26.05.09: Iceland asks parliament to start EU talks - 0 views
www.euractiv.com/...article-182617
enlargement enlargementpolicy_candidates iceland enlargementpolicy_eu
shared by Prof. Dr Wolfgang Schumann on 26 May 09
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Iceland's government submitted a proposal to parliament on 25 May to authorise the start of negotiations for membership of the European Union. Analysts say the country's accession talks could be finished in 12 months.
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Background: Iceland was hit severely by the economic downturn. Prior to its meltdown, Iceland's banking-sector assets had grown from about 96% of GDP in 2000 to about 800% by the end of 2006, and were worth around 10 times its GDP on the eve of the crisis. But late last year the country received a $10 billion financial rescue package led by the International Monetary Fund. Iceland's centre-right government collapsed in January following the country's bankruptcy as a result of the global financial turmoil. Since then, the country has been governed by a centre-left coalition under interim Prime Minister Johanna Sigurdardottir. As Croatia's EU accession bid continues to stall, Brussels has indicated that Iceland is welcome to apply for membership, providing a piggy-back for amendments to the Lisbon Treaty promised to Ireland in the hope of obtaining a positive result in the second referendum on the text, planned for October (EurActiv 30/01/09).
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Support for negotiations on EU membership, and ultimately adopting the euro currency, has risen following the economic meltdown that ensued after Iceland's banks all collapsed under the weight of massive debts. Finance Minister and Left-Green leader Steingrimur Sigfusson has said he would not oppose the proposal, and Icelandic media have speculated about half of the party could vote in favour.