loans at 0% interest to municipalities to build a minimum of 500 rental apartments per year in the Reykjavík area.

3.2.2 Long-term solutions (3-10 years)

Establish a National Housing Fund: A fund that buys, builds and operates rental apartments at cost. Rent in this fund is limited to 25% of the tenant's income.
Regional planning: All land allocation by municipalities will be through an open tender process, with non-profits and cooperatives given priority over private companies in 40% of cases.
Tax changes: Eliminate tax incentives for investment purchases of residential real estate (5th property and above) and direct those incentives towards rental apartments and cooperatives.
Land value tax: Switch to a land value tax rather than a building value tax, which encourages dense and efficient land use.

Impact we can expect: If these measures are implemented together, a realistic goal is to reduce rental prices by 20-30% over a 5-year period and double the supply of rental apartments in 7 years.

4. FISCAL POLICY: CRISIS MEDICINE AGAINST SYSTEMIC EXPOSURE

4.1 Analysis: Financial vulnerabilities of the Icelandic economy

Iceland's financial history is an unforgettable lesson in how small nations can undergo systemic financial collapse. The 2008 financial crisis was among the three largest in relative terms that any country has ever experienced in modern history. Three major banks (Kaupthing, Landsbanki, Glitnir) collapsed in just a few days in October 2008 after having grown to 8-10 times the country's GDP.

PROBLEM #4 — Financial Vulnerability: Despite post-2008 reforms, the Icelandic banking system is still too concentrated (3 large banks control 90%+ of the market), króna fluctuations are partly dominant, and public finances still show a 'pro-cyclical' pattern according to OECD 2025.

4.1.1 The krona problem and the European Union debate

The new government in 2024 announced a promise of a referendum on EU membership by 2027 and recent polls show a majority in favour of membership. This is a very important development. DDS takes a position based on argument and reality:

EU membership would give access to the euro, which would destroy opportunities for independent monetary policy but could radically change price stability.
Membership would open the EEA market even further and increase investment opportunities.
However: Icelandic special rules on fisheries, land management and energy would need to be securely protected in the accession agreement.
DDS supports a referendum on this issue but demands that the nation be given full and fair information — not election campaign propaganda — before taking a position.

4.1.2 Monetary policy and the banking system

The Central Bank began lowering interest rates in October 2024 after keeping them very high to control inflation. The problem is that high interest rates have hit the housing market and weighed on households with indexed loans — which is a large proportion of Icelandic households.

PROBLEM #5 — Indexation of mortgages: A large portion of mortgages in Iceland are indexed, meaning that when prices rise, the balance of the loan also rises. This is especially burdensome during periods of inflation, creating a cycle that makes inflation even more difficult.

4.2 DDS Solutions: Financial Policy

4.2.1 Banking system and financial security

Force banks to keep 30% of loans as green investment projects according to a strict definition.
Implement a financial early warning system with a systematic risk assessment obligation for banks every six months, published publicly.
Force a quarter of the banks' downsized operations (commercial banks) from investment banking (legally separate entities).
Establish a government-sponsored savings system (IRA-like) where the government matches 50% of household savings up to ISK 500,000 per year — which encourages savings and reduces the need for debt.

4.2.2 Indexation and the monetary system

Gradually abolish indexation of new mortgages and switch to a fixed interest rate that is reviewed every 5 years. This requires a 10-year adjustment period.
Establish a nationalized housing bank that will issue loans at a fixed interest rate of 1.5% for first-time buyers, with a maximum of 70% of the loan limit.
Establish foreign exchange commitments for large foreign investments (over ISK 2 billion) that require approval from the Financial Supervisory Authority and ensure a number of domestic jobs.

5. TOURISM: FROM MASS TOURISM TO QUALITY TOURISM

5.1 Analysis: The role of victimhood

Iceland, with a population of ~370,000, receives 2.3-2.5 million tourists per year — more than 6 times its own population. This is among the highest rates in the world. Tourism accounted for 8.5% of GDP in 2023 and is a key pillar of domestic revenue generation.

A TWO-SIDED PARADOX: Tourism is both a savior and a threat. Without it, many home businesses and jobs would be threatened. With too much of it, nature is damaged, housing prices rise, Icelanders are driven from their own regions, and the nation is disrupted.

