Iceland's EU debate

While outsiders may think that the near-bankrupt country Iceland should do anything to find shelter in the EU's bloc of 27 nations, the matter is more complicated from the inside. For several days now, a first application to join the European Union has been discussed in the country's parliament a vote on the issue was again postponed on Wednesday evening.

Iceland's leaders are to attempt to find a solution on Thursday but, as previous efforts have shown, the saga may not end there due to the continued struggle to find a common stance on membership talks.

Prime Minister Johanna Sigurdardottir and her Social Democrats are convinced that closer ties with Europe would help the country overcome the financial crisis and stabilize Iceland's shattered economy. She would like to put the application forward sooner rather than later.

“We Social Democrats are pushing the application to be put forward at the meeting of the foreign ministers at the end of July,” Sigurdardottir told reporters. “And then it can go before the EU in December. So we can get a result in this matter as soon as possible and let the nation decide in a referendum.”

Vote too close to call, says prime minister

Sigurdardottir's Social Democratic party holds 20 out of 63 seats in the parliament. But hers is the only party which is not divided over the issue. The Left-Green governing coalition partners are traditionally opposed to EU membership. And since five out of 14 Left-Greens have already announced they wouldn't support the government's proposal, a majority in the parliament for the EU bid could only be reached with votes from the opposition.

“(Thursday's) vote will be a close call,” Sigurdardottir admitted. “This is one of the biggest decisions that the parliament has ever had to make.”

Populace divided

It's not only the parliamentarians who are divided on the issue. The country's citizens are also split on whether joining the EU is the right thing to do. Membership in the eurozone is the biggest factor in favor. Most Icelanders would be happy to adopt the euro as a currency instead of the devalued Icelandic krona.

The main argument against full EU membership would be a loss of control over agriculture and the fishing industry. Iceland's membership in the EU would mean taking part in the bloc's common agricultural and fisheries policy. This would mean handing over the control of the lucrative fishing grounds around the island to Brussels.

Iceland is already a member of the European Economic Area and the border-free Schengen zone, which could speed up the application process. Around two thirds of all Icelandic legislation is already in line with EU rules in many areas

According to the most recent figures, around 70 percent of Icelanders support EU accession talks, and if the bid goes through in parliament and accession talks in Brussels are successful, the nation will have the last say in the matter. If the citizens approve the deal in a referendum, Iceland could join the bloc as early as 2011.

Author: Susanne Henn /na

Editor: Chuck Penfold