Iceland to be fast-tracked into the EU

[belfastuniguy 18]

Iceland to be fast-tracked into the EU

Plan for cash-strapped state to become member by 2011

• Ian Traynor in Brussels, additional reporting by Valur Gunnarsson in Reykjavik
• The Guardian, Friday 30 January 2009
• Article history

Iceland will be put on a fast track to joining the European Union to rescue the small Arctic state from financial collapse amid rising expectations that it will apply for membership within months, senior policy-makers in Brussels and Reykjavik have told the Guardian.

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Ian Traynor on fast-tracking Iceland into the EU and the euro Link to this audio

The European commission is preparing itself for a membership bid, depending on the outcome of a snap general election expected in May. An application would be viewed very favourably in Brussels and the negotiations, which normally take many years, would be fast-forwarded to make Iceland the EU's 29th member in record time, probably in 2011.

Olli Rehn, the European commissioner in charge of enlargement, said: "The EU prefers two countries joining at the same time rather than individually. If Iceland applies shortly and the negotiations are rapid, Croatia and Iceland could join the EU in parallel. On Iceland, I hope I will be busier. It is one of the oldest democracies in the world and its strategic and economic positions would be an asset to the EU."

Rehn's support for swift Icelandic membership was echoed by senior European diplomats in Brussels. "We would like to see Iceland join the EU," said one. The current and next holders of the EU presidency, the Czechs and then the Swedes, are also strong supporters of EU enlargement and will deploy their agenda-setting powers to help Iceland.

The conservative government in Reykjavik, in power for 18 years, collapsed this week, the first government to fall as a result of the financial meltdown which has wrecked the Icelandic currency, the krona, wiped out savings and pensions, required a massive IMF bailout, sparked unprecedented riots in Reykjavik, and forced the formation of a caretaker centre-left government until new elections can be held, probably on 9 May.

EU membership will be a central theme of the election campaign, with the social democrats - the senior partner in the coalition interim government with the anti-EU Left Greens - pushing to join the EU and to swap the krona for the single European currency as soon as possible.

"The krona is dead. We need a new currency. The only serious option is the euro," said a senior Icelandic official.

The financial disaster in Iceland has triggered extreme volatility among voters. While there is support for joining the euro as a currency safe haven to protect Iceland from a battering by the markets, there is less enthusiasm for full EU membership, particularly among those in the vital fishing sector. This factor has fuelled talk of "unilateral euroisation", meaning that Iceland might join or use the single currency without being admitted to the EU. This is dismissed in Brussels as nonsense.

Though deeply indebted and in dire straits, the Icelandic economy is minuscule compared with the main EU member states and therefore unlikely to prove a destabilising force. Iceland has already secured a multibillion pound IMF loan and is unlikely to prove a drain on the EU budget.

But joining the euro is a different question. Despite growing sentiment in Iceland that Brussels and the single currency might be the remedy to the worst crisis the country has seen, the road to the euro is likely to be fraught with problems because of the strict rules governing the eurozone under the Maastrict treaty. Although the economic and financial crisis has seen a loosening of the single currency rulebook, current Icelandic interest rates of 18% would pose big problems for mainstream single currency members.

Already Christian Democrats in the Netherlands, the party of the prime minister, are coupling their hostility with Turkey's membership of the EU to criticism of Iceland's ambitions. Such hostility might increase but senior figures in the European commission believe that Reykjavik brings more assets than liabilities to the EU.quote>

 

The Guardian

[duack 14]

Well that's good, the expansion of the EU has allowed faster economic growth through the consept of comparitive advantage. the part I dont get is why they wont let Turkey in. Its just as good as any eastern Europe economy.

[Patricius Maximus 236]

the part I dont get is why they wont let Turkey in. Its just as good as any eastern Europe economy.quote>

I don't live in Europe, but from what I've seen, the main gripe with Turkey is whether or not it is European enough to join the European Union.

