Former euro supporter now opposes Iceland joining EU

Halldór Halldórsson, chief executive of Ískalk, says Iceland should retain its own currency if it joins the European Union, mbl.is reported. He made the remarks at a meeting of the Áfram Ísland movement in Ísafjörður on Sunday.

Halldór, a former mayor of Ísafjarðarbær and former Reykjavík leader of the Independence Party, previously supported Icelandic EU membership and considered adopting the euro a promising option for the country.

He now opposes EU membership, saying his position changed while Iceland was conducting membership negotiations with the bloc, in which he took part.

“Everything looked very good at the beginning, but when you see the bigger picture, the conclusion is always the same. Iceland pays more in than it gets back, and we do not control which projects are prioritised at any given time,” Halldór said.

He said it would remain important for Iceland to keep an independent currency even if the country joined the EU. The króna acts as a shock absorber when difficulties arise, he said, helping people keep their jobs, while the euro has the opposite effect.

Halldór also pointed out that Iceland already has access to the European single market through the European Economic Area agreement. He said this secured Iceland’s interests in relation to Europe, which accounts for about 17% of the global economy.

“We can make agreements ourselves with the other 83%, but membership of the EU closes that off completely,” he said.

Halldór said Iceland had shown over time that its small size could be a strength. He attributed his changed position to his increased familiarity with both the EU and the euro.

“The better I have got to know the EU and the euro, the less I like either of them,” he said.