Iceland in the Eurovision Song Contest 2014 compete with at the Eurovision Song Contest. "Lífið kviknar á ný" was performed in English as "Up and Away", while "Enga fordóma" was performed in a mix of Icelandic and English. Televoting solely selected "Enga fordóma" performed by Pollapönk as the winner in the second round. As winners of the competition, Pollapönk won a monetary prize of 1 million Icelandic króna and the right to represent Iceland in Copenhagen. During the semi-final allocation draw on 20 January 2014 at the Copenhagen City Hall, Iceland was drawn to compete in the first half of the first semi-final on 6 May 2014.
Iceland and the International Monetary Fund reforms the authority of the FME was increased to improve the stability of the Icelandic banking sector and enforce the introduced measures. Along with regulatory and banking changes, fiscal policy was also modified to respond the the shock in the following ways. The assumption of the banking sector debt by the Bank of Iceland was one of the initial measures acted upon. As a consequence the public debt increased from 29% in 2007 to 105% of GDP by 2009. To cope with the increased debt burden the Icelandic government adopted a medium term debt reduction plan; the structural balance be