5.1.1 Environmental and infrastructure damage

Overcrowding in sacred areas like Geysir, Þingvellir, and Jökulsárlón is damaging fragile ecosystems that will take decades to recover.
Traffic congestion on highways, especially the Ring Road, is above design limits during peak season.
Litter and garbage in natural environments is a major problem as many tourists neglect guidelines.
Tourists entering the protected area off-road, sometimes in off-road vehicles (which is illegal and fraught with accidents).

5.1.2 Social consequences

A tourist's currency exchange rate has increased rental prices in Reykjavík significantly due to AirBnB changes.
The artistic and cultural nature of downtown Reykjavík is turning into a tourist village where natives no longer live.
The healthcare system is experiencing increased pressure from tourism without corresponding funding.

5.2 DDS Solutions: Sustainable Tourism That Serves Icelanders

5.2.1 Collection and distribution of revenue

Implement a 'Tourist Nature Conservation Fee' of ISK 3,000 per day or ISK 20,000 per week (cap), paid upon arrival and providing access to all protected areas. The revenue goes exclusively to nature conservation, facility development and local authorities in tourist areas.
Proportional tourist fees in the most popular areas (Þingvellir, Geysir, Jökulsárlón) which limits the number of daily visitors through a booking system.
Tourist fees for distribution: 30% for protection of the area where they are collected, 30% for other protected areas, 25% for municipalities in tourist areas, 15% for education related to nature conservation.

5.2.2 Tourism management

Set an annual maximum (quota) on tourist overnight stays at the overall level in the Reykjavík area. Maximum: 1.5 million overnight stays per year. Beyond that, the growth can be consumed in the countryside.
Promotional program that directs tourists to lesser-known areas: Westfjords, Snæfellsnes, Eastfjords, North Iceland. The goal is 40% distribution in 5 years.
Short-term charter categories: Cruise ship trips are limited to Reykjavík Port and Akureyri; other port introductions require a strict environmental assessment.
Minimum quality requirements: Tourists who appear to be in trouble (bad weather, spectacle, etc.) will be better warned and protected by a fleet of boats and taxis equipped with life-saving equipment.

5.2.3 Quality tourism

Develop policy incentives to transform the Icelandic tourism market from quantity tourism to quality tourism, where fewer tourists pay higher prices and receive a better experience:

Any form of subsidy to small, specialized tourism companies in the country that offer small groups and cultural or natural experiential tours.
The 'Icelandic Certification' certification system identifies companies that meet strict environmental, cultural and quality requirements.
Collaborating with experts in geology, natural history, and history to develop in-depth educational tours that are marketed at a higher price point.

6. SOCIAL POLICY: NEUTRAL EQUALITY AND A SOCIETY THAT SERVES ALL

6.1 Health systems: Strong but vulnerable

The Icelandic healthcare system is public and universal, with good results on many measures. But it is under increasing pressure: population growth, an aging population, foreign tourists who use healthcare services, and difficulties in attracting and retaining healthcare professionals to the country.

PROBLEM #6 — Health systems in crisis: The OECD notes that skills shortages are particularly acute in the health and technical sectors. Waiting lists have grown longer, creating an income disparity between those who can afford private services and those who cannot.

6.1.1 DDS health measures

Election-Lodu Keys: Confirm and strengthen that Iceland's healthcare system continues to be universal and free of charge at the point of service, with a block-ban on private financing coercion on patients.
Distribution of services: Establish 20 new health care pillars outside urban areas with local specialists (without centralization to Reykjavík) using telemedicine technology to utilize the expertise of the National Hospital.
Health Energy Fund: A special fund used to recall Icelandic healthcare professionals who have gone abroad and to finance specialist education for young people in the field of health sciences.
Tourist tax: Introduce a fee for tourists who receive healthcare services that they pay in part or in full, without affecting serious cases.

6.2 Education systems: Competing with a fast-paced reality

Iceland's PISA results have been rapidly declining — this is the most serious long-term education problem. Not because teachers are bad or students are lazy, but because a system designed in the last century is now incapable of preparing children for the 21st century.

