Albert Guðmundsson was a minister for the Independence Party.

However, after being implicated in a large financial lawsuit concerning the defunct shipping company Hafskip, he was deemed to be unsuitable to continue holding such office by his fellow party members.

In 1989, Albert resigned as chairman and was appointed as Iceland's ambassador to France.

The remaining Members of Parliament joined the government on 10 September 1989 in a coalition with Social Democratic Party, People's Alliance and Progressive Party under the leadership of Steingrímur Hermannsson.

In the 1991 elections, the Citizen's Party had fragmented so much that it did not enter.