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4/29/13

Iceland: Crisis-battered Iceland seen halting EU talks

The European Union's economic woes most likely helped Iceland's eurosceptic centre-right opposition oust the leftist government as voters in the crisis-battered nation failed to see the value in joining the bloc.

The Icelandic electorate on Saturday shunned the Social Democratic Alliance Party, which submitted an EU membership application in 2009 and campaigned on the issue, claiming it would tame the North Atlantic country's persistently high inflation.

The election's winning duo -- the conservative Independence Party and the centrist-agrarian Progressive Party -- have long wanted to end the bid.

Although Icelanders are still feeling the aftershocks of the 2008 financial crisis in the form of sliding living standards and ballooning mortgages, the benefits that come from losing some of their sovereignty to Brussels are hard to see for many.

The country already has a free trade agreement with the EU, and is part of the European Free Trade Association (EFTA) and Europe's visa-free Schengen zone.

Moreover, the Icelandic economy has largely recovered from the banking system's spectacular collapse, while Europe has continued to grapple with its debt woes.

The Independence Party, with 19 seats in the 63-seat parliament after garnering 26.7 percent of the vote, has pledged to hold a referendum on whether to continue accession talks with Brussels.

Read more: Crisis-battered Iceland seen halting EU talks - FRANCE 24

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