6.2.1 DDS educational policy

Establish nationally standardized tests at grades 4, 7, and 10 to identify bottlenecks early and ensure equal conditions.
Focus a plan on basic skills (reading comprehension, logical mathematics, critical thinking) as a core curriculum area.
Bilingual education (Icelandic and English) in all schools from 1st grade, with a third language offered in 5th grade.
Icelandic education for immigrant children: Structured and specialized language instruction that ensures participation in society without putting pressure on children who already struggle with the language barrier.
Primary School Teacher Year: Increase the salaries of primary school teachers by 25% to make the job competitive at a level where teaching is highly culturally relevant — which it needs to be.

6.3 Immigration and integration

Iceland relies on foreign labor to drive its economy. Recent figures show that immigrants make up a large portion of the workforce in tourism, healthcare, construction, and service industries. This creates both opportunities and challenges.

PROBLEM #7 — Skills mismatch: The OECD specifically points to 'high skills mismatch among immigrants' and a lack of skills in technical and health sectors. Iceland is dependent on foreign experts but is failing to integrate them well into society.

6.3.1 DDS integration strategy

Systematic language instruction: Ensure access to free Icelandic instruction for all immigrants from day one. Currently there are waiting lists and limited opportunities.
Education-verification: A rapid system for evaluating and recognizing foreign educational certificates that are in line with Icelandic standards, without repeating all studies from scratch.
Regionalization: Incentives for immigrants to live outside Reykjavík with higher assistance fees and better access to housing in rural areas.
Third-country nationals: Simplified application processes for specialists in sectors where there is a high shortage, such as health and technical professions.

6.4 Sexual equality and LGBTQ+ rights

Iceland is a very progressive nation in this area and has a long history of gender equality, legalized marriages, and objective equal pay obligations. But more needs to be done:

Gender pay gaps still exist, especially in executive and managerial positions.
Mandatory equal pay certification extended to all companies with 25 or more employees (now 50+).
Strengthen the treatment of mental health-related illnesses as well as specific support for LGBTQ+ individuals who struggle with unequal support systems.

7. ENVIRONMENTAL AND ENERGY ISSUES: A GLOBAL LEADING LIGHT BUT NEGLECTED BY THE WORLD

7.1 Analysis: The Green Resources Paradox

Iceland has one of the highest rates of renewable energy in the world — nearly 100% of its electricity comes from hydropower and geothermal energy. This is an enormous privilege. But this position is now under threat due to growing demand that is rapidly outstripping production capacity.

PROBLEM #8 — Energy Shortages: OECD 2025 specifically points to 'increasingly frequent and rising electricity shortages'. This is a sudden reversal from long-term policy. Land-use disputes and cumbersome permitting processes are hindering new energy and transmission lines.

7.1.1 The Energy Problem

The electric car wave: The rapid electrification of vehicle management is increasing demand much faster than predicted.
Data centers: Large data center companies have been licensed for huge electricity consumption that hinders other uses.
E-fuel: Plans to produce domestic e-fuel for use in shipping fleets and aircraft will require even more energy.
Wind energy: Iceland is among the Nordic countries with the least wind energy development, partly due to political resistance and obstacles to integrating hydropower and geothermal energy.

7.2 DDS Solutions: Environmental Management

7.2.1 Energy structure

Establish a 'Fast-track Permitting Council' for politically approved energy projects: 6-month maximum permitting time instead of the current 5-10 year process.
National Wind Energy Plan: Define 10 wind energy areas in the country that will receive minimal opposition due to nature conservation and be connected to compatible hydropower storage units.
Data center energy cap: New data centers will only be permitted if they use 100% renewable energy AND provide cold water cooling instead of air conditioning — utilizing Icelandic cooling reserves as a natural resource.
Renewable energy prices: Establish an auction system that ensures that Icelandic residential and industrial users receive priority at more favorable prices over large foreign investors.

7.2.2 Climate policy

The DDS supports a 41% reduction in carbon emissions from 2005 to 2030 in the sectors outside the ETS quota system — but demands that this target be consulted with the public through a direct democratic vote.
Carbon fee in agriculture: Create incentives for Icelandic agriculture to reduce carbon footprint through vertical farming and reducing cow numbers in favor of manure-based lamb farming — which has a lower carbon footprint and is a typical Icelandic production model.
Nature conservation in law: Introduce more national parks and protected areas with binding protection provisions and penalties that effectively create a barrier.

