Ólafur Ragnar Grímsson

In the 1996 presidential election, he was elected with 41.4% of the votes cast.[8]

In the 2004 presidential election, Ólafur was re-elected with 85.6% of the valid votes cast, but that election also saw a record number of empty/invalid ballots (21.2%) and an exceptionally low turnout of 62.9% (usually 80–90%), both of which have been interpreted as dissent with the president's decision not to sign a controversial media law. Since then, the issue of a constitutional amendment to revoke the veto power of the president has been raised by the Independence Party. Some have also wanted to rest that power with the people themselves, who could then force referendums to be held on laws by – for instance – collecting a certain number of signatures.

On 1 January 2008, in his new year's address, Ólafur announced his intention to seek a fourth term in office later in 2008. Because there was no challenger, he was automatically re-elected and sworn in for another term on 1 August 2008.[9]

In the aftermath of the 2008–2011 Icelandic financial crisis, Ólafur criticized other countries for lack of help to Iceland.

In early November, the President attended a traditional informal lunch with all ambassadors to Iceland, held by the senior Danish ambassador. According to a confidential memo from the Norwegian embassy, quoted in the Norwegian newspaper Klassekampen, the President said: "The North Atlantic is important to Scandinavia, the US and Britain. This is a fact these countries now seem to ignore. Then, Iceland should rather get some new friends". He praised Norway and the Faroe Islands for their swift decision to grant major loans to Iceland. He also said Iceland should rather invite Russia to use the Keflavík Air Base. According to the memo, an "amazed and smiling" Russian ambassador said Russia did not have any need for this. Ólafur also criticised the International Monetary Fund for the system's flaws and for its mistreatment of Iceland. He said it was part of Icelandic political mentality to "fight alone" rather than being threatened into submission, and that he expected Iceland to overcome the crisis sooner than the US and Britain by showing initiative and international activity in new fields. The memo underlined that the President of Iceland has no political power and that no other government official had presented similar points of view "to the same degree".[10][11][12] The Danish ambassador to Iceland, Lasse Reimann, confirmed to the daily Politiken that the lunch had taken place, but declined to discuss on the President's comments.[13]

On 5 January 2010, the President of Iceland vetoed a measure of the Icelandic government to repay the governments of Britain and the Netherlands for their bailouts of customers of private Icelandic banks (no such bailout was required under Icelandic law, though on 26 May 2010 the EFTA found it was required by the terms of Iceland's membership of the EEA).[14] The President's veto was upheld by the people of Iceland when they voted upon the measure in March 2010. This dispute is known as Icesave dispute.

On 20 February 2011, the President of Iceland again vetoed an effort by the Icelandic government to repay (in installments over a period of years) the governments of Britain and the Netherlands. In a referendum held on 9 April 2011, Icelanders rejected for a second time a proposal to pay $5 billion to Britain and the Netherlands.[15][16] Nearly 60% of Icelanders rejected the proposal put forward by the government.[17] The President's veto was thus upheld by the people.

Ólafur during the WEF 2013

Ólafur Ragnar announced on 4 March 2012, that he would be seeking a fifth term as the President of Iceland in the 2012 presidential election.[18] Election took place on 30 June 2012 and Ólafur received 52.78% of votes cast.

In a statement to the country on 1 January 2016, Ólafur Ragnar announced that he would not run in the 2016 presidential election, wanting "to transfer the responsibilities of the president onto other shoulders".[19] He later withdrew the statement and decided in April to run again,[20] citing political unrest after the fallout of the Panama Papers leak, which implicated Prime Minister Sigmundur Davíð Gunnlaugsson and forced the minister to resign after large anti-government protests.[21] After Guðni Th. Jóhannesson and Davíð Oddsson announced their candidacies, he again changed his mind and on 9 May declared he would not run.[22]

Reykjavik Grapevine and the news site Kjarninn revealed that Ólafur Ragnar's wife, Dorrit Moussaieff, had connections to an offshore company in the British Virgin Islands. Ólafur Ragnar had denied any personal or family ties to companies in tax havens. The company was owned by the parents of Dorrit. According to Kjarninn, the company, Lasca Finance, was in operation from 1999 to 2005. The financial statements of Moussaieff Jewelers Limited show it received almost £7 million (US$10.2 million or €9.1 million) in interest payments from Lasca in 2000–2005.

•  Iceland:
  • Collar with Grand Cross Breast Star of the Order of the Falcon

Ólafur Ragnar Grímsson coat of arms as a knight of the Swedish Order of the Seraphim

•  Denmark:
  • Knight of the Order of the Elephant[25]
•  Germany:
  • Grand Cross Special Class of the Order of Merit of the Federal Republic of Germany
•  Lithuania:
  • Grand Cross of the Order of Vytautas the Great
•  Norway:
  • Grand Cross of the Order of St. Olav
•  Slovenia:
  • Recipient of the Order for Exceptional Merits[26]
•  Sweden:
  • Knight of the Royal Order of the Seraphim
  • Recipient of the Ruby Jubilee Commemorative Medal of King Carl XVI Gustaf[27]