12/15/2008

Icelandic companies split over EU membership

The Confederation of Icelandic Employers, the umbrella organisation of all Icelandic companies, are split in two over the EU. The leadership of the CIE has been growing more and more EU oriented in the last weeks and months but ths CIE itself has never had any official policy towards the EU. Instead it has been left to the member organisations to form their own policy towards the issue. There have been very mixed opinions with the fisheries firmly opposed, the leadership of the industry very much in favour and everything there between. The leadership of the CIE has very much wanted to use it in favour of EU membership and therefore organised a special vote among all the companies which are members of its members organisations.

The vote was carried out November 24 - December 5. The results were that 43% want the CIE to promote EU membership while 40% do not support that move. 17% did not take a postion. Note that the size of the companies was taken into the picture, that is how much voting weigh it has inside the organisation it is a member of which is determined by its size. And notabene this is not a poll but a vote among all the member companies. The question put to them was this: "Does your company want the CIE to work towards an Icelandic membership of the EU and the adoption of euro as the currency of Iceland?" The possibilities were yes, no and does not take a position.

The results for the fisheries were extremely negative, 94-97% of companies in the fishery sector did not favour the CIE to work towards EU membership. At the same time it was very interesting that 41% of industry companies did not favour such move either while 52% did. The leadership of the industry has long been very pro-EU. But that organisation is obvioulsy also very split on the issue. Even during hard times like these. There has been some discussion lately in Iceland why these results have not been published before by the CIE. Obviously because this vote was supposed to give the CIE a reason to work towards EU membership but of course these results certainly will not.

10/31/2008

No split in the Icelandic Independence Party or change in policy towards the EU

Some foreign media including the Financial Times have been suggesting that there is now a split in the conservative Independence Party (Sjálfstæðisflokkurinn) towards EU membership since its vice chairman and Minister of Education, Þorgerdur Katrin Gunnarsdottir, has said membership needed to be debated rather within weeks than months.

The fact is, however, that this is nothing new. Gunnarsdottir has aired these views before, like last spring, but did not get a very warm hug from the people in the party for doing that. After all the policy of the Independence Party is very clear in its opposition to EU membership. Gunnarsdottir is as a result as good as isolated in the party leadership with her views.

There are simply no signs of a split in the Independence Party over the EU or that its policy on the issue will be changed. The party is on the contrary as before firm in its opposition to EU membership.

10/28/2008

Iceland Trade Minister has been pro-EU for many years

Some foreign media, including Bloomberg and AP, have recently reported that the Icelandic government may be changing its position towards membership of the European Union (EU) and then quoted either the Icelandic Minister of Trade, Bjorgvin G. Sigurdsson, or the Foreign Minister, Ingibjorg Solrun Gisladottir. The fact is, however, that both of them have favoured EU membership for many years and both of them represent the Socialdemocratic Alliance (Samfylkingin) which is as before the only political party in Iceland in favour of starting membership negotiations with the EU.

The social democrats are the junior coalition partner of the conservative Independence Party (Sjálfstæðisflokkurinn) in the Icelandic government. Prime Minister Geir Haarde earlier this week underlined that the policy of his government has not changed and is as before that EU membership is not on the agenda. The task ahead is to restore the Icelandic economy he said and the right time for a debate whether or not Iceland should apply for EU membership is not during the reconstruction.

Iceland PM: EU membership as before not on the agenda

At a press meeting on Tuesday October 27 in the Finnish capital of Helsinki Iceland's Prime Minister, Geir Haarde, underlined his government's policy that membership of the European Union is not on the agenda. The task ahead is to restore the Icelandic economy he said and the right time for a debate whether or not Iceland should apply for EU membership is not during the reconstruction.

No pro-EU protests in Iceland

Some foreign media have reported that a protest meeting, that took place in Reykjavik on last Saturday (October 25), had among other things called for Iceland to immediately begin membership negotiations with the European Union. No Icelandic media, however, reported that the protesters called for EU membership and the press release, which the leaders of the protests sent to the media prior to them, did not mention such a demand one word. According to the media and the press release the aim was to protest the economic situation. Also the protesters claimed that the government was not giving enough information to the public about what was going on. In other words the purpose of these protests were not to call for EU membership.

Iceland's Fisheries Minister still firm on his opposition to EU membership

Some foreign media, including the Euobserver.com and the Irish Times, claimed few days ago that the Icelandic Fisheries Minister, Einar K. Gudfinnsson, had changed his position towards membership of the European Union (EU) from being a firm opponent to saying it was one of the options that had to be looked into. This was claimed to be based on the reportings of Iceland's state radio (RUV).

The truth, however, is that Gudfinnsson never said he was open for EU membership. What he said was simply taken out of context in the foreign media. According to the website of RUV Gudfinnsson said all options regarding getting foreign loans had to be considered. In the news story it is then stressed that Gudfinnsson is as before firmly opposed to EU membership.

The title of RUV's news story is in fact "Ministers disagree on the EU" referring to the fact that Foreign Minister Ingibjorg Sólrun Gisladottir has for many years been in favour of EU membership while Gudfinnsson opposes it.

Gisladottir is chairman of the junior coalition parter in the Icelandic government. Her party, the Socialdemocratic Alliance (Samfylkingin), is the only political party in Iceland which favours EU membership negotiations. However, the senior coalition partner, the conservative Independence Party (Gudfinnsson's party), is opposed to EU membership.

