Before the crisis hit, only the Social Democrats had a clear stance on European integration – they wanted Iceland to become an EU member state. The current situation has only strengthened their position
Bilyana Ilieva Raeva
The financial crisis has given new impetus to talk of Iceland joining the EU, according to Bilyana Ilieva Raeva.
Writing in The Parliament Magazine, the chair of parliament's delegation for relations with Iceland says she fully supports Iceland's accession, saying that the Nordic country could provide a strategic partner for the EU.
Read the full text of the article below:
During the last six months relations between the EU and Iceland have undergone great changes, not institutionally or at an official level, but rather unofficially. It all started with the turmoil that was provoked by the financial crisis. The credit crunch reached the shores of Iceland with a vigorous velocity and was the cause of unprecedented social upheaval that recently culminated in a dramatic change in government. While EU membership questions are far from new in the national debate, the serious monetary crisis have prompted politicians, businesses, employees and households to think radically about ways to bring stability to the island’s economy. The euro has become the fuel of the debate.
Before the crisis hit, only the Social Democrats had a clear stance on European integration – they wanted Iceland to become an EU member state. The current situation has only strengthened their position. At the same time, the rapidly evolving situation has put real pressure on the other political parties to make up their minds. Some are still in the process of formulating their position while others, like the Progressive party (Liberal Democrats), have already made up their minds adopting a resolution calling for negotiations with the EU on Iceland’s accession.
The grave economic and social situation in Iceland requires the new government to take rapid measures in order to tackle the crisis. As it is modestly foreseen by the country’s central bank, unemployment could rise to 11 per cent in the beginning of 2010 (traditionally unemployment in the country has lingered at around one to two per cent) and GDP could shrink by 10 per cent. In this perspective the main objectives of prime minister Johanna Sigurdardóttir’s government will be to stabilise the internal situation through regulatory and monetary reforms, but also by protecting owners and economic actors.
Irrespective of the upcoming elections and whether possible EU membership will feature highly on the political agenda during the campaigning, the question will neither fade away nor linger idly by. It seems that most are in favour of the adoption of the euro but opinions fluctuate widely when it comes to the methodology behind such an adoption. What is clear though is that there seems to be a general consensus among the political forces that a double referendum is needed on EU questions, i.e. a referendum on whether to start negotiations and then a referendum on the final outcome.
Concerning the EU position on the matter, as enlargement commissioner Olli Rehn said, if Iceland submits its candidature it could join with Croatia as soon as 2011. Accession talks should be rapidly closed since Iceland complies fully with most of the European acquis due to the unique nature of its EEA agreement. A potential sticking point during negotiations between the commission and Icelandic authorities could be the fishery dossier, but a protocol exempting Iceland from participating partly or fully in the common European fisheries policy could be envisaged, at least for some period. An equally important case in point is Iceland’s unique contribution to the field of renewable energy in Europe.
In my capacity as chair of the European parliament’s delegation for relations with Iceland I fully support the eventual accession of Iceland to the EU. The Nordic country is a strategic partner for us and its accession to the EU could give the possibility to go further in this partnership. It will also be of great help to the harshly hit Icelandic economy to recover and to benefit from the European solidarity and economic possibilities.
The latest issue of the Parliament Magazine is now available in the digital online archive
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