Iceland and the European Union
1078260
220760402
2008-06-21T13:06:03Z
88.169.12.11
/* Public opinion */
{{bilateral|Euro-Icelandic|European Union|Iceland|filetype=svg}}
{{Politics of Iceland}}
{{Foreign relations of the European Union}}
The relationship between '''Iceland and the European Union''' is currently defined through [[Iceland]]'s membership of the [[European Economic Area]], which allows the country access to the single market of the [[European Union]] (EU).
==Background==
Iceland has never applied for membership. [[Iceland]] is, however, a member of the [[European Free Trade Association]] (EFTA), along with [[Norway]], [[Switzerland]] and [[Liechtenstein]]. In 1992 Iceland and its EFTA partners (except for Switzerland, which rejected the agreement in a referendum) signed the [[European Economic Area]] (EEA) agreement with the European Union, which was designed to allow the EFTA countries to participate in the European [[Single Market]] without having to join the EU. The EFTA Secretariat in Brussels reported in 2005 that Iceland had adopted approximately 6.5% of EU regulations as a result of signing the EEA agreement.<ref>[http://eunews.blogspot.com/2005/05/iceland-only-adopting-65-percent-of-eu.html Iceland only adopting 6,5 percent of EU laws through the EEA agreement], EU related news from Iceland, 05.09.2005</ref>
==Membership issues==
The most contentious issue regarding possible EU membership for Iceland is the loss of control over [[natural resources]], notably [[Fishery|fishing ground]]s due to the Union's [[Common Fisheries Policy]]. Opponents also point to the good performance of the [[Icelandic economy]], high growth and low [[unemployment]], as a sign that there is no pressing need to join the EU. It is commonly argued that the membership of EEA already brings most of the potential benefits of an EU-membership without the costs. Then there are those who view the EEA membership as costly and the experience with the EEA as a negative one and therefore oppose EU-membership. Unwillingness to hand over a part of Iceland's [[sovereignty]] to a supranational organization is another source of opposition to EU membership, as in other European countries.
Proponents of EU membership largely rely on economic arguments: they view the [[euro]] as a solution to the dramatic [[exchange rate]] fluctuations of the [[Icelandic króna|króna]], which have posed a challenge for many Icelandic export businesses. It is also pointed out that Iceland has Europe's highest grocery prices and completely opening the Icelandic market to EU products might result in lower prices. Former [[Minister for Foreign Affairs of Iceland|Foreign Minister]] [[Valgerður Sverrisdóttir]] said in an interview with [[Iceland Radio]] that she seriously wishes to look into whether Iceland can join the euro without being a member of the 27-nation EU, according to Norwegian news NRK. Valgerður believes it is difficult to maintain an independent currency in a small economy on the open European market. ([[Montenegro]] has already unilaterally adopted the Euro[http://euobserver.com/9/24924], and it is used ''de facto'' in UN-administered [[Kosovo]].)
==Government opinion==
The former coalition government of Iceland, consisting of the [[Conservatism|conservative]] [[Independence Party (Iceland)|Independence Party]] (''Sjálfstæðisflokkurinn'') and the [[liberal]] [[Progressive Party (Iceland)|Progressive Party]] (''Framsóknarflokkurinn''), was against joining the EU. The [[Social Democratic Alliance (Iceland)|Social Democratic Alliance]] (''Samfylkingin'') is in favour of membership negotiations resulting in a deal which would then be submitted to a [[referendum]]. Following the [[Icelandic parliamentary election, 2007|2007 election]], the Independence Party and the Social Democratic Alliance entered a new coalition. The policy of the government is not to apply for EU membership. On the other had it has set up a special committee to monitor the development within the EU and suggest ways to respond to that.<ref>[http://www.dw-world.de/dw/article/0,2144,2556758,00.html Iceland Mulls EU Membership], DW-World, 24.05.2007</ref>
Former [[Prime Minister of Iceland|Prime Minister]] [[Halldór Ásgrímsson]], seems to be in favour of joining the EU, and predicted on [[8 February]] [[2006]] that the country will join the EU by 2015. He added that the decisive factor will be the future and the size of the eurozone, especially whether Denmark, Sweden and the UK have joined the euro or not. [http://euobserver.com/9/20865] His prediction, however, did not receive much support in Iceland; instead, it received much criticism, not the least from people within his own government.<ref>[http://eunews.blogspot.com/2006/02/msson-as-good-as-alone-with-his.html Prime Minister Ásgrímsson as good as alone in his predictions], EU related news from Iceland, 02.14.2006</ref>
