Inspired by Iceland

EU urged to prop up krona upon Icelandic membership

Iceland’s Minister for Foreign Affairs says he is emphasising in Iceland’s EU accession talks that the Icelandic krona must be propped up by the European Central Bank immediately after Icelandic membership of the European Union and until Iceland adopts the euro, if and when that happens. The minister added that accession talks are likely to take longer than optimists had hoped.

Minister for Foreign Affairs, Ossur Skarphedinsson told Visir.is that he believes direct negotiations over agriculture could begin by next Easter and direct fisheries negotiations as early as next autumn. These are the two areas of negotiation everybody agrees will be the hardest.

The most optimistic voices had been saying Iceland’s accession talks could be over within 18 months because the country already adheres to 70 percent of EU laws; but this time frame now seems highly unlikely.

Although he expects a long, hard accession process; Ossur Skarphedinsson remains optimistic the process will be completed before the next elections.

Skarphedinsson says that Icelandic euro membership would save the nation over ISK 100 billion a year in supporting the weak krona. He is also adamant that the EU’s popularity will increase in Iceland as public knowledge and understanding of it increases during the negotiation process.

17 Responses to “EU urged to prop up krona upon Icelandic membership”

  1. Peter London/Krakow says:

    Maybe the Eu would force new elections on Iceland to have its politicians replaced by (non-corrupt) foreigners.

    What planet is this man living on? he expects the EU to prop up a WORTHLESS CURRENCY and then swap that currency for real money at some point in the future. Euro membership requires certain conditions to prove that a countries economy is capable of entry to the eurozone, Iceland is not anywhere near capable of fitting the requirments, economically and politically its unworthy of EU membership.

    Thank God Icelanders whill keep their crappy country out of the EU and the Euro, we have enough crooks with the Bulgarians and Greeks, thank you very much.

  2. Burt says:

    Mr. Skarphedinsson will be Waiting for Godot. His optimism is cute but unrealistic. Is he running for office or looking for a job in marketing after he leaves the government? There is no reason at present for the EU which has huge problems with Greece etc to prop up another currency. If Iceland were admitted (in the Theater of the Absurd), the Euro would move down again.
    While Iceland is making attempts to restructure debt and build some sort of economy other than fish, the attraction of Iceland for the EU is zero in the immediate future. Maybe in ten years?
    Furthermore, Icelanders are too independent to accept orders from the EU.

  3. Jon Kasper Hoyvik says:

    I agree that Iceland should not join the EU. Not for the offensive and bigoted reasons stated in the first reply, but I think Iceland should retain independence. It was foreign commercial interest that brought about the currency crisis. Better for Iceland to cultivate ties to Norway,the Faeroe Islands and even Greenland.

  4. Axel says:

    The Scots have killed or alianated all their fish because the world famous EU fisheries policy,
    its not our fault all the Mackerel is now in Icelandic waters, eating up everything in its path.

    Iceland is not likely to join the EU for many reasons, no one wants to join, and it would take a million years to reach a agreement with the EU about natural resources, the only way that would work is if we can change the EU, which is not likely to happen.

  5. Fisy says:

    Peter London Krakow did write :
    >What planet is this man [ Össur ] living on?

    For once Peter and I do agree on some thing. I of course dont agree with rest of his post.

    But Össur, when he is not acting like child+, or frothing up his mouth and falling for the extermists trap of wanting knee jerk reactions++, he is just looking forward to his new job as EU commission when he can become the highest paid politician in Iceland ( and above most other politicians in EU as well )+++.

    Certainly he is foating in cloud cook-ow land with this ideas about what EU Commission will do. China for example have already given a currency swap agreement.

    Where was that from EU comissoin and EU Central bank when we needed it Össur? After you and traitor to his supporters Steingrímur J. did try and push through the so called IceSave ” deal ” ?

    +http://www.icenews.is/index.php/2010/01/06/iceland-fm-declines-india-trip-with-president/
    ++http://www.icenews.is/index.php/2010/06/02/iceland-foreign-affairs-committee-urges-diplomatic-split-from-israel/
    +++http://www.icenews.is/index.php/2010/07/29/icelandic-president-best-paid-political-figure-of-2009/#comment-221530

  6. your money is getting my money says:

    objection jon kasper, you are obscuring the truth. it was financial iliteracy and unprecedebted spending of the locals which brought iceland where it is now.

  7. SIR EURO says:

    If the icelandic prime minister says that then you just can see how bad the situation is in Iceland. An 5 years university educated teacher lets say, earns after taxes around 180,000 isk. That is 1200 euros, the salary of a supermarket worker in Spain. We can keep talking on what Iceland and EU win or loose, but at the end of the day what really matters is that at least you earn a salary in your country that lets you have a decent life. Food and almost everything else ( except houses) are more expensive in Iceland than in many other EU countries, but the salary is about the half?? I can’t understand how icelanders can make a living with such low salaries and so high prices. I feel sorry for them. We in the EU should think about helping Iceland like we do help other poor countries like eastern european countries. About the icelandic króna, well, is not even worthy to say anything about it…

  8. JimmyJam says:

    “it was foreign commercial interest that brought about the currency crisis.”

    No it was evil elves. Had nothing to do with you fine people.

