After government's fall - as a result of global economic crisis

Iceland's Shortcut to EU

The idea of Iceland`s EU association has been actual for a while, for Brussels` officials consider the EU enlargement to the "farthest northern European border" as one of their important tasks. Commissioner Olli Rehn supports that idea, never missing the opportunity to point out the significance of this small Northern Arctic country`s association to community that already counts 27 members. Iceland`s economic downfall, as well as the collapse of their national currency krona caused by global financial crisis, has influenced political elite in Reykjavik to consider that option


By NENAD RADICEVIC
* a foreign affairs journalist with Politika daily, Belgrade
Story from CEV magazine - an online publication of the Centre for European Values


Iceland, the small country on the far northwest of Europe, could become EU member within two years, if soon decides to apply to join the 27-nation block. According to Olli Rehn, EU Commissioner for Enlargement, Iceland and Croatia could approach the European Union until 2011. If so, Iceland could easily become the first country to pass the path from applying to full EU membership in shortest period of time - shorter than Finland, a country that still holds a record, for it has applied for EU membership in 1992, and three years later it became a part of the Union. Although some in Serbia estimate that the "Iceland case" demonstrates that shortcuts to the EU exist, one has to bear in mind that this Arctic country is already a part of the European Free Trade Association (EFTA) which will allow Iceland`s faster Eurointegration process.

The idea of Iceland`s EU association has been actual for a while, for Brussels` officials consider the EU enlargement to the "farthest northern European border" as one of their important tasks. Commissioner Olli Rehn supports that idea, never missing the opportunity to point out the significance of this small Northern Arctic country`s association to community that already counts 27 members. Iceland`s economic downfall, as well as the collapse of their national currency krona caused by global financial crisis, has influenced political elite in Reykjavik to consider that option.

Iceland`s government was the first to fall as a result of global economic crisis, and only after Parliament elections, expected to be held in May, will be clear if this island with 330.000 residents is ready to take the road toward the European Union. Social democrats, which support EU accession, began negotiations on temporary government with Left-Green Movement, which essentially does not support the idea of accession to the Community, though it has announced the endorsement of referendum on negotiations with EU. Conservative Independent Party and its leader, the outgoing Prime Minister Geri Haarde, have declared against European integrations, as well as liberal Progressive Party which will probably support temporary government, but even the hardest eurosceptics on Iceland`s political scene are beginning to change their attitude.

According to public opinion researches, EU membership support fluctuates in the past few months among Icelandic people. In the end of 2008 Frettabladid daily has published that 70 percent of examined has supported the referendum on EU membership, 49 percent of which would eventually vote for and 27 percent against association to the European Union. But a recent Capacent Gallup research showed that only 38 percent would support the accession.

If decides to accept EU membership, Iceland would certainly gain privileged status unlike other potential candidates. But not because it has reached official Brussels` affection, but because, as Olli Rehn once said, Iceland has "negotiated two-thirds of criteria" necessary for EU accession.

Iceland was among the first countries to become a member of EFTA, as well as Schengen area associate member. European Economic Agreement, signed in 1994, enables Iceland to implement most of the regulations regarding common European market, with the exception of legislations on agriculture and fishery. Although without right to vote, this agreement enables Iceland to participate in large number of EU agencies and programmes regarding businesses, environmental protection, education and researches.

However, these legal exceptions considering fishery and agriculture could become an obstacle on Iceland`s way to EU integrations. Fishery represents the major economic area and it is a part of Island`s national identity, which means that this country would not be able to run this industry`s policy independently once it becomes EU member.

Other members will certainly insist on respecting fishery quotas in EU, as well as on respecting the prohibition of whale hunting. Fishing in Icelandic territorial Atlantic waters will not only be the Icelandic fishermen`s privilege, as it is now, for the Law on Ecological and Fisheries Protection Zone is in force. After this legislation became valid, Icelandic people were quits with Scottish fishermen due to their illegal ingression in Icelandic territorial waters, which proves that this issue is of high importance for Iceland.

Besides, in the history of European integrations such examples can be found - Norwegians have voted against EU joining, after the negotiations on membership came to an end, because they were not satisfied with the agreement on fishery. On the other hand, European integration supporters in Iceland are encouraged by the national Minister of Fisheries` announcement, who said that despite his disagreements on EU association these issues should be considered in different way. This need for observing things in different way was caused by global economic crisis.

European administration in Brussels sees the eventual Iceland`s EU access in connection with the Lisbon Treaty ratification, made to reform Union in an institutional sence. If Ireland and Czech Republic adopt Lisbon Treaty, Iceland would be an ideal new member necessary for a so called exit strategy on the Lisbon Treaty adoption.

This strategy means that guarantees promised to Irish (EU Commissioner position, right to military neutrality, miscarriage prohibition, independent tax system...) should be added to the first EU member`s accession agreement, which would later be ratified by every other EU country. It will keep away other EU members, which have already accepted the Lisbon Treaty, from ratifying changes of the agreement regarding Ireland in new procedure.

Iceland`s EU integration would speed up Croatia`s association, a country that has been stuck in the process of negotiations, among others, because of disagreements with neighbouring Slovenia.

"Brussels prefers to accept two countries at once in EU, which means that it would be possible that Iceland could be accepted together with Croatia," said Olli Rehn, EU Commissioner for Enlargement to the British Guardian. Rehn`s optimistic words were minced by Krisztina Nagy, his spokesman, who said that Croatia will be judged by its merits and efforts.


(Published: 10.02.2009.)