Negotiators on the Greenlandic side have described the results of the meeting as “satisfactory”, Sermitsiaq reports.

The Greenland Department of Fisheries, Hunting and Agriculture sent representatives to negotiate with Faroese colleagues in Copenhagen. The two self-ruling countries have existing bilateral fishing agreements which allow both to catch and process fish species that might otherwise be unavailable to them.

The agreement for 2012 involves a reduction in the amount of Faroese herring the Greenlanders will be allowed to fish. Access to blue whiting remains unchanged for 2012 with 2,000 tonnes available to Greenlandic boats in Faroese waters. Greenland will once again have 60 days’ available fishing for bottom fish in the Faroese zone, a statement from the government in Nuuk states.

Faroese fishing access to Greenlandic waters is maintained unchanged next year.

At the start of negotiations, it appeared that Greenland would be forced to accept a very large decrease in the quota for herring, but after lengthy negotiations the Department of Fisheries, Hunting and Agriculture was able to secure a higher quota than expected.

The Greenland quota of Faroese herring goes from 3,000 tonnes to 2,350 tonnes. The decline in the assigned amount is down to lower Total Allowable Catch limits and market price trends for herring.

The Greenlandic and Faroese fishing industries were directly represented in the Copenhagen negotiations and the joint assessment of Greenlandic business representatives who participated in the negotiations, according to Sermitsiaq, is that the deal negotiated by the Department of Fisheries, Hunting and Agriculture for next year is “satisfactory”.

There is a great deal of cross-border co-operation in North Atlantic fishing.

Almost directly between the Faroe Islands and Greenland lies Iceland. Iceland was not part of this week’s negotiations but both countries also have bilateral fishing access deals with Iceland and Faroese and Greenlandic vessels regularly use Icelandic ports.

The Central Bank of Iceland recently increased interest rates for the first time since the banking crash, amid renewed economic growth and higher-than-target inflation. Despite opposition from business and consumer groups within Iceland, the monetary policy committee had indicated the rate rise would probably only be the first of several.

The director of the central bank this morning explained that signs now point to higher economic growth in Iceland than previously expected and said that a lot would have to change for the bank to consider putting rates down again. They remain at 4.5 percent.

A statement released by the monetary policy committee states that the newest economic figures suggest that production growth and lowering unemployment have begun and that gradual interest rate rises are unlikely to stall that recovery.

On the other hand, the statement says, lower than expected inflation in August, a strengthening krona currency and the poor outlook on world economic markets meant that the committee did not feel it was appropriate to raise interest rates again right away.

Mar Gudmundsson, Director of the Central Bank of Iceland, told RUV that economic indicators look good. There is reasonable economic growth in Iceland predicted at around 2.5 percent — but will probably turn out to be higher than that with hindsight.

Gudmundsson said that the higher-than-hoped-for rate of inflation is reason enough to start hiking interest rates — but added that the overall picture is quite bright.

Oygard told Aftenposten that other European nations could learn from Icelandic experience that it is not enough to concentrate on economic matters and reducing government deficits, without also stimulating economic growth.

Oygard praises Iceland for having dealt with the impacts of the banking crisis with grit and conviction, reviving the banking sector in a relatively short time and having turned state finances around.

The general public has, on the other hand, been in a very tight spot; with high unemployment and householders and businesses hit with crippling debt problems. Ways to stimulate economic growth must be sought, Oygard warns.

The exchange rate collapse of the Icelandic krona has compounded the country’s problems, the Norwegian believes. He says the euro serves states better in difficult times, because it can increase stability and international trust in the country’s financial system. It is possible to implement spending cuts and tax rises in line with international competitiveness in order to end recession, instead of needing to devalue a small currency like the krona.

MPs were welcomed back to work by a silent protest outside parliament, where protesters had erected a large number of black crosses, making Austurvollur square look like a particularly creepy graveyard. The demonstrators are protesting what they describe as the still-worsening financial position of families and households in Iceland.

Inside Althingi House, Prime Minister Johanna Sigurdardottir gave her opening address to MPs where she went over her government’s achievements so far.

She said that the country has succeeded in beginning to rise again and is working its way out of trouble, RUV reported. Sigurdardottir believes the government has made great strides on the economy and unemployment, under very difficult circumstances. She insists the future for Iceland is bright.

Bjarni Benediktsson, leader of the opposition Independence Party, disagreed; saying that the government is completely out of touch with its citizens. Leader of the Progressive Party, Sigmundur David Gunnlaugsson said that public patience with the unpopular government is at breaking point.

