The possibility of dismissing the EEA Agreement discussed in a parliament committee

The possibility of dismissing Iceland's membership of the European Economic Area (EEA) is set to be discussed soon in a special parliament committee on European affairs. Halldór Ásgrímsson, Prime Minister of Iceland, informed the Icelandic parliament, the Althing, about this yesterday. The committee was appointed last summer and has representatives from all the political parties represented in the parliament. The majority of the people in the committee is, however, eurosceptic.

The chairman of the committee, Björn Bjarnason Minister of Justice, said to the Icelandic newspaper Fréttablaðið that the ideas of Ragnar Árnason, professor of economics at the University of Iceland, about possible dismissal of the EEA Agreement, would be discussed in the committee. However, Bjarnason said the committee did not intend to make any decisions on the matter at this point but only to obtain information.

The ideas of Professor Árnason were in short that Iceland should consider dismissing the EEA Agreement and stay outside both the European Union and the European Economic Area. Instead the country should seek to sign bilateral agreements with the EU concerning commerce and other issues similar to what Switzerland has done.

It should be emphasised that this does not mean that the Icelandic government has any intention of dismissing the EEA Agreement. Icelandic authorities simply wish to examine all possibilities when it comes to ensuring Iceland's interests abroad.

Press article:
Fréttablaðið

Related story:
Says it's time to reconsider Iceland's EEA membership

Iceland is doing great outside the European Union

According to the Statistics Iceland's estimation Gross Domestic Product (GDP) in Iceland grew at a rate of 5.2% in the year 2004 compared to 4.2% in the year before. Unemployment in 2004 was on average about 3% and in last February it was only 2,8%. Those in Iceland who favour EU membership always run into great difficulties when asked why Iceland should join the Union when we are doing much better outside it than most of its memberstates and in some cases even all of them. They have no answers to that. As a result Iceland is most definately not on its way to join the EU. There are simply no compelling reasons to do so, but at the same time many strong reasons to remain outside.

Press articles:
Bylgjan
Morgunblaðið
Ríkisútvarpið

Website:
Statistics Iceland

No change in policy towards the EU in Iceland says Foreign Minister Davíð Oddsson

Halldór Ásgrímsson, the Icelandic Prime Minister and chairman of the Progressive Party, has claimed there was a turning point in the party's attitute towards the European Union during the party's general meeting this weekend (February 25-27). The resolution accepted by the meeting was that "within the Progressive Party gathering of information and work on shaping objectives and possible preparation for membership negotiations with the EU would continue. The conclution of this work should be introduced during the next general meeting in the beginning of the year 2007. If membership negotiations would occur the conclution of them should be put to a referendum." In other words the party will continue its former policy of discussing possible preparation for possible EU membership negotiations which could possibly take place sometime in the future. This is in fact the same policy adopted by the Progressive Party's last general meeting in 2003.

Davíð Oddsson, Foreign Minister of Iceland and chairman of the Independence Party, said today in an interview with the National Broadcasting Service that this was no turning point at all. No new decisions had been made, neither within any party nor the government. Nothing new had happened given that he was able to read the resolution of the Progressive Party. The vice-chairman of the Progressive Party, Guðni Ágústsson, has claimed the same.

Oddsson said furthermore that there was no reason for Iceland to join the EU. Iceland was simply doing very well outside the Union. He also said the EEA agreement between the EFTA and the EU was in good shape and serving its purpose as it should. There was no need to upgrade it as some have claimed. He said this was the opinion of the Icelandic Foreign Ministry after having looked into the matter.

The present government in Iceland is a coalition government formed by the Independence Party and the Progressive Party. The pact between the two parties states that EU membership is not on the agenda.

Press articles:
Ríkisútvarpið
Morgunblaðið

Website:
Forsætisráðuneyti.is

Setback for the European Movement in Iceland

The European Movement in Iceland issued a press release yesterday (February 28) declaring its pleasure with the discussion about European matters during the Progressive Party's general meeting this weekend. However, it did not mention one word the final resolution of the meeting - something the movement would have most definitely done if it would have been pleased with the result of the meeting. The movement didn't even make the slightest attempt to interpret the result in its own interests.

This is considered as showing particularly well that the result of the Progressive Party's general meeting in matters concerning the EU was a setback for the pro-EU movement in Iceland.

Press article:
Morgunblaðið

Website:
Evrópusamtökin

'Nothing new happened', say spokespersons of other Icelandic political parties

There was no turning point in the Icelandic Progressive Party's attitude towards the EU during the party's general meeting this weekend. This is the common opinion of spokespersons of the four other political parties represented in the Icelandic parliament, the Althing, according to the Icelandic National Broadcasting Service.

The chairman of the parliament's Committee on Foreign Affairs and MP for the Independence Party, Sólveig Pétursdóttir, said the resolution of the meeting will not change anything for the coalition government of the two parties. The pact of the government is that EU membership is not on the agenda.

