Important to reach agreements regarding the Icelandic banks

Icelanders need to establish unity on the issue of future measures to address the current financial situation. The social partners have suggested to the government extensive collaboration on measures to respond to the financial crisis. The Chairman of the Board of Directors of the Confederation of Icelandic Employers (SA), Thor Sigfusson, emphasised the importance of reaching agreements with Iceland’s neighbouring countries on the arrangement of the deposit insurance schemes at the Icelandic banks. Sigfusson also said the goal should be that the current creditors of the Icelandic banks become shareholders in the new state banks.

This materialised at an open meeting held by the Confederation of Icelandic Employers on the situation in the Icelandic economy and its future prospects. Sigfusson stated the importance of ensuring IMF assistance  for Iceland. He said, however, that if this does not happen, the authorities should immediately consider the unilateral adoption of another currency, euro or even USD, in collaboration with Iceland’s neighbouring countries.

Sigfusson furthermore pointed out how the government of Iceland needs to put much more effort into interest assessment in connection with a possible EU membership of Iceland, and to formulate a united stance with opposition parties and to prepare Iceland’s membership in the European Monetary Union. Such discussions should be launched without delay with a view to quick action.

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