Iceland’s new government has revealed plans to hold a referendum on European Union membership by 2027. Under the leadership of Prime Minister Kristrún Frostadóttir, the government will also establish a panel of experts to evaluate whether Iceland should retain its national currency, the krona, or adopt the euro. Foreign Minister Gunnarsdóttir is expected to lead the discussions on EU accession, according to EuroNews.
Iceland’s EU Membership Journey
Iceland initially applied for EU membership on July 17, 2009, and by February 2010, the European Commission gave a positive recommendation to begin accession negotiations. The Council agreed in June 2010 that Iceland had met the necessary conditions to start talks. However, in 2013, Iceland paused the negotiations, with the EU stating that the process could resume if Iceland decided to proceed.
The 2008 financial crisis, Brexit, and other internal factors have prompted Iceland to reconsider the prospect of joining the EU. A recent poll by Maskína revealed widespread public support for a referendum on the issue, with 54.3% of respondents in favor of EU membership. Furthermore, 74.2% of Icelanders believe a referendum should be held on the matter.
The poll also showed that 66.8% of respondents thought EU membership would benefit households in Iceland. If the country does join the EU, it will also be required to adopt the euro, something that many Icelandic businesses are already preparing for, given the euro’s stability and favorable loan conditions, as reported by Ireland Review.