7.2.3 Volcanic protection and natural hazards

The Reykjanes Peninsula in southwest Iceland is one of the most active volcanic areas in the world. Grindavík suffered greatly in 2023-2024. This is a political problem as much as a geological one:

Establish a National Natural Disaster Relief Fund that is used exclusively to restore the homes and business assets of those affected by natural disasters — without going through long and complicated auctions.
Conduct systematic natural hazard risk assessments as part of planning conditions and prohibit new residential construction in high-risk areas.
Create a comprehensive tourist protection policy with mandatory information at all points of entry and in vehicle rentals.

8. THE DDS MODEL: A PARTICIPATORY GOVERNANCE SYSTEM FOR ICELAND

8.1 Basic understanding

DirectDemocracyS is not a traditional political party seeking power. We are a system for how the public can participate in politics at a grassroots level that is closer to reality and action, and is far from the parliamentary-parliamentary extravagances that characterize traditional democratic systems.

CORE PRINCIPLE: Every citizen has the right to direct participation in all decisions that affect him/her. Representative democracy is the emergency solution when the number of people makes direct participation impossible—no other means of governance is available.

8.2 Pyramid Model: From Individual to National Level

The DDS system is built on a grassroots scale where smaller groups form larger groups through a shared influence transfer. The system is as follows:

Level	Group size	Role	Example in Iceland
1. Arrow group	5 people	Basic unit of share	Neighborhoods in Reykjavik
2. Intermediate	25 individuals	5 groups of arrows together	Neighborhood council
3. Municipal level	125 individuals	25 intermediate levels together	Reykjavik Division Council
4. Regional level	625 individuals	125 svfg.-groups together	South West Council
5. National level	3125+	Overall organization	National Congress of DDS

All decisions go up through this system. No individual or party can overturn the decision of lower levels. It is a stronger democratic safeguard than traditional representative democracy.

8.3 How the DDS model is implemented in Iceland

8.3.1 Step 1: Establishment of micro groups (2026-2027)

Form 500+ micro groups all over Iceland: In neighborhoods, municipalities, workplaces, schools and social gathering places.
Each group receives a three-code anonymity certification that ensures anonymity on the one hand and verifiable participation of real citizens on the other.
Active participation in local decisions: The example is immediately started with participation in municipal councils and planning matters.

8.3.2 Step 2: Digital Participation Platform (2027-2028)

Develop a secure and anonymous digital participation app (allddsAI) that enables all citizens to participate in democratic processes from a smartphone.
Artificial intelligence (AI) assistance to help citizens understand complex issues, get summarized information, and see different perspectives before they vote.
All minutes, votes, and proposals are published publicly in real time — complete transparency.

8.3.3 Step 3: National Integration (2029-2031)

Hold formal consultation meetings with the Althingi, where DDS participation meetings are used to form proposals that are submitted as parliamentary debates.
Open the way for a DDS-approved proposal (with 50,000+ citizen signatures) to be directly voted on in the Althingi without going through the traditional parliamentary party process.
Long-term goal: DDS representative seats where each of their parliamentary decisions requires confirmation from their DDS groups before they vote.

9. MARINE INDUSTRY: A NATIONAL RESOURCE UNDER PRIVATE PROPERTY

9.1 The Quota System: The Political Bombshell

The Icelandic fisheries quota system (Individual Transferable Quotas - ITQ) is among the more controversial and politically critical issues in Iceland. The system was introduced in the 1980s and was originally intended as an opportunity to protect fish stocks. However, it has evolved into something else:

PROBLEM #9 — The Quota System as Wealth Creation: Originally, quotas were given to fishermen based on historical fishing practices. Over decades of buying and selling, quotas have accumulated in the hands of a few large owners who have never gone to sea. Fishermen — those who work and risk their lives at sea — receive rental quotas from those who own them. This is a national natural resource in the hands of a few individuals.

