15 December 2008
Iceland could make a surprise bid to join the European Union (EU) as early as 2009, Enlargement Commissioner Olli Rehn said.
Until now, Iceland has been content with its status outside the EU, however, the recent economic turmoil in the country, which led to the collapse of Icesave, the internet savings bank that is owned by Landsbanki, has led the country to reconsider its position.
"Clearly there is movement in Iceland," Rehn said.
Icelandic Prime Minister Geir Haarde has set up a commission to consider the possibility of EU membership, declaring that Iceland could start EU talks under the right circumstances.
If Iceland decided to apply for EU membership, the process may well be completed swiftly due to the country's membership of the European Economic Area(EEA), Commission Rehn's office said.
Speaking to the BBC, Rehn's spokesperson Anna-Kaisa Itkonen, said: "Considering Iceland's already far-reaching economic integration with the EU, I would expect that accession negotiations can progress clearly much faster than with other countries that do not have such strong ties with the EU."
A recently published opinion poll carried out for Icelandic newspaper, Frettabladid, showed that around 60% of Icelanders are now in favour of European Union membership for the country.
Research also shows that 68% percent of Icelandic people would now prefer the euro to the Icelandic krona.
Editorial comment:
“In the past when a country has joined the EU property prices have jumped. EU entry should offer Iceland’s ailing economy, currency, and residential property market, a timely boost.
“The Icelandic government has already reached an agreement with the International Monetary Fund (IMF) on a comprehensive stabilisation programme, which will include a 2.1bn loan from the IMF.”
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