As an European (not from iceland):

>Right now, they're increasing taxes on parking,

Great! Less car-centric infrastructure.

>toll roads

Great! Less cars.

>and per-kilometer driving tax

Great! Less cars on the road.

>And foreigners not in the know are about to get whalloped for $1000 extra around the ring road.

Which is probably the point (same with the hotel tax), if I had to guess? I mean Iceland gets a lot of tourists, and they have no obligation to provide free roads to everyone. In fact, they have a beautiful country, so if they can, they should capitalize on it. How is this a proof that "The stupidity of European politicians is that extreme, it cannot be explained away by assuming a lack of education" (the original claim)? They're doing their job.