Iceland review - 2012, Síða 62

60 ICELAND REVIEW

POLITICs
Já Ísland is the Icelandic pro-EU move-
ment. The name translates to: ‘yes, Iceland.’
And its slogan is: ‘A nation among nations.’
Já Ísland provides numerous arguments for
joining the EU. These include:
+ Food prices would be much lower due
to customs tariff elimination on imported
goods.
+ The euro introduces price stability.
Inflation, which has been around 6 percent
in Iceland in past decades, will arguably be
reduced to 1 to 3 percent. Real interest
rates, which have been close to 6 percent,
are likely to drop to between 1 and 3 per-
cent as well.
+ Inflation indexation of loans will also
become unnecessary. As a consequence,
mortgage loan payments would be greatly
reduced. Today, when Icelandic homeown-
ers have repaid their mortgages, they have
paid an amount that equals the price of
2.7 houses when interests are taken into
account. In the eurozone, people pay back
a house and a half.
+ The EU offers strong regional policy,
supporting employment in the member
states’ more rural regions. The northern-
most regions of Iceland will get support
from the EU funds.
+ Iceland has already adopted much of
the EU legislation (through the EEA)
without having had a say in it. Within the
EU, Icelanders can influence the legisla-
tion.
Heimssýn (‘World vision’) is the Icelandic
anti-EU movement. Its goal is simple:
‘Keep Iceland outside the EU.’ Its slogan
reads: ‘Stop this nonsense. Say no to the
EU.’ Heimssýn provides numerous argu-
ments for not joining the EU. Here are
some of them:
– Iceland will lose its sovereignty. It will
lose the right to make independent trade
agreements with other countries, lose
control over its tariff environment and the
country’s highest court will be transferred
to the EU. Iceland would also lose control
over its 200-mile fisheries zone.
– The EU is evolving from a union
of nations into a superpower similar to
the United States. Because of how small
Iceland is, it would have little impact on
the decisions made within the EU.
– The center of power is distant from
Iceland. The officials in Brussels are locat-
ed 2,000 kilometers away. Why should
they be trusted to solve local issues?
– In the future, the EU will become
a military power conscripting Icelandic
youth.
– Icelandic agriculture would suffer
greatly, losing its customs protection. It
would result in unemployment and a
drop in exports. It is also a matter of food
security, to maintain domestic food pro-
duction.
THe nexT STePS
Iceland is currently in the middle of
the EU negotiation process. Considerable
efforts are needed to find a solution on the
following subjects: free flow of capital (this
is actually a part of the EEA agreement,
but Iceland has not been able to fulfill the
conditions since the crash of 2008); agri-
culture and rural development; fisheries;
and economic and monetary policy.
Negotiations could finish in the spring
of 2013. That means that there will prob-
ably be a parliamentary election before the
end of the application process.
This leaves the potential for an interest-
ing twist. The Independence Party, the
party currently leading in the polls, has
the policy of immediately bringing the
negotiation process to an end. If the
Independence Party gets the majority of
votes in the 2013 election, it might gain
a leading position in the next govern-
ment and put the question on whether
to continue the EU talks to a national
referendum.
Paradoxically, this is done in the name
of democracy: the referendum would leave
it to the voter to determine whether he
or she should be able to decide whether
to join the EU. We can argue, using the
same logic, that it is only fair to add yet
another election, asking the voter to vote
on voting on voting on joining the EU.
This dangerous way of thinking can easily
turn into an infinite loop of pretty hard
choices.
As for me, I will make my decision when
the contract is ready. The deal breaker will
undoubtedly be the chapter on fisheries,
and I feel that many Icelanders share my
opinion. And once I’ve decided, I want to
vote. 
The ARGumenTS AGAInST
JoInInG The eu
The ARGumenTS FoR
JoInInG The eu