  9. Peter London/Krakow says:

    “The Scots have killed or alianated all their fish because the world famous EU fisheries policy, its not our fault all the Mackerel is now in Icelandic waters, eating up everything in its path.”

    The tradition of kilts and claymores scared them off. I heard the final straw was the discovery that the Scots could swim and their insistance of wearing nothing under their kilts so terrified the mackrel that they left for Icelandic waters. Less shrivelled tackle in icelandic waters, you see.

  10. Fisy says:

    Jon Kasper Hoyvik did write :
    >I agree that Iceland should not join the EU.

    As it is people of Iceland — tax payers and voters — that do decide this not some out of touch people currently sitting in government chairs that do represent less than 30 % of voting public in 2009 ( let alone now ) — I think we are safe on this.

    >Not for the offensive and bigoted reasons stated in the first reply

    Peter London / Krakow has a way with words, doesnt he.

    He is certainly articulate in being misleading. And in being offensive too.

    Independence outside the EU but within EFTA ( be it EEA like Norway or bilateral arrangement like Swizerland ) is the obvious way.

    This way we can trade freely with any country that does want to trade with us. Not just have to do what the EU commission does decide in tarrifs and who we can trade with as the executive body that does control the EU customs union.

  11. Fisy says:

    >The minister added that accession talks are likely to take longer than optimists had hoped.

    They did have this one devilish opportunistic chance to force Icelander in.

    And they blew it.

  12. Peter - London/Krakow says:

    “Independence outside the EU but within EFTA ( be it EEA like Norway or bilateral arrangement like Swizerland ) is the obvious way.”

    And the EU now has two reasons for ending such arrangements with Iceland, be it kicking Iceland out of the EEA or simply leaving itself. EFTA has no value to the EU, it simply allows certain states to plunder EU members.

  13. robert gatt says:

    iceland has an 200 mile limit around its shores, with vast fish stocks, by joining the eu this would open the flood gates for more countries to come in and plunder their fish stocks, and really who wants to controlled by a bunch of corrupt politicians living hundreds of miles away in another country who are hellbent on getting their own way all the time, norway works within the EFTA, but at the same time they defend their fishing borders very rigorously,

  14. SIR EURO IS BACK says:

    “The Scots have killed or alianated all their fish because the world famous EU fisheries policy”

    Alex you cannot be more wrong, in the late 80′s fisheries plumbed all around the world. EU fishing regulation is mostly based in restricting fishing so fishing can be a sustainable activity for the future. That is why many fishermen had to abandon fishing in all EU countries.

    In Iceland EU would impose the same regulations, which are based on responsible management of the fisheries. The bankrupted icelandic government have increased the quantity of fish that can be taken from icelandic waters, radically putting it fish stocks in great danger. Lets say, they have crossed the line too far because the nation MORE FISH TO SELL IT FOR MONEY…. Many experts know that this is having DEVASTATING consequences for the Icelandic fish stocks and that will drastically affect the economy in the future. But the government is so desperated that they are about doing just anything to get iceland out of the deep hole it is now.

    “Really who wants to ( be)controlled by a bunch of corrupt politicians”
    The icelandic politicians and bankers have gained the guinness record in CORRUPTION, not even the russian mafia can equal them. Two years have passed and the investigations have been mere THEATRE. The nations keeps in complete ruin, the money has not been recovered, and the most important of all: THE SOCIAL AND POLITICAL STRUCTURE THAT ALLOWS THINGS LIKE THIS TO HAPPEN KEEPS BEING THE NATIONAL MODEL.

    Iceland is famous internationally for:

    - Political corruption.
    - Political and economic incompetence.
    - Bad performing of Justice system, lack of laws to assess many issues.
    - One of the worst welfare systems in Europe with great lack on students grants ( not loans), grants for research, great reduction of health services, low coverage of people with dissabilities, and a long list…

    Iceland is a pirate’s bay… No one in the whole world wants to trust its CORRUPTED BANKERS AND ITS INCOMPETENT GOVERNMENT… and the only thing Iceland has is THOUSANDS OF ANGRY INVESTORS who are trying to get their moneys out of the country ASAP.

    So EU is bad for Iceland? I think is quite the opposite. As I have said many times, I think it is much better for the EU to keep buying cheap fish from Iceland than having to come up here to solve all your economic problems and put in effect laws so your politicians and bankers can keep in line and out of corruption. They have been doing it in Italy and it is working so well so far, sometimes even arresting entire families if necessary, confiscating all their possessions, while here in Iceland they have been just doing whatever they want. LETS FACE IT! ICELAND IS CONTROLLED BY A PUNCH OF FAMILIES-MAFIA, ICELAND IS A FEUDAL COUNTRY!! and that is why THEY don´t want people to believe that getting into the EU is not only good, but also the only reasonable way of getting this country out of the shit… They always come with the typical question of the fish… when they are the ones who are destroying the icelandic fisheries, as they have also stolen all the money from the country…

Trackbacks/Pingbacks

  1. [...] strength of the Icelandic krona despite the very weak Icelandic economy, reader Edward tipped me of this link discussing the Icelandic Krona.In short, the article says that the ECB might be ready to prop up the value of the Icelandic Krona, [...]


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