[TheQuiltedLlama 34]

Originally posted by: Patricius Maximus

the part I dont get is why they wont let Turkey in. Its just as good as any eastern Europe economy.quote>

I don't live in Europe, but from what I've seen, the main gripe with Turkey is whether or not it is European enough to join the European Union.quote>

I'd say it is more to do with Human Rights issues.

[belfastuniguy 18]

I'd say it is more to do with Human Rights issues. quote>

I agree, Turkey has made some great progress but its human rights are still far below the level that we demand in the EU.

[Jerebannus XVI 7]

Originally posted by: TheQuiltedLlama

Originally posted by: Patricius Maximus

the part I dont get is why they wont let Turkey in. Its just as good as any eastern Europe economy.quote>

I don't live in Europe, but from what I've seen, the main gripe with Turkey is whether or not it is European enough to join the European Union.quote>

I'd say it is more to do with Human Rights issues.quote>

And the fact that some member states wouldn't be prepared to accept a predominantly muslim country in what has traditionally been "christan" Europe. I'm still on the fence as to whether Turkey should be able to join the EU, I'd like to see a lot of progress being made, particularly with giving the Kurds the recognition they deserve.

Not to stray from the main subject, I saw this coming, Iceland is close to absolute collapse and joining the EU could certainly rescue the country. I do see why the fishing industry might be reluctant, the EU Fisheries Policy restricts fishing in certaing areas, Norway is in the same position, their fishing sector is huge and joining the EU would hurt it badly. I for one, am happy to welcome Iceland as a new member state, one of the most liberal countries in the world. That can't be a bad thing

[saltandsauce 0]

Originally posted by: duack Well that's good, the expansion of the EU has allowed faster economic growth through the concept of comparitive advantage. the part I dont get is why they wont let Turkey in. Its just as good as any eastern Europe economy.quote>

They won't let Turkey in the EU because it isn't geographically in Europe (by "they"  i mean Germany And the UK)

well Iceland if you want to ruin your fishing industry go ahead and take the bait

prepare yourself

i seem to recall Britain using this arguement of "weren't skint let's go into the EEC- it's only a trading block" we joined it and - nothing changed.

other than tons of bereaucracy and legislation was dumped on us. Farming ruined and fishing stocks diminished (by Danish sand eel fishers to make some kind of biofuel - other fish used to eat those sand eels)

[belfastuniguy 18]

They won't let Turkey in the EU because it isn't geographically in Europe (by "they" i mean Germany And the UK)

well Iceland if you want to ruin your fishing industry go ahead and take the bait

prepare yourself

i seem to recall Britain using this arguement of "weren't skint let's go into the EEC- it's only a trading block" we joined it and - nothing changed.

other than tons of bereaucracy and legislation was dumped on us. Farming ruined and fishing stocks diminished (by Danish sand eel fishers to make some kind of biofuel - other fish used to eat those sand eels)quote>

Well that would be one opinion.

Another could argue that EU membership has actually benefited the United Kingdom. We could mention the hundreds of millions in farming payments to UK farmers, the money spent on infrastructure projects across the UK, the environmental protection programmes and investment that has allowed restoration of native wetlands, forests and the regulations that have cleaned up our beaches, rivers and cities. The immense benefits being apart of the single market has been to the UK, its people and its companies.

I suppose we could also look at the regulations that the EU have brought into place allowing for greater protection of individuals against discrimination and unlawful actions by employers and organisations.

Then, and in my opinion one of the greatest results of the EU, is the benefits we all enjoy of a vibrant, strong, secure and peaceful Europe. One of the primary aims of the European Union to ensure Europe never sees war on its soil perpetrated by its own nations. That benefits Europe and it certainly benefits the UK.

You see....always nice to hear another opinion on whether the EU benefits the UK.

[hamsterTK 93]

Does the EU not have any control of fishing in the Meditterranean?

I saw a think on TV about off the coast of Spain, tuna in particular is being overfished, yet nobody seems to care. Meanwhile the Atlantic fisherman just have to suffer? what's up?