The position of the Icelandic government has not changed since the banking crisis in Iceland started in the beginning of October. Its policy is as before that EU membership is not on the agenda.

8/24/2006

Chances of a pro-EU government in Iceland keep decreasing

It seems as if a similar situation is developing in Iceland as in Norway. That is, we either can have a center-right government (The Independence Party and the Progressive Party) or a center-left government (The Social Democratic Alliance, the Left Green Movement and the Liberal Party). That the voters will be faced with only those two possibilities of government. Neither form will put EU membership on the agenda since the social democrats are the only party in favour of membership negotiations with the EU.

After the Progressive Party's national congress last weekend the chances decreased very much that the Social Democratic Alliance will be interested in forming a government with the party since the new leadership is more center-right than center-left and thus likely to seek continued cooperation with the Independence Party after the general elections in May next year. The new leadership is also more eurosceptic than the previous one.

The leadership of the Social Democratic Alliance now says that the party will focus on trying to form a center-left government with the Left Green Movement and the Liberal Party after the elections if the parties will get a majority in the parliament. That this will be its first choice. In any case the Independence Party, having the Prime Minister now, will have the first chance to form a government and will most likely look first to continued cooperation with the Progressive Party.

So chances of a pro-EU government in Iceland just keep decreasing, especially after Halldór Ásgrímsson left politics. He tried for years to raise the issue, both within his own party and outside it, but without any results. In his parting speech at the party's national congress he again stressed that Iceland should look more to the EU and called for a debate on whether Iceland should join the EU or not. Still the party accepted a resolution stating that the EEA Agreement is suiting Iceland fine and that everything suggests it will continue to do so in the years to come.

The pro-EUs in the party made no attempt this time, like at the previous national congress, to have the party accept a pro-EU policy. After all they had to retreat completely at the previous one. It is also very likely that that attempt was planned by Ásgrímsson himself although he obviously didin't want his involvement to be official.

8/20/2006

EU membership question not on the agenda for years to come

A new chairman was elected at the Progressive Party's national congress this weekend. The new chairman, Jón Sigurðsson former Central Bank president and newly appointed Minister of Industry and Commerce, takes over from Halldór Ásgrímsson who decided this summer to retire from politics after more than three decades in the front line.

Sigurðsson said after the results were in that the question, whether Iceland should join the European Union or not, would not be on the agenda for years to come which marks a certain turn from the policies of the former chairman who has repeatedly called for a national debate on the issue.

Guðni Ágústsson, Minister of Agriculture and who rejects EU membership, was re-elected as vice chairman. Siv Friðleifsdóttir, Minister of Health who vied with Sigurðsson for the chairmanship, said there was no hurry discussing whether Iceland should join the EU or not. Jónína Bjartmarz, Minister of Social Affairs, said the future evolution of the EU was unclear and had to be monitored.

Sigurðsson furthermore announced at the congress his intention to put a special emphasis on promoting solidarity among party members, but no issue has created more rift in the party as the EU question. Huge opposition to EU memberhip exists within the party explaining the new chairman's decision to put the whole question on ice.

The congress' resolution on the EU states that the EEA Agreement secures Iceland's interests well and that everything suggests it will continue to do so in the forseeable future.

8/05/2006

EU Membership Not Too Important For Social Democrats

The chairman of the Social Democratic Alliance (Samfylkingin), Ingibjörg Sólrún Gísladóttir, said in an interview with the Icelandic TV station NFS on Wednesday August 2 that the party was prepared to put its policy, that Iceland should enter membership negotiations with the European Union, aside in order to be able to participate in a coalition government after the next general election due in May next year (2007).

The Social Democratic Alliance is the only political party in Iceland which favours entering membership negotiations with the EU. All other parties reject the idea.

6/02/2006

Iceland PM Says He Lacks Support For EU Entry Talks

Iceland's Prime Minister Halldor Asgrimsson has been trying initiate a national debate on entry into the European Union, but says he lacks political backing at home to start the process. His government, political allies and even his own party don't support his call for a national debate on the topic. Opponents are concerned about loss of independence, fishing rights, and over-regulation. "Iceland is not prepared politically to take such a step," he told Dow Jones Newswires. "It is quite clear this is not on the agenda of the present government."

Nor are there signs that future governments would embrace the project, barring major political shift. Even after Iceland's recent financial turmoil, which might have been less violent inside the euro zone, hasn't changed many minds. Most of Iceland's political community remains unpersuaded that being inside the E.U. and adopting the euro would bring more prosperity and financial security. They say belonging to the European Economic Area, which grants access to E.U. markets, is enough.

"We are not supporting Iceland's participation in the euro zone or the European Union," said Birgir Armannsson, member of parliament for the Independence Party, Asgrimsson's coalition partner and the largest grouping in parliament. "Joining the E.U. would increase regulation in many aspects of society. We support the internal market, but we are not keen on further relationship with the E.U.," he said.

Another obstacle is the touchy issue of ceding fishing rights, a problem even for proponents of E.U. and euro membership. Giving up exclusive rights to its waters is something Iceland isn't prepared to do, say politicians from both sides of the discussion.

Read the whole Dow Jones' article