Fisheries accounts for around 40 per cent of Iceland's exports. (Photo: Faxi blog)

Iceland wants fair EU fish deal

ICELAND
Friday, July 24, 2009, 21:40 (GMT + 9)

Iceland's foreign minister highlighted the importance of securing acceptable fishing terms from the European Union (EU) soon after handing in a membership application in EU member state Sweden on Thursday.

"If we would get a rotten deal on fisheries the Icelandic people would get quite angry," said Ossur Skarphedinsson at a press conference in Stockholm, Dow Jones reports.

"This is not only an issue of economics. It's also an emotional issue. It is also an issue that is related to sovereignty."

Iceland's parliament last week approved starting membership talks for the sake of a more stable economic future. Last fall, the island country saw its currency plummet and its banking sector collapse due to the global financial crisis.

Minister for Foreign Affairs and External Trade, Ossur Skarphedinsson.  (Photo: MFA)

Despite having been in the free-trade European Economic Area (EEA) for the past fifteen years, Iceland has not formally requested to join the EU. Joining the EU would have obliged it to give up control over its fishing waters, a resource that provides for around 40 per cent of the country's exports.

However, as an EEA member, Iceland has already adopted about three-quarters of EU rules and directives, Skarphedinsson pointed out Thursday. This means an accession could take place within three years, he said.

Still, "I think it could turn out to be difficult to get to an acceptable solution on the fisheries and on agriculture."

With Skarphedinsson at the press conference, Swedish foreign minister Carl Bildt confirmed that much has already been done to accept Iceland as an EU member.

"That being said, there are important issues that must be dealt with, and there will be a thorough debate both in the EU and in Iceland," he said.

Both ministers expressed confidence that talks will eventually work out in favour of the interests of both parties.

Once the negotiations stage is over, Iceland must hold a referendum on whether or not to accept accession.

Skarphedinsson's majority governing coalition Social Democratic Alliance party openly backs EU membership, which would require eventual adoption of the euro.

"Our experience with the Icelandic currency has been so bad, not only during the crisis but since 2001, it's most important for a lot of Icelandic industries to have a stable currency environment."

Iceland floated its currency in 2001 as part of a broad deregulation and privatisation drive that some believe led to the country's financial crisis seven years later.

Related articles:

- To salvage economy, Iceland seeks EU membership
- Iceland making progress on economic recovery, IMF says

By Denise Recalde
editorial@fis.com
www.fis.com