The current [[Prime Minister]], [[Geir H. Haarde]], has on a number of occasions stated his opposition to EU membership, both as Foreign Minister under Ásgrímsson and after taking office as Prime Minister. In response to Halldór Ásgrímsson’s earlier prediction Haarde said: "I don't share that point of view. Our policy is not to join in the foreseeable future. We are not even exploring membership." Further in a speech at a conference at the [[University of Iceland]] on [[31 March]] [[2006]], Geir Haarde repeated what he had said on a number of occasions – that no special Icelandic interests demanded membership of the EU. In the same speech he further explained in detail why it would not be in the interest of Iceland to adopt the euro.<ref>[http://www.teameurope.info/node/91 Slashing the rumours: Iceland is far from adopting the euro], Team, 02.05.2007</ref>
At a meeting with members of his party on [[17 May]], [[2008]] Haarde said he believed the cost of joining the EU simply outweighed the benefits to his opinion and therefore he was not in favour of membership.<ref>[http://www.mbl.is/mm/frettir/innlent/2008/05/17/geir_eg_vil_ekki_ganga_i_esb Geir: Ég vil ekki ganga í ESB] Mbl.is 17.05.2008</ref>
==Public opinion==
An opinion poll on the matter conducted in August 2005 (after the rejection of the proposed [[Treaty establishing a Constitution for Europe|European Constitution]] in France and the Netherlands) showed that 43% of respondents were in favour of EU membership while 37% were against, 20% were undecided. When asked whether Iceland should start membership negotiations, 55% were in favour while 30% were against. 54% of respondents were against adopting the euro while 37% were in favour. <Ref>[http://www.si.is/malaflokkar/althjodlegt-samstarf/frettir-og-greinar-um-althjodamal/nr/2191 Meirihluti hlynntur aðild að ESB], Samtök iðnaðarins, 01.09.2005</ref> A poll produced on [[18 February]] [[2006]] (after the prime minister's prediction) by the newspaper ''[[Fréttablaðið]]'' found 42% opposed to applying for EU membership while 34% were in favour.<ref>[http://euobserver.com/9/20966 Iceland cool on EU membership], EU Observer, 02.22.2006</ref> A new extensive poll, released on [[11 september]] [[2007]], by Capacent Gallup showed that 48% of respondents were in favour of EU membership while 34% opposed. Furthermore a whole 58.6% wanted to begin admission negotiations with EU while only 26.4% opposed, and 53% were in favour of adopting the [[euro]], 37% opposed and 10% undecided. The poll also showed that supporters of the 4 biggest political parties in Iceland, were all in favour of starting admission negotiations in a "clean" majority, that is to say more were in favour of negotiations than those who opposed and those who were undecided combined. <ref>[http://www.si.is/malaflokkar/althjodlegt-samstarf/frettir-og-greinar-um-althjodamal/nr/3037 Euro support in Iceland hits five-year high], SI(samtök iðnaðarins(Association for Icelandic industry)), 09.11.2007</ref>
Another poll from February 2008 again showed a clear majority in favour of membership negotiations; more than half of those asked stated the situation was more favourable for membership than a year ago. According to the same poll 55.1 percent of the people want Iceland to apply for EU membership while 44.9 percent say they are against joining the union. Support for EU membership has increased by 19 percent since January 2007.<ref>[http://www.icelandreview.com/icelandreview/daily_news/?cat_id=16568&ew_0_a_id=301546 Majority of Icelanders Wants to Join EU] IcelandReview, 02.26.2008</ref>
==References==
{{reflist}}
==See also==
* [[Enlargement of the European Union]]
* [[Norway and the European Union]]
* [[Switzerland and the European Union]]
==External links==
* [http://ec.europa.eu/comm/external_relations/iceland/intro/index.htm European Commission > The EU's relations with Iceland]
* {{Is icon}} [http://www.evropa.is The Icelandic European Movement (favours Icelandic membership)]
* {{Is icon}} [http://www.heimssyn.is Heimssýn, the cross-political organisation of Icelandic eurosceptics]
* [http://eunews.blogspot.com/ An Icelandic eurosceptic blog (Hjörtur J. Guðmundsson)]
[[Category:Foreign relations of Iceland|European Union]]
[[Category:History of Iceland|European Union]]
[[Category:Enlargement of the European Union]]
[[Category:Third country relationships with the European Union]]
[[nl:IJsland en de Europese Unie]]