Local elections will take place on the 26th of May – representing one of the big tests for the coalition government led by Prime Minister Katrin Jakobsdottir of the left-green. Key topics at stake are: infrastructure spending, the housing market, environmental protection and childcare facilities. We think investors should put Iceland back on their radar screen as the country boasts solid macroeconomic fundamentals, it is less correlated with the European business cycle than other countries at this juncture and positioning of non-residents across asset classes is light. At a time when markets need to deal with a less favourable business cycle phase, Iceland represents in our view one of the “stress free” destinations in the European space. Other macro-stories that we like at the moment for that reason: Greece, Romania and Russia.