Iceland's EU membership grows more likely
It looks increasingly as though Iceland is going to apply to join the European Union, with this fascinating report that they expect to do so within the next couple of months with a view to membership in 2011. Enlargement Commissioner Olli Rehn has even gone as far as suggesting that Croatia and Iceland could join the EU at the same time.
Following the collapse of Iceland's ruling conservative government at the start of this week, a temporary centre-left government has taken over until elections take place in May. The new Social Democrat government is pro-European and will make EU membership a central theme of their campaign.
The second question for Iceland is whether they will also apply to join the euro. Their currency, the krona, has been ruined by the financial collapse, and support amongst Icelandic public opinion is actually stronger for euro membership than for EU membership. However, while it is difficult to see any significant barriers to Iceland's membership of the EU - they are a country of roughly 300,000 and have a small economy which, aside from a sizeable fishing sector, would not be difficult to integrate (indeed, they already apply most EU single market legislation) - their interest rates are at 18% and they would fall foul of the strict rules laid down in the Maastricht Treaty that govern whether a country is able to join the Eurozone
If Iceland's membership would be popular with virtually all EU countries it would be a bitter pill for the staunchest British eurosceptics to swallow. It is difficult to believe that, until recently, the likes of Dan Hannan used to cite Iceland as an example that showed Britain could prosper outside the EU.
Labels: eurosceptics, Iceland

