Thursday

25th Aug 2016

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."

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

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.

News in Brief

  1. Switzerland sees increase in migrants from Italy
  2. Norway to build Arctic border fence
  3. Brexit leader Farage addresses Trump rally
  4. Finland holds 'IS fighter' over 2014 Iraq mass killing
  5. Commission allows Portuguese bank recapitalisation
  6. Ex-commissioner: my rules on emissions are not vague
  7. Leading Danish MEP steps down from post
  8. US cooperating with Turkey on Gulen extradition

Stakeholders' Highlights

  1. EFASpain is not a democratic state. EFA expresses its solidarity to Arnaldo Otegi and EH Bildu
  2. UNICEFBoko Haram Violence in Lake Chad Region Leaves Children Displaced and Trapped
  3. HuaweiMaking Cities Smarter and Safer
  4. GoogleHow Google Makes Connections More Secure For Users
  5. EGBAThe EU Court of Justice Confirms the Application of Proportionality in Assessing Gambling Laws
  6. World VisionThe EU and Member States Must Not Use Overseas Aid for Promoting EU Interests
  7. Dialogue PlatformInterview: "There is a witch hunt against the Gulen Movement in Turkey"
  8. ACCAACCA Calls for ‘Future Looking’ Integrated Reporting Culture With IIRC and IAAER
  9. EURidNominate Your Favourite .eu or .ею Website for the .EU Web Awards 2016 Today!
  10. Dialogue PlatformAn Interview on Gulen Movement & Recent Coup Attempt in Turkey
  11. GoogleA Little Bird Told us to Start Tweeting About Google’s Work Across Europe. Learn More @GoogleBrussels
  12. Counter BalanceThe Trans Adriatic Pipeline: An Opportunity or a Scam in the Making for Albania?

Latest News

  1. Let's fix EU copyright law, for innovation and creativity online
  2. French government tries to defuse burkini row
  3. EU to Turkey: Do you really want to join?
  4. US slams EU competition policies
  5. French diesel committee 'did not cover up for Renault'
  6. EU backs Greek ex-data chief over criminal charges
  7. EU must step up migrant relocation, say Italy and Greece
  8. Merkel seeks post-Brexit vision on EU tour