Það er fullyrt að gjaldþrotið muni auka atvinnuleysið.

Questions & Answers about Það er fullyrt að gjaldþrotið muni auka atvinnuleysið.

Why does fullyrða (to claim) become fullyrt in this sentence?
This is the core of the impersonal reporting passive. We use the dummy pronoun það followed by er and the past participle of the reporting verb. Because there is no real noun for the participle to agree with, it defaults to the neuter singular form (fullyrt). You will see the exact same pattern with verbs like segja (Það er sagt að...) and telja (Það er talið að...).
Why is muni used here instead of the standard indicative mun?
This is because the sentence uses indirect or reported speech. The main clause (Það er fullyrt að...) sets up a claim rather than stating an undeniable fact. In Icelandic, subordinate clauses that follow verbs of claiming, thinking, or saying often trigger the subjunctive mood. Therefore, the indicative mun shifts to the subjunctive muni.
What case is atvinnuleysið in here?
It is in the accusative case because it is the direct object being acted upon by the verb auka (to increase). It might look like the nominative because atvinnuleysi is a neuter noun, and in Icelandic, neuter nouns always have identical nominative and accusative forms, even with the definite article (-ið) attached.
How is the word gjaldþrotið (the bankruptcy) built?
It is a compound noun formed from gjald (payment or fee) and þrot (depletion, exhaustion, or collapse). Literally translating to 'exhaustion of payment', it paints a very logical picture of bankruptcy. The -ið at the end is the neuter singular definite article.

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