[belfastuniguy 18]

@hamaster: Yes it does, it controls all fishing within the Exclusive Economic Zone of the European Union.

http://upload.wikimedia.org/wikipedia/commons/b/b7/European_Union_Exclusive_Economic_Zones.PNG

[Lambert14 0]

Also with Turkey's entry into the EU all its citizens would be granted free movement in all of europe, flooding the richer nations labour markets. And the country itself would have a massive voting amount based on its population in comparison with the other leading EU States. Not to mention turkeys dismal economy and its terrible human rights record. I doubt turkey will ever be allowed into the EU, for good reasons...

[Shadow Assassin 336]

We could mention the hundreds of millions in farming payments to UK farmersquote>

Question: Could someone explain to me just what the point of those subsidies is? At first glance, they appear to be as a direct result of Britain's entry into the EU in order to compete with the poorer nations on an agricultural basis... is there anything more to them?

Not to mention turkeys dismal economy and its terrible human rights record.quote>

So did a few of the Eastern European countries and they still got let in, if I remember correctly.

[fukuda 351]

I suppose we could also look at the regulations that the EU have brought into place allowing for greater protection of individuals against discrimination and unlawful actions by employers and organisations.quote>

I guess that the largely discriminated (an indian man was set on fire yesterday night in italy btw) migrant population in Italy, and the hugely underpaid outsider workers, just to cite some examples of cases where the EU refused to act or even threatened without acting, would beg to differ

I saw a think on TV about off the coast of Spain, tuna in particular is being overfished, yet nobody seems to care. Meanwhile the Atlantic fisherman just have to suffer?quote>

The same atlantic fishermen that signed a contract to overfish the Moroccan coast?

Fishing is anyways doomed as a job, these atlantic fishermen may complain, but without the regulation there would be no fish to capture to begin with.

flooding the richer nations labour markets.quote>

Is that wrong? We need workers to do the most uncomfortable jobs anyway. And they are already migrating without being part of the EU, you won't reduce their migratory flux without acting and just ignoring, Turkey entering the EU would stabilize the country's economy and actually reduce the flux.

And the country itself would have a massive voting amount based on its population in comparison with the other leading EU States.quote>

So? The EU is already controlled by a few (2-3) powerful states, this would actually bring more flexibility to it

Question: Could someone explain to me just what the point of those subsidies is? At first glance, they appear to be as a direct result of Britain's entry into the EU in order to compete with the poorer nations on an agricultural basis... is there anything more to them? quote>

Making sure that completely uncompetitive farmers are still able to sell their products.

[saltandsauce 0]

Another could argue that EU membership has actually benefited the United Kingdom. We could mention the hundreds of millions in farming payments to UK farmers, the money spent on infrastructure projects across the UK ..... The immense benefits being a part of the single market has been to the UK, its people and its companies.quote>

what immense benefits? nothing changed when we joined the EEC in 1973, the only change came when thatcher ripped up the regulations on the banking sector and look at where that got us.

as far as i've seen all of Britains infrastructure was paid for by the taxpayer not the EU.

and farmers struggle because half of what they grow they can't actually sell under "quality control"(wool being one example) and the supermarkets pricing them out. (tate and lyle sugar corp. gets the same benefits as Mr. teuchter the tenant farmer)

[toxicpiano 125]

Originally posted by: saltandsauce

as far as i've seen all of Britains infrastructure was paid for by the taxpayer not the EU.

quote>

They built a couple of b roads in the highlands using eu money. I've never seen anything else though (is there othrer stuff?). Spain gets desalinisation plants, I want one two

[fukuda 351]

Spain gets desalinisation plants, I want one twoquote>

Three? What for? It's always raining in the brit islands

Anyway, it's not like we didn't pay the major part of the plants with our tax money

[belfastuniguy 18]

They built a couple of b roads in the highlands using eu money. I've never seen anything else though (is there othrer stuff?). Spain gets desalinisation plants, I want one twoquote>

This is one of the problems in the United Kingdom and the ignorance whether intentional or not in regard to how much money the UK gets from the EU. Each UK region gets over £1 billion a year to assist in new developments, infrastructure and projects.

