Reykjavík is Eidur Smári in 1998
Many middle-aged football fans remember Eiður Smári Guðjohnsen's short stay at KR in 1998. The star had been injured for a long time, and his physical condition had deteriorated accordingly. Everyone knew that Eidur Smári was far too good for KR and the Icelandic league, but he had been written off abroad after a long-term injury. He had to start somewhere.
At KR, Eidur Smári met Atli, a man named Eðvaldsson. He was then the coach of KR – and later the Icelandic national team. Legend has it that Atli took Eiður Smári under his wing, and did his best to get him in shape. Atli not only ordered strict training, but also had to take a firm grip on his diet. Some said that Atli had sent a spy after Eiður who was to confiscate chocolate bars and other unhealthy foods if he was caught.
Reykjavik is not in playing form
My background is in sports and business. In fact, I find many similarities between the two. Healthy competition, and strong teamwork bring out the best in everyone. Good manners more often than not lead to good results.
But now I'm in politics and some may wonder why I'm reminded of the story of Eiður Smári in KR in 1998.
Upon closer inspection, however, there are many similarities between Eiður Smári's physical condition at that time and the operation of the City of Reykjavík in recent decades. The task is the same. The City of Reykjavík needs to be brought into playing shape, and if that is achieved, the possibilities are endless. Just like with Eiður Smári.
Unsustainable basic operations
Unfortunately, the basic operations of the city of Reykjavík are unsustainable. The city treasury - the city's basic operations - has not been profitable for a long time, but is supported by one-off income, such as land sales, or dividend payments from the city's subsidiaries. Especially the Energy Corporation.
Local government taxes are at the statutory maximum, and subsidiaries' tariff increases are regular and far above the price level. Nothing more than disguised tax collection.
The city of Reykjavík is the leading inflationary force in the country. Reykjavík also does not seem to enjoy any economies of scale in terms of the number of employees or the cost of the services it does provide. Money is wasted on projects that yield nothing more than a show of virtue, such as the Human Rights Office. The city does not tender out projects sufficiently – for example, waste collection – and operates probably the largest software house in the country in competition with private parties.
Over the past decade, the city's debt per capita has steadily increased, by about 25% at constant prices. At the same time, city residents have felt the deterioration of service levels, and there is no evidence of investment in infrastructure. Everyone knows the state of the city's school buildings, and the dilapidated transportation infrastructure. We have taken on debt and received nothing in return. Bad business, that.
The possibilities are endless.
But back to Eiður Smári. The rest of the story is known to everyone. Eiður only played a few games with KR, he got into shape, and was back in professional training before long. His career was of course impressive. English champion with Chelsea and European champion with Barcelona. No need to say more about it.
The task at the City of Reykjavík is not unlike that which faced Eiður Smári and Atli Eðvaldsson in 1998. We need to exercise discipline in operations, watch every króna, focus on the city's core projects and unwind the debt accumulation of past years. Reduce the superstructure by, among other things, utilizing artificial intelligence, tender out projects, stop competing with private parties and cancel pet projects. Projects need to be prioritized anew, and embark on an infrastructure initiative that will benefit future generations.
The possibilities of the city of Reykjavík are endless. But first we need to get the city into playable shape.
