Thursday

23rd Nov 2017

Iceland halts EU talks as elections loom

Iceland's government has suspended negotiations to join the EU ahead of parliamentary elections in April that could see a eurosceptic government elected with a mandate to halt membership talks.

The government said in a statement that a deal would not be reached in time, commenting that "it is now clear that the negotiations will not lead to an Accession Treaty during the present electoral term."

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

  • Iceland - a bumpy EU path (Photo: biologyfishman)

Elections are scheduled for April 27, with opinion polls indicating that the centre-left coalition government is lagging around 15 points behind the conservative Independence party, which opposes EU membership and is widely expected to form a coalition with the liberal Progressive party.

The governing coalition of the centre-left Social Democrats and the Left-Green party swept to power in 2009 in the aftermath of a banking crisis which saw Iceland's three main commercial banks collapse in 2008 with liabilities of over ten-times the size of the country's annual GDP.

Since the crisis, Iceland's debt to GDP ratio soared from 25 percent in 2007 to 130 percent in 2011 after needing an €8 billion euro bailout to avoid defaulting on its debts.

The country is also still facing court actions in the court of the European Free Trade Association (EFTA) over the compensation of over 500,000 EU depositors who lost their savings in Icelandic banks following the crisis.

Prime Minister Jóhanna Sigurðardóttir submitted the country's EU membership application in July 2009, promising to hold a referendum on the completion of negotiations.

Iceland membership of EFTA already requires it to adopt large chunks of EU single market law, but it has faced difficulties in reaching an agreement with EU officials over fisheries policy - traditionally the main branch of the Icelandic economy - and the Common Agricultural Policy.

The government said that it had addressed 29 of the 33 chapters of the EU's rule-book known as the acquis communautaire in relation to the membership talks. However, it acknowledged that "there have been delays in opening negotiations on important chapters such as fisheries as the EU has postponed finalising work on its screening report on the chapter for many months."

"Regarding the 16 chapters which now stand open, Iceland‘s negotiating committee and experts will continue their cooperation with the EU," said the government statement but added that this would not require "further government or parliamentary decisions."

Peter Stano, spokesman for EU Enlargement Commissioner Stefan Fule, said that the EU executive was hopeful that talks would resume.

The commission "continues to be convinced that the EU accession of Iceland would be of mutual benefit and remains committed to accompanying Iceland on its path towards EU membership," he said.

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic Energy Ministers Pledge to Work More Closely at Nordic and EU Level
  2. European Friends of ArmeniaLaunch of Honorary Council on the Occasion of the Eastern Partnership Summit and CEPA
  3. International Partnership for Human RightsEU Leaders Should Press Azerbaijan President to End the Detention of Critics
  4. CECEKey Stakeholders to Jointly Tackle the Skills Issue in the Construction Sector
  5. Idealist Quarterly"Dear Politics, Time to Meet Creativity!" Afterwork Discussion & Networking
  6. Mission of China to the EUAmbassador Zhang Ming Received by Tusk; Bright Future for EU-China Relations
  7. EU2017EEEstonia, With the ECHAlliance, Introduces the Digital Health Society Declaration
  8. ILGA EuropeFreedom of Movement For All Families? Same Sex Couple Ask EU Court for Recognition
  9. European Jewish CongressEJC to French President Macron: We Oppose All Contact With Far-Right & Far-Left
  10. EPSUWith EU Pillar of Social Rights in Place, Time Is Ticking for Commission to Deliver
  11. ILGA EuropeBan on LGBTI Events in Ankara Must Be Overturned
  12. Bio-Based IndustriesBio-Based Industries: European Growth is in Our Nature!

Latest News

  1. EU awaits UK proposals in final push for Brexit breakthrough
  2. Berlin risks being 'culprit' for stalling EU, warns Green MEP
  3. Eastern partners, eastern problems
  4. Germany's Schulz under pressure to enter coalition talks
  5. LuxLeaks trial re-opens debate on whistleblowers' protection
  6. Wilders says Russia is 'no enemy' ahead of Moscow visit
  7. EU must put Sudan under microscope at Africa summit
  8. Mali blames West for chaos in Libya