This was Iceland's first leftist government, and was plagued with troubles from the outset, not the least of which was the relative hostility and distrust of the United States and other NATO allies.

He however gained great respect of political co-workers and adversaries alike, and is fondly remembered as one of Iceland's greatest 20th-century politicians.

[7] Hermann's government justified its refusal to harbor Jewish refugees by referring to the poor economic conditions in Iceland.

In 2007 Hermann was the subject of a mild controversy, when DNA-testing proved that he had, during his years as a public official, fathered a child out of wedlock.

He filed a paternity case in 2004 and after several years of legal battles, a DNA test in 2007 indicated a 99.9% probability that Hermann was Lúðvík's father.