Iceland suspends EU entry talks and calls referendum

[-:Undertaker:-]

http://www.telegraph.co.uk/news/worl...eferendum.html

Iceland heads for EU referendum

Iceland has suspended European Union entry talks until after holding a referendum that is almost certain to reject membership.

Sigmundur Gunnlaugsson, left, leader of Iceland's Progressive party, with Iceland's President Olafur Ragnar Grimsson

The tiny island's move follows overwhelming public hostility to joining the EU, with only 25 per cent of people supporting it and is the first time that a country has changed its mind mid-way through entry talks.

A new coalition government has emerged in Iceland following elections last month where the EU was a major issue and has made the pledge for a popular vote the centre of its political programme.

"We will not continue the accession talks with the EU until after a referendum," said the coalition agreement unveiled by the island's liberal Progressive Party and conservative Independence Party.

The decision is a blow to the EU which is no longer regarded as a safe economic haven for small nations following the eurozone crisis and comes as Britain prepares for a 2017 referendum on membership.

Iceland applied for EU membership in 2009 following the collapse of its banks, which were mot bailed out by the government but now enjoys faster economic growth than the EU average at a time when the eurozone is still grappling with problems in its uncompetitive and troubled financial sector.

Negotiations between Reykjavik and Brussels began in July 2010 and work had advanced on 80 per cent of the 33 "chapters" required for EU membership before slowed before Iceland's elections in April "to give the election campaign the room it needs".

"It's their choice," said an EU official.

No other candidate has pulled out during talks although Norway voted against joining the EU after the completion of negotiations in 1972.

The Icelandic referendum will fuel British debate on EU membership and was welcomed by Nigel Farage, the leader of Ukip, as "fabulous news".

"They have really shown the way forward. Iceland clearly wants to protect its democracy, its fisheries and its economy. Little Europhiles should note that Iceland just signed a free trade agreement with China and has returned to economic growth," he said.

"This move by Iceland shows that the EU is more and more perceived as a failing political and economic project."

Martin Callanan MEP, the leader of the European Conservatives, which are affiliated to Iceland's Independence Party, also welcomed the decision.

"I can well understand why Iceland is reluctant to join the EU at the moment," he said. "It shows what a good idea a referendum is."

According to our political class, tiny Iceland should be a hell hole now. We're told that Britain (the worlds sixth biggest economy) can not survive outside the EU in the big scary world yet here is tiny Iceland doing better than all the Eurozone countries including ourselves.

It's exactly the same as we were told years ago that if we didn't bail out the banks, the sky would have fallen in and we'd be a Third World country now. Well, Iceland ignored all that - and now Iceland is growing faster than all the other countries because it liquidated its bad debt which is the only way to get out of a unsolvable debt crisis.

Or just the same as back in 2000 and around that time, we were told that if Britain didn't join the Euro we would suffer and that the Pound Sterling was an 'outdated' currency for an increasingly globalised world. It turned out to be complete ********, just as everything else they have come out with.

Good on Iceland which now joins Switzerland and Norway as wealthy non-EU countries in Europe. Hope to join you soon.

Thoughts?

[Kardan]

Not sure if my memory serves me right, but I thought Iceland had a lot of trouble back around 2008 as well? I'm sure their banks were in a lot of trouble?

EDIT: Nevermind, this is about the recovery of Iceland by not being in the EU All makes sense

[-:Undertaker:-]

Not sure if my memory serves me right, but I thought Iceland had a lot of trouble back around 2008 as well? I'm sure their banks were in a lot of trouble?

It did yeah, just like US banks, British banks and Eurozone banks.

The key difference is that Iceland held up its hands and basically said "no, we're not going to bankrupt the state and people by forcing them to bailout corrupt and bust banks." and they allowed the banks to collapse whereas we bailed them out. A few years down the line and Iceland has more or less recovered as it as liquidated its debts and insolvent banks, whereas we are the opposite.

I remember on this forum a few years ago when the crisis happened, nearly everybody was against me in arguing that the banks should be saved from collapse as otherwise, as the government put it at the time, the sky basically would have fallen in. Iceland proved them wrong.

[Chippiewill]

Can't really compare the economy of a small island like Iceland with that of one of the world's most important financial centres.

Almost as bad as the people who try to apply home economics to a county.

[-:Undertaker:-]

Can't really compare the economy of a small island like Iceland with that of one of the world's most important financial centres.

Almost as bad as the people who try to apply home economics to a county.

Yes you can. The EU constantly argues that in comparison with China, India, the United States etc - that Britain (despite being the worlds sixth largest economy and with, as you say, the worlds number one financial centre) couldn't survive outside the EU.

Tiny Iceland disproves that. Small Switzerland disproves that. 'Isolated' Norway disproves it.

If we were a small country, the EU would be saying exactly the same - and even if we were small (which we are not), it still wouldn't stand up to scrutiny.

[GommeInc]

Iceland isn't in a deeper mess because they're free of the EU. It's starting to become a well known fact that if you're a struggling nation with EU membership, you're going to be a struggling EU member for as long as possible. Iceland was worse than Italy and Ireland in some respects, yet it has managed to recover stronger than the two - Italy is still plagued and Ireland are too. Being an EU member will only hinder Iceland, not making it stronger.