Opposition leaders are calling for prompt elections, saying the country needs a more competent and new approach; while the government argues that nobody would do a better job and that the opposition has become expert at turning black into white and refusing to acknowledge all the good work which the current government has done.

The debate continues.

A statement from Islandsbanki says that if Central Bank of Iceland figures on payment transactions are accurate, it means that credit card turnover has increased by six percent year-on-year. Domestic-issued credit card turnover only went up by three percent. The lower figure comes despite the injection of cash from the new national wage contract in June. Due to a delay in working out the new contract, all full-time workers received a one-off payment of ISK 50,000 on 1st June. They also received a pay rise.

One of the stranded tourists says that there is a good mood among the castaways, who are now due to return home on Thursday.

“Here we are in nearly 30-degree heat and we found out last night through the internet that all flights here would be cancelled today — naturally because of the general strike taking place here in Greece,” tourist Jon Oli Sigurdsson told Visir.is from his Corfu hotel. He said that the travel agency had tried to get a plane out to them yesterday and get them home ahead of the strike; but that the effort failed for some reason. He said they are relying on the holiday rep at the hotel for information now, but that the rep has an awful lot to do right now.

The general strike has been called to last two days and it began shortly after Prime Minister George Papandreou called on the Greek parliament to vote in favour of sweeping austerity measures. Huge crowds of protesters are expected today in Athens and other major cities to call on parliament to reject the painful measures.

If the parliament does not vote in favour of further austerity, Greece will in all likelihood not receive more emergency financial aid from the EU and the IMF. The Greek parliament is expected to vote on the measures tomorrow.

The Althingi Fisheries and Agriculture Committee has decided to request that the Ministry of Fisheries and Agriculture compile a report into the actual impacts of the present-day quota system since 1991.

The opposition party members of the committee called for a meeting today following the release of an economists’ report into the proposed changes claiming that the economic impacts could be severe. The bills’ supporters claim, however, that the nation’s fishing and fish stocks must be looked at from all angles; not just economics. It was agreed to ask the ministry to investigate the social and economic pros and cons of the current system.

Meanwhile, a new report from the OECD economic and development agency warns the Icelandic government against experimenting with the quota system; claiming that there is very little that can actually be done to improve parts of the system people feel to be the least fair.

The same report on Iceland, released today, predicts three percent economic growth for Iceland amid growing consumer demand and lowering unemployment.

The OECD authors claim that Iceland has been unusually successful in sustainably exploiting its fish stocks due to the current quota system. While they acknowledge that it is unfair in many ways, the fact that most big operators have purchased their quota means that the government can do little to take it back. They suggest a hike in resource exploitation levies as the best way for the national coffers to net more fish money.

They also recommend that the Icelandic government issue lower quotas than the Marine Research Institute suggests in order to maximise demand and increase market fish prices, RUV reported.

Ironically, all this comes on the same day that Marine Research Institute biologist Jon Kristjansson published his own report claiming that evidence suggests it is not possible to increase the size of the cod stock by catching fewer cod. He even suggests it more likely that increasing catches will cause the stock to grow.

Olof Nordal, the deputy Independence Party chairman, says that the office fears the new bill goes against the national constitution.

Jon Bjarnason, Minister of Fisheries, spoke out strongly in favour of his ministry’s fishing bill in Althingi yesterday. The bill has split MPs’ opinion, with some saying such changes are premature and others thankful that such changes are finally under discussion.

When asked why she is supporting a bill that potentially breaks the constitution, the Prime Minister responded that such claims do not stand up to scrutiny and that although they are political in nature, they were in fact written by an economist.

Among the provisions of the bill are increases to licensing fees to fishing companies and large changes to the very foundation of the way Iceland’s biggest industry is run and regulated. The parliamentary debate is expected to drag on somewhat.

The previous OECD projection from November speculated that the Icelandic economy would grow by just 1.5 percent in 2011 and 2.6 percent in 2012; which is less optimistic than the newest report.

According to the latest report, better economic growth is being driven by investment in energy intensive industry, and by an upswing in consumer demand.

A ministry press releases states that the report is a part of Iceland’s accession process to join the European Union and that similar reports will be presented to the EU every year for as long as the accession process lasts.

The report has four main sections and is based on the country’s budgetary forecast to 2013, the so-called 20/20 strategy and on the Icelandic statement of intent to the IMF.

The EU will send copies of the report to EU member states’ governments and it will be discussed by the EU Economic and Financial Affairs Committee. It will also later be on the agenda at the meeting of all EU heads of state later this spring, RUV reports.