Iceland makes move towards EU

Iceland took a small but potentially important step today towards joining the European Union when the prime minister promised…

Iceland took a small but potentially important step today towards joining the European Union when the prime minister promised to table a bill in parliament authorising the start of membership talks.

"There will be a government resolution tabled (on EU talks)," prime minister Johanna Sigurdardottir said on state television.

Ms Sigurdardottir did not give a timeframe for when the bill would be put forward. But a politician, who asked to remain anonymous, told Reuters the government would introduce it next week when parliament convened.

Ms Sigurdardottir's Social Democrats have been in favour of EU talks but their coalition partners, the Left-Greens, have been much more cautious about joining the union.

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In the wake of the island's economic meltdown last October, many of its 320,000 people have warmed to the idea of joining the EU and ultimately adopting the euro currency.

The Icelandic crown virtually ceased trading due to the crisis, forcing the imposition of strict capital controls so the country could ensure it was able to import vital goods such as food and medicine. Iceland late last year received a $10 billion financial rescue package led by the International Monetary Fund.

The Independence Party, which led a government coalition up until earlier this year, was fiercely opposed to EU membership, which it believed could be particularly damaging to Iceland's important fishing sector.

A new Gallup poll for state television released today showed 61.2 per cent were in favour of EU talks and 29.6 per cent against. But those polled were evenly split over the issue of actual membership.

The two coalition partners, while divided on the issue, have been in talks over how to take the EU question forward.

Reuters