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Icelanders ought to vote to restart negotiations to hitch the EU not as a result of they’re scared by Donald Trump’s Arctic sabre-rattling however for constructive, financial causes, in accordance with the island’s prime minister.
Kristrún Frostadóttir advised the Monetary Instances that Iceland hoped to proceed to be “within the center” of the US and Europe geopolitically, because the Arctic island of 390,000 folks gears up for a referendum by 2027 on resuming its EU bid that it dropped greater than a decade in the past.
Some diplomats and commentators have instructed that Trump’s army and financial threats in opposition to Denmark as a part of his efforts to take management of Greenland may pressure Iceland and Norway to contemplate becoming a member of the EU for help.
“I feel Trump is nice information for all those that wish to get Norway and Iceland into the EU, simply as Putin was good at getting Finland and Sweden into Nato,” mentioned one senior European politician not too long ago.
Requested whether or not Trump’s feedback on Greenland may have an effect on Iceland’s EU debate, Frostadóttir replied: “It’s essential when it comes to discussing whether or not to open negotiations with the EU, or if that ends in a sure [then joining the EU], that individuals do it not as a result of they’re scared or as a result of they assume they should or are pressured to.”
The Social Democrat prime minister added that Icelanders ought to vote sure “as a result of they help this as [a] step ahead when it comes to the financial system, when it comes to tradition”.
Discussions about becoming a member of the EU have lengthy been controversial in Iceland, a member of Nato. Instantly after the 2008-09 world monetary disaster that hit Iceland maybe more than any other country, its earlier Social Democrat-led authorities utilized for EU membership and began accession talks with out holding a referendum first.
The talks have been abruptly known as off by two centre-right events in 2013 over sovereignty issues and disagreements with Brussels on fisheries.
A referendum on restarting the method has been mooted ever since, and was formally included within the programme of Iceland’s new authorities on the finish of final yr. Out of the three-party coalition, Frostadóttir’s Social Democrats and the Liberal Reform get together help restarting negotiations with the EU a few potential accession whereas the populist Folks’s get together opposes it.
Frostadóttir mentioned she wished the federal government to make progress on “home” points similar to housing, welfare and the financial system earlier than transferring to a debate on the EU. Because of the usually “simplistic” debate concerning the EU, the federal government has arrange a panel of specialists to weigh the professionals and cons of retaining the Icelandic króna over the euro.
New EU members are ultimately required to undertake the widespread foreign money, except they safe an opt-out like Denmark or in the event that they persistently fail to satisfy financial standards for becoming a member of the Eurozone.
An opinion ballot final month confirmed 45 per cent of Icelanders in favour of becoming a member of the EU and 35 per cent in opposition to it. Greater than half wished to eliminate the króna as a consequence of sturdy inflation and a few of Europe’s highest rates of interest lately.
Trump’s aggressive consideration on Greenland has drawn additional concentrate on to the Arctic and its geopolitics, as smaller nations search to maintain their peaceable view of the far north as an alternative of changing into an enviornment for competitors between massive powers.
Iceland grew to become unbiased from Denmark in 1918 and a republic in 1944 however doesn’t have a army and has had shut defence ties with the US and Nato for many years.
“We see some similarities” with Greenland, Iceland’s prime minister mentioned forward of Greenland’s parliamentary elections subsequent month, during which independence from Denmark is prone to be a outstanding subject.
Frostadóttir mentioned that if Greenland selected to emulate Iceland and change into unbiased whereas too small to have a daily military, it could in all probability have to depend on exterior help. “We’re capable of be right here with no army as a result of we’ve agreements with Nato, with the US.”
She added that Iceland was “very properly related to the skin world” when it comes to its financial system and transport, having change into a major vacationer attraction — one thing Greenland has mentioned it desires to be taught from.
However Frostadóttir mentioned Iceland wanted to make sure its tourism was “sustainable”, as thousands and thousands of holiday makers from Asia and the US in addition to Europe put strains on infrastructure and housing.
The Icelandic prime minister additionally mentioned the island wanted to consider carefully about the way to use its considerable energy sources by way of geothermal and hydroelectric vegetation. Aluminium smelters are the primary shoppers however information centres are rising in significance.
“We have to be conscious that we sit on sources that numerous different nations don’t have. Traditionally, we went via the route of exporting our energy via aluminium. Ought to we be utilizing new vitality for one thing else? There’s a excessive requirement that new vitality that’s harvested goes to inexperienced industries.”