Some examples include funding for The Eden Project, ferry terminals, airports and rail stations across the UK. Some of the most important regions that have benefited has been Scotland, Northern Ireland, West Wales and Valleys, South Yorkshire, Gateshead/Newcastle and Merseyside.

On a side note, Spain gets desalination plants becuase they have very limited quantities of fresh water....something the UK does not suffer from.

[toxicpiano 125]

Originally posted by: fukuda

Spain gets desalinisation plants, I want one twoquote>

Three? What for? It's always raining in the brit islands

Anyway, it's not like we didn't pay the major part of the plants with our tax moneyquote>

yeah well i think that all european union countries should get desalination plants even poor old doubly landlocked lichenstein which has no sea to desalinate

[Aontan 0]

Liechtenstein isn't in the EU.

[toxicpiano 125]

Originally posted by: Aontan Liechtenstein isn't in the EU.quote>

Well in that case we should fast track them into the EU and they get their free desalination plant

[duack 14]

I doubt that the EU isnt allowing Turkey in for economic reasons. Turkey has 60 million people and the Ukraine has 50 million, but Turkey's GDP per capita is higher than the Ukraine. I guess that they don't realise that Turkey isn't the same as the rest of the middle east. Besides, didnt a large proportion of Turkish people decend from Greece? At the time they were called Ionian Greeks I think.

But anyway IMO any country were the majority of the population is of european decent should be part of the EU. Including Australia, new zealand and all of North and South America. These all have economic advantages to one another so I dont see why not ^.^

[Glenni 1,445]

Originally posted by: toxicpiano

Originally posted by: Aontan Liechtenstein isn't in the EU.quote>

Well in that case we should fast track them into the EU and they get their free desalination plantquote>

If you say Norway should get some desalination plants when we join EU too, i'll smack you!

[TheQuiltedLlama 34]

Originally posted by: duack I doubt that the EU isnt allowing Turkey in for economic reasons. Turkey has 60 million people and the Ukraine has 50 million, but Turkey's GDP per capita is higher than the Ukraine. quote>

But Ukraine isn't in the EU either.  There are ongoing talks to allow Turkey into the EU, but first there needs to be reforms (which would have been introduced had the Lisbon treaty been passsed) to ensure expansion goes smoothly when a large country such as Turkey joins.

But anyway IMO any country were the majority of the population is of european decent should be part of the EU. Including Australia, new zealand and all of North and South America. These all have economic advantages to one another so I dont see why not ^.^quote>

By that reasoning all countries should be a part of the African Union.

[Lambert14 0]

Turkey will not be allowed to join the EU, it would drastically alter the power balance, and their weaker economy would seriously hurt the EU's. Not to mention the disagreements they have with current EU nations that they wont budge on, like Greece. Also, large amounts of labour from eastern europe is already flooding the western markets and causing problems in the socialist states. There are tons of problems with Turkey joining the EU, and I seriously doubt it will happen in our life time unless there are drastic changes within the EU itself.

[Q-Tips 37]

Fishing is anyways doomed as a job, these atlantic fishermen may complain, but without the regulation there would be no fish to capture to begin with.quote>

 

The world will always need food, so i dont understand how a job concerning producing food is doomed. But as long EU keep their fishing policy without taking much responsibility for the future, then you might be right ; You would be doomed working as a fisherman in EU. And so far there are many examples of "over fishing" in EU territory.

About Iceland ; As i heared, some Norwegian politicians are talking with the Icelanders to see if there might be a solution to connect them to the Norwegian Krone instead of becoming an EU member. At least so they wouldnt have to rush into an membership, not because they want to join EU, but because of the finance crisis.