Iceland moves closer to joining the EU

REYKJAVIK – Iceland’s new coalition government said yesterday it would ask parliament next week to back moves to seek EU membership…

REYKJAVIK – Iceland’s new coalition government said yesterday it would ask parliament next week to back moves to seek EU membership, with a clear majority expected to vote in favour.

Prime minister Johanna Sigurdardottir’s pro-EU Social Democrats have long been at odds with their Eurosceptic coalition partners, the Left-Greens, on the issue.

But support for joining the 27-nation bloc, and ultimately adopting the euro, has risen sharply since the country’s economic meltdown in October.

Finance minister Steingrimur Sigfusson, the Left-Green leader, suggested in a newspaper interview that he would not oppose the government’s proposal.

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“Obviously, I’m a leader in the coalition, which is based on certain things, and I am not used to running away from what I have negotiated,” he told the DV newspaper. “One could perhaps conclude, based on this, that I’m unlikely to vote against the proposal.”

Ms Sigurdardottir, who wants an application sent no later than July, said last week that a majority in parliament favoured starting accession talks.

Analysts say roughly half of the Left-Green MPs are expected to vote in favour of an application, with the rest abstaining. Support for beginning talks has also grown in other parties.

A draft of the proposal obtained by Icelandic website www.pressan.is showed that if approved, an application for EU membership would be submitted to Brussels and that following negotiations a referendum on a proposed treaty would be held.

The Icelandic króna virtually ceased trading due to the crisis triggered by the global credit crunch. Strict capital controls were introduced so that the country could continue to import vital goods such as food and medicine. – (Reuters)