9.1.1 What do the numbers say?

In the 1940s, there were thousands of fishing fleets — now large companies have 80%+ of the quota.
This has devastated rural fishing villages: less money flows to those living by the sea.
Foreign ownership: A portion of quotas is now going into the hands of foreign financial investors who have no connection to Icelandic fishing communities.

9.2 DDS Solutions: Restoring the Sea to the Nation

9.2.1 Quota system reform

Update the quota legal basis to confirm that Iceland's fish stocks are a national resource that is given for use and not for ownership. This is in line with the assumptions of the original law.
Implement a 'community levy': 15% of the quota value goes to a national fund that is distributed equally to all fishing districts.
Foreign ownership limit: No foreign entity can own more than a 15% stake in an Icelandic quota.
Create a new 'cooperative quota' that is given free of charge to cooperative fishing societies in rural areas for 30 years and is non-transferable.
Develop processing incentives: Tax incentives for companies that process seafood domestically instead of shipping raw products abroad. Goal: 70% domestic processing rate in 10 years.

10. IMPLEMENTATION PLAN: HOW WE CHANGE ICELAND IN 10 YEARS

10.1 Phase structure

Phase I — Emergency Action (2026-2027): Incentives and Protection

Case	Action	Cost	Expected impact
Housing	Rental price cap + AirBnB limit	No bones.	Rental price -15% in 2 years
Fisheries	Quota fund fee 15%	No bones.	300 million ISK per year for construction
Politics	Conflict of Interest Law	Low (control.)	More transparency
Education	National exams	1.5 billion	Early detection of defects
Tourism	Nature conservation fee	Low (implementation)	2.5 billion ISK per year for protection
DDS groups	500 emergency groups across the country	500 million kr.	30,000 participants

Phase II — Systemic Change (2028-2030): Revolutionary Restructuring

Case	Action	Cost	Expected impact
Housing	National Housing Fund	50 billion ISK (10 years)	10,000 rental apartments at cost price.
Energy	Wind energy plan + faster permitting.	80 billion kr.	+2,000 MW by 2030
Finance	Expenditure cap rule	No bones.	Less volatility, more security
Education	Teacher purchase +25%	8 billion ISK per year	PISA improvement in 5 years
Participation	allddsAI digital platform	3 billion kr.	200,000 participants
Fisheries	Cooperative quota in rural areas	2 billion kr.	+2,000 jobs in rural areas

Phase III — Long-term development (2031-2036): Secure and sustainable Iceland

Case	Goal 2036	Scale
Housing	Rental price = 25% of the lowest third's income	HMS rental market index
Economy	6 sectors with 8%+ of GDP	Macroeconomic forecast
Energy	No electricity shortage, wind power 20%	Electrical Industry Reports
Education	PISA performance up to 15th place in OECD	PISA test
Democracy	40% of citizens on DDS trips	DDS participation statistics
Fisheries	70% of fish products are processed domestically	Statistics Iceland

11. CONCLUDING WORDS: ICELAND AS A MODEL COUNTRY OF DIRECT DEMOCRACY

11.1 What is unequal in this plan?

This plan is not ideological. It is neither left nor right. It uses the methods that work — regardless of their political label. It is critical of everything that doesn't work, regardless of where it comes from. And it is based on three genuine pillars:

The logic: Every proposal is supported by data, comparisons with other countries, and systematic analyses. We don't shy away from difficult conclusions.
Common sense: We don't pretend to know more than we do. Where data is limited, we say so. Where solutions require testing, we say so.
Respect: Every proposal takes into account the rights of those who suffer the most: tenants, fishermen, immigrants, young people, those who do not own a home.

11.2 A word of caution about DirectDemocracyS

DirectDemocracyS is emerging as a global movement based on collective property rights, participatory governance, and direct democratic systems. We are not a political party seeking power — we are a system that decentralizes power.

CONCLUSION: Iceland has all the conditions to become a model country in the world — in democracy, in sustainability, in equality and in innovation. But this does not happen automatically and it does not happen with the same systems that have started these problems. It takes courage, honesty and public participation on a level that a traditional political system can never achieve. That is why DDS.

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DirectDemocracyS — Direct Democracy — Collective Property Rights

www.directdemocracys.org | public.directdemocracys.org