The new Icelandic government has halted negotiations with the EU and withdrawn from joining the Union, stated Iceland’s Foreign Minister Gunnar Bragi Sveinsson in Brussels, according to euobserver.com.
The minister, who came to Brussels solely to inform the European Commission of this decision, added that both parties forming the new Icelandic government advocated for the withdrawal from negotiations with the EU – the citizens supported them in the elections.
European Commissioner for Enlargement Štefan Fuele stated that it is not easy for him to accept such a decision from Iceland. He experienced it as a personal blow, but he will respect the citizens’ decision. He added that he personally believes that negotiations with Iceland should continue.
Iceland began negotiations in 2010. Reykjavik made progress in negotiations with Brussels by avoiding sensitive issues, particularly the most important one – fisheries, which is the biggest obstacle to membership. Since separating from Denmark in 1944 through a referendum, Iceland has developed into an advanced state. The main economic sectors are fisheries, technology, tourism, and finance.
Due to the collapse of the hypertrophied banking sector in 2008, Iceland fell into a deep recession and had to seek an IMF loan. In 2011, it renewed growth, which was 1.6 percent in 2012. Unemployment is at 4.7 percent. It has emerged from recession and unemployment, but with lasting scars for its 322,000 inhabitants. One in ten households is behind on mortgage payments, and many are over-indebted.