The opposition parties said it seemed as this whole thing was just a show to draw the attention from other tough issues within the Progressive Party. They said it was obvious that no decision was made on the EU issue. Össur Skarphéðinsson, chairman of the Social Democratic Alliance which is the only party in Iceland which is in favour of EU membership, added that this whole thing was a "successful spin about a possible policy sometime later in the future."

Press article:
Ríkisútvarpið
Stöð 2

EU membership not on the agenda within the Icelandic Progressive Party

The result of the general meeting of the Iceland's ruling Progressive Party, which was held during this weekend, was that neither EU membership nor EU membership negotiations are on the agenda. The debate on the EU issue at the meeting was tough and is was obvious that there is a major opposition to EU membership within the party.

After a workgroup on foreign affairs within the Progressive Party had suggested before the weekend that the party should put membership negotiations with the EU on the agenda those supporting it were in constant retreat and had to withdraw one proposal after another during the meeting because of the opposition from eurosceptic members of the party.

According to the final version, which was at last approved yesterday (February 27), the previous process of gathering information, framing of objectives and possible preparation for membership negotiations with the EU will be continued within the party. The result of this work is to be introduced at the next general meeting in 2007. The final version then states that if there will be membership negotiations with the EU the results of it shall be put to a referendum.

In short this only means that the party is going to continue its previous work of putting together possible objectives for a possible membership negotiations which may possibly occur sometime in the future. So this is actually as vague as possible as one Icelandic journalist put it.

Earlier proposals had among other things included a paragraph saying the party should aim at membership talks with the EU during this term or the next one. They also had a paragraph claiming that in the light of "an indefinite standing" of the EEA agreement and "general evolution" of EU the interests of Iceland were likely to be better off within the Union. Both of these paragraphs were among those rejected at the meeting.

The wording of the final version of the Progressive Party's general meeting this weekend is actually much less determined than the resolution approved by the party's general meeting in 2003. At that time the party was doubtless nearer to EU membership negotiations than now. Also the resolution in 2003 left it open that the framing of Iceland's objectives in case of possible membership negotiations could be performed by official institutions and not only the party. But the verison approved now made it clear that this was only to be done within the party.

According to the news of the Icelandic TV station Stöð 2 yesterday those opposed to EU membership within the Progressive Party managed to undo all attempts of those of the opposite opinion to move the party nearer to membership negotiations with the Union. And the news of the Icelandic radio station Bylgjan said that during the general meeting it was like those in favour of EU membership negotiations "had seven reverse gears like was said about the Italian army during the Second World War." Their retreat was simply complete.

Press articles:
Morgunblaðið
Bylgjan
Stöð 2
Nrk.no

EU membership talks not on the agenda says Ásgrímsson

The Icelandic newspaper Morgunblaðið has just reported that Halldór Ásgrímsson, chairman of the Progressive Party and Prime Minister of Iceland, said in his overview speech today at the party's general meeting that he thought it was neither timely nor senseble to start membership talks with the EU during this term. He also reminded his party members that accepting such proposal would violate the pact of the coalition government.

However, he also said that members of the party shouldn't shy away from discussing Iceland's relationship with the EU since membership of the Union could come sooner or later.

Press articles:
Morgunblaðið
Nrk.no

Proposal of EU talks put forward mainly to promote discussions

A workgroup on foreign affairs within the Icelandic Progressive Party has suggested that the party should put membership negotiation with the European Union on the agenda during this term. The Progressive Party holds its general meeting this weekend and members of the party will decide during it whether they support this suggestion or not. However, the chairman of the workgroup, Ármann Höskuldsson, said in an interview today with the Icelandic radio station Bylgjan that these suggestions were mainly put forward to promote discussions during the meeting about matters concerning Iceland and the EU. He also said in a TV interview with Stöð 2 this evening that he did not expect the suggestions to be approved as the workgroup has recommended.

But in any case the Progressive Party as such has not decided to put negotiations with the EU on the agenda or any such thing. So far it has merely been suggested by the workgroup on foreign affairs. The members of this workgroup were neither elected nor hand picked for the job. On the contrary any member of the Progressive Party could join it according to Siv Friðleifsdóttir, MP for the party, in an interview with Bylgjan today. One of its members was the chairman of the European Movement in Iceland who is a member of the party.

It was made clear today that the leadership of the Progressive Party had as such nothing to do with these suggestions according to the online version of the Icelandic newspaper Morgunblaðið. Also the vice chairman of the party and Minister of Agriculture, Guðni Ágústsson, has declared his absolute opposition to them. He also said today that there are simply no reasons for Iceland to consider joining the EU. The chairman of the party, Halldór Ásgrímsson Prime Minister, has refused to comment on the issue saying he will discuss it during the meeting.

Jón Kristjánsson, the Icelandic Minister of Health and MP for the Progressive Party, said in an interview with the National Broadcasting Service this afternoon that if these suggestions would be approved during the general meeting it would be a clear violation of the pact between the two parties forming the present coalition government in Iceland, the Progressive Party itself and the Independence Party, which states that EU membership is not on the agenda. He also said that all there was on the agenda was to fulfill the pact throughout this term.

And Árni Magnússon, the Icelandic Minister of Social Affairs and MP for the Progressive Party, said this evening in a TV interview with Stöð 2 that he was opposed to membership talks with the EU. That means three out of five ministers of the party have today openly expressed their opposition to the suggestions. It is also clear that there is a tough resistance to any such suggestions among common members of the party.

But even if these suggestions would be approved by the members of the Progressive Party during the meeting this weekend, which is far from being certain, it is hard to imagine them to come true considering many reason and not the least the fact that the Independence Party is utterly against EU membership.

Besides, how could the Progressive Party put membership talks with the EU on the agenda in the government if at least three out of its five ministers are opposed to the idea?

Press articles:
Bylgjan
Stöð 2
Morgunblaðið
Morgunblaðið

Says it's time to reconsider Iceland's EEA membership

Ragnar Árnason, professor of economics at the University of Iceland, says in an interview with the Icelandic newspaper Viðskiptablaðið January 7 that it is time to reconsider whether is serves the interests of Iceland at present to be a member of the European Economic Area (EEA). The EEA Agreement is an agreement between the EFTA countries Iceland, Norway and Liechtenstein and the European Union which allows them to participate in the Union's Single Market but obliges them at the same time to adopt those of the EU's regulations and directives which concerns it and to pay a certain amount yearly to the Union's construction and development funds.

Mr Árnason says the situation has changed very much since the EEA Agreement was accepted by the Icelandic government a decade ago. He says it was probably the right decision to join the EEA at that time but now the EEA Agreement doesn't have the same importance for the interests of Iceland as back then. The Agreement is even in some ways starting to be harmful to Icelandic interests because of the regulations and directives attached to it (Still this is only a part of the total EU regulation burden). Tariffs have been lowered significantly in the world in the last decade and a special international institution, the World Trade Organisation (WTO), has been established to ensure this. Members of it have committed themselves not to raise tariffs. So even if Iceland would dismiss the EEA Agreement the Icelandic government could demand that tariffs on Icelandic export to the EU would not be raised on these grounds. At the same time the regulation burden attached to the EEA Agreement increased every year. Therefore it was time to rethink the situation and see if other options would perhaps secure the interests of Iceland better than the EEA or EU membership.

Mr Árnason doesn't think EU membership would serve the interests of Iceland. "What is the European Union?" he asks and answers his own question: "It's a customs union. It protects itself from outsiders with walls of tariffs. It is in many ways very reactionary. Those who control everything, the Central European states France, Germany, Spain and Italy, are not the countries of the free market and have never been. Those are countries which have cetralised their economy very much. Their economy is in many ways incomplete with much rigidity in the labour market. They have a very complex and wide-ranging system of subsidies and grants. State interference in the economy is vast. And in many ways the European Union is driven by dreams of past greatness; dreams of keeping Europe as a superpower. The result of all this is that growth in the EU is rather small compared to America and Asia."

Mr Árnason says the question is why Iceland, which has more growth than the EU, higher average income and enjoys certain independence and freedom, should want to join this company? What is to gain? To him the only argument would be that Iceland would have a little more influence on the regulations and directives it has to adopt through the EEA Agreement. He nevertheless says he has always found those arguments quite naive since it is not likely that much would change concerning that. The influence of Iceland would hardly be much within the EU. Mr Árnason points out that it ought to be remembered that the influence of each memberstate of the EU as such was in decrease but the impact of population and size was on the other hand increasing. This tendency was very much present today in the proposed EU Constitution and it was clear that this evolution would continue.

The interview with Mr Árnason has resulted in widespread discussions in Iceland. The common attitute is nevertheless that the EEA Agreement is serving the interests of Iceland and working fine. The response by the pro-EU movement was that Mr Árnason's speculations were stupid. The Eurosceptic side said this was a typical reaction for the pro-EU movement not wanting to discuss any other possibilities for Iceland than closer ties with the EU. Davíð Oddsson, the Icelandic Foreign Minister, said Mr Árnason's speculations were unexpected but certainly worth looking into as all other possibilities.

Mr Árnason's personal homepage:
http://www.hi.is/~ragnara

Iceland's PM does not mention the EU in his keynote speech

Halldór Ásgrímsson, the new Prime Minister of Iceland, did not even mention the European Union in his first keynote speech at the starting of the Althing last monday October 4. This is regarded as to confirm his earlier statements claiming that Icelandic EU membership is not on the agenda. In fact the agreement between the two parties forming the government, Mr. Ásgrímsson's Progressive Party and the Independence Party led by Davíð Oddsson, states that EU membership is out of the question so no one expected the Prime Minister to act against that. However, as Foreign Minister Mr. Ásgrímsson was often regarded as quite positive towards the EU so many thought he would at least mention the Union in some way. But as said earlier he didn't mention it one word. This is considered to be quite a disappointment to the pro-EU movement in Iceland.

The speech by Mr. Ásgrímsson